Factors that cause Variation in Development and Hinder Development
- Created by: Pass my Exams
- Created on: 07-04-18 18:41
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- Factors that cause Variation in Development and Hinder Development
- Historical Reasons
- Colonialism is when many Western European countries took over the running of areas of land worldwide and took resources and wealth from the 16th Century onwards
- The benefits of colonialism for LEDCs is that it provided raw materials which allowed the colonising country to develop their industry and become richer
- Environmental Factors
- Natural hazards can have both positive and negative impacts for economic development as disasters make it difficult for countries to expand economically, but floods can bring rich sediments and volcanic areas also very fertile
- They affect LEDCs economic development severely as they are les prepared and lack finance to reduce the effects
- Diseases can impact LEDCs economic development as they thrive on tropical climates which is where many LEDCs are located. Malaria is a massive problem in African-illness restricts how effectively someone can work
- LEDCs face environmental threats which affect economic development such as mining, forestry and tourism create risks e.g deforestation earns a lot of money for a country but trees removed which makes land vulnerable for desertification and land left behind may have little agriculture value
- Dependence on Primary Activities
- The employment structure in MEDCs is there is a High % in the Tertiary Sector (providing a service) and a Low % in the Primary Sector (extractive industry)
- The employment structure of most LEDCs is a Low % in Tertiary Sector and a High % in the primary industy (countries depend on it for wealth are progressing. Zambia - 98% copper export earnings
- In Gambia, prices paid for primary products are never steady, they vary massively from year to year. Prices paid for primary products produces like cotton and copper vary enormously from year to year. Zambia depends on its exports of copper for 98% of its export earnings
- The development of a country can be affected by this dependence on primary activities if they don't know earnings from year to year which makes it difficult to plan ahead.
- Also because a primary sector does not give the country services. Depending on a primary sector would cause a struggle as it is not providing a service, but its taking work from the country to provide for another country
- Debt
- Ecuador
- Soon owed more money that it had borrowed in the first place
- The poorest 49 countries have debts totalling $375 billion
- The poorest 144 countries have debts over $29 trillion
- The world's poorest country pay almost $100 million to the rich world
- Total debt continues to climb, despite to ever-increasing payments while aid is falling
- Ecuador
- 1970s: Governor of Ecuador borrowed US $3 billion from international lendres
- Government was a dictatorship
- Money was spent on military to make sure they retained power
- Ecuador has been a democracy since 1979, but the debt still needs to be payed
- Interest is charger on loan
- Owed more than they borrowed - debt is now $10 billion
- Ecuador
- Historical Reasons
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