LDCs

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  • LDC's
    • The countries were outlined by the UN and of the top 50 33 are in Sub-Saharan Africa
    • Defined by the following
      • Human Resource weakeness, nutrition,health, education and literaccy
      • Low Incomes ($800GDP per capita over 3 years)
      • Economic vulnerability-- shown by signs of dependency on one industry
    • many of them suffer from widespread conflict, disease, geographical disadvantages, urbanisation and fast urban growth
    • Quality of Life
      • most of population cannot afford basic immunities
      • Resources of such countries are not evenly distributed
      • High population growth rate means that numbers living in extreme poverty increasing
      • many depend on FDI
    • Debt
      • 1970's onwards some countries found themselves in debt crisis as borrowed large amounts from developed world
      • breaking free of poverty can only ever be a vision
      • policies put in place by the IMF and World Bank to help free the HIPCs
        • provided debt relief and interest free loans
        • SAPS; Structural adjustment programmes
          • government spending cutbacks to fund debt repayments
          • 3main aims
            • Reduce government spending
            • Promote Exports
            • Encourage foreign investment
          • Some success but could make it worse due to:
            • food production failing
            • Devaluation of currency leads to dramatic rise in prices
            • Less spending on health and education by government
        • MDRI: Multi Debt Relief Initiatiev
          • aim to cancel debt of HIPCs
    • Social Problems
      • Lack of income, healthcare, education and sanitation
      • Millennium Development goals were set up to help countries out of poverty cycle
        • Millennium 8 Goals by 2015
          • Eradicate extreme poverty and hunger
          • Achieve universal primary education
          • Promote gender equality and empower women
          • Reduce child mortality
          • Improve maternal health
          • Combat HIV/AIDS and Malaria
          • Ensure environmental sustainability
          • develop global partnership for development

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