3.3.5

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

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2

Human Geography

3

Global Issues

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