5.1.8

Economic Causes of Uneven Development

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Which Economic Factors Cause Uneven Development?

The following economic factors are likely to restrict development:

High national debt

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.
Low value add from primary production

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
1

The Challenge of Natural Hazards

1.1

Natural Hazards

1.2

Tectonic Hazards

1.3

Weather Hazards

1.4

Climate Change

2

The Living World

2.1

Ecosystems

2.2

Tropical Rainforests

2.3

Hot Deserts

2.4

Tundra & Polar Environments

3

Physical Landscapes in the UK

3.1

The UK Physical Landscape

3.2

Coastal Landscapes in the UK

3.3

River Landscapes in the UK

3.4

Glacial Landscapes in the UK

4

Urban Issues & Challenges

5

The Changing Economic World

5.1

The Changing Economic World

5.2

Economic Development in the UK

6

The Challenge of Resource Management

6.1

Resource Management

6.2

Food

6.3

Water

6.4

Energy

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