5.1.8

Economic Causes of Uneven Development

Test yourself

Which Economic Factors Cause Uneven Development?

The following economic factors are likely to restrict development:

Illustrative background for High national debtIllustrative background for High national debt ?? "content

High national debt

  • Poor countries often borrow money to build infrastructure and develop their economies.
  • But because they are poor countries, lending to them is risky. Because of this, they have to pay a higher interest rate on their loans.
  • In 2005, Malawi was spending 9.6% of its GNI on paying its debts & interest. This was double Malawi's spending on healthcare.
Illustrative background for Low value add from primary productionIllustrative background for Low value add from primary production ?? "content

Low value add from primary production

  • Primary products are raw materials that are dug up (minerals), cut down (wood), or farmed (crops like coffee).
  • Less developed nations generally export the raw materials (aluminium, wood, or coffee), instead of 'adding value' to the products themselves.
  • They often sell undifferentiated commodities and other nations add value to them by creating products or services.

Jump to other topics

1The Challenge of Natural Hazards

1.1Natural Hazards

1.2Tectonic Hazards

1.3Weather Hazards

1.4Climate Change

2The Living World

3Physical Landscapes in the UK

3.1The UK Physical Landscape

3.2Coastal Landscapes in the UK

3.3River Landscapes in the UK

3.4Glacial Landscapes in the UK

4Urban Issues & Challenges

5The Changing Economic World

6The Challenge of Resource Management

6.1Resource Management

6.2Food

6.3Water

6.4Energy

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