4.2.5

Breaking Out of the Poverty Cycle

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Economic Approaches to Escaping Poverty

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.
  • Debt relief, like the Ivory Coast's 2012 relief could help accelerate development.
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 sell undifferentiated commodities and other nations add value to them by creating products or services.
  • Increasing a country's ability to manufacture and add value could accelerate development.
Jump to other topics
1

Geography Skills

2

Geology of the UK

3

Geography of the World

4

Development

5

Weather & Climate

6

The World of Work

7

Natural Resources

8

Rivers

9

Coasts

10

Glaciers

11

Tectonics

12

Climate Change

13

Global Population & Inequality

14

Urbanisation

15

Ecosystems

16

Life in an Emerging Country

17

Analysis of Africa

18

Analysis of India

19

Analysis of the Middle East

20

Analysis of Bangladesh

21

Analysis of Russia

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