8.1.7

Development: Economic Causes

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

1Paper 1 - Changing River Environnments

2Paper 1 - Changing Coastal Environments

3Paper 1 - Changing Ecosystems

4Paper 1 - Tectonic Hazards

5Paper 1 - Climate Change

6Paper 2 - Changing Populations

7Paper 2 - Changing Towns & Cities

8Paper 2 - Development

9Paper 2 - Changing Economies

10Paper 2 - Resource Provision

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