Development
Economic development means economic growth, plus changes. So, for economic development to occur there must be not only an increase in the GDP, but also change. Economic growth is the increased ability of countries' economy to satisfy the needs and wants of its population overtime. Explain the curve (PPC is Economy's current, PPCą is when it experiences growth) However this is only one part of Economic Development. Change + Growth is equal to development, and there can be many different changes, that could include for example, change in the status of women, or the industrial sector (It's usual for an LDC to have 60-70% of its population working in low paying agriculturea Changes could mean, more of an LDC's population to be involved in Secondary or tertiary industries. For example, 6% of Australia's population is involved in Primary industry. - Development of a more sophisticated financial sector. - Dynamic economya Where when conditions change, the economy is likely to grow and change. - Changes in the distribution of income (Equality VS Efficiency) a Brazil (Debating going on if Brazil actually grew,
Balance of payment problems is the third inhibiting factor that LDC's face. The CAD is partly self perpetuating a borrow to offset CAD a^ intrest repayments. Buying food a Oppurtunity cost = less investment. Narrow export base also creates a problem a Fiji. Exports suffer the demand and supply side problems a Insects, locus, draughts, cyclones. On the demand side problems associated with syntehtic products a close substitutes, oversupply. Eg/ Dumped sugar from beet. Man made fibres as substitutes. Another problem is that DC's put tarriffs to protect their own against LDC's prdocuts. Eg/ EU placing tarriffs on sugar from LDC's to protect it's sugar beet market. TNC's or Multinational Corporations, which they are otherwise called, have played their part well. By exploiting other countries which have cheap labour and some resources, they have effectively gained themselves a reputation of being, what some people call, the second phase of colonists. Their ways of Transfer Pricing, amongst other methods, add to the vicious circle of poverty. TNC's however are only one part of why the imbalances exist, and we can look at a variety of other inhibiting factors that make LDC's as they are today. We can also see two other indices, the literacy rate and the infant mortality. Japan might only have a 4/1000 infant mortality rate, but Angola for example has a whopping 176/1000 infant mortality rate, a substantial difference. In Canada, the literacy rate is 97% whereas in Nigeria, it's a lowly 14%. The second inhibiting factor is the rapid population growth and high dependancy on parents. In many LDC's, natural increase in po
Some common words found in the essay are:
IncomeaLow Savings, North America, Development Change, Eg/ EU, Tourism Sugarcane, Transfer Pricing, , LDC's CAD, Multinational Corporations, Britons European, economic growth, inhibiting factor, economic development, factor ldc's, infant mortality, poorly developed finance, vicious circle, world's resources, ldc's population, below poverty line, literacy rate, savings low capital, population involved, vicious circle poverty, inhibiting factor ldc's,
Approximate Word count = 1097
Approximate Pages = 4 (250 words per page double spaced)
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