Africa

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  • Africa
    • struggle to development
      • crippled by debt
        • in 1970's OPEC became rich as petroleum because more valuable and price doubled
          • banked their earnings in 'the world bank'
            • lent money to developing countries eg Africa
              • Africa failed to develop and global interest rates doubled
                • to stop the world's bank from collapsing the international monetary fund used the solution of structural adjustment to make repayments more affordable
                • government spending heavily cut
                  • in arusha in Tanzania
                    • 200 miles to a local hospital
                      • only to find their is a lack of medicine and beds and is expensive
    • Zambia
    • poverty
      • economically reliant on producing produce to sell abroad
      • Kenya produces flowers to the EU
        • in 2001 Kenya suffered from a server drought
          • the government directed water supplies to the flower fields
    • the western world
      • we want cheap coffee so we import coffee beans from places such an Tanzanian
        • the coffee farmers produces £84  year which is not enough to live on
          • if he was to ground the coffee beans he would be making a product and could charge more
            • we would not buy this product because it would be more expensive as higher importing tax
          • if the farmer cut down his coffee plants and became a subsistence farmer he would be thrown into jail
            • government needs him to export so that can tax his and increase tax revenue
      • encouraged lots of LEDC's to produce cotton eg Egypt and countries In Africa
        • larger supply than demand so reduced prices
  • GDP was reduced by 25%
    • Zambia
    • smaller demand for copper when wiring was replaced by fibre-optic cables

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