3.3.5

Economic Factors Causing 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 the value to them by creating products or services.

Jump to other topics

1Physical Geography

1.1River Environments

1.2Coastal Environments

1.3Hazardous Environments - Tropical Cyclones

1.4Hazardous Environments - Earthquakes & Volcanoes

2Human Geography

3Global Issues

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