Growth + Development

• What is a major issue affecting Latin America's fresh water management?

  Poor infrastructure
• How has poor infrastructure affected urbanization in Africa?

  It has slowed the rate of urbanization
• What has negatively impacted industrial and employment growth in South Africa?

  Human capital inadequacies
• What percentage of South Africa's exports does mining account for?

  Over 60%
• What is the economic impact when South Africa's mining industry is not functioning?

  It compromises foreign debt payments
• What is the average savings rate in Africa compared to middle-income countries?

  17% in Africa vs. 31% for middle-income
• What does a low savings rate in Africa lead to?

  Higher borrowing costs for investment
• How much did developing countries lose to illicit financial flows from 2001 to 2010?

  $5.86 trillion
• What happens to growth rates after an initial increase due to savings spur?

  They return to pre-transition levels
• What is the annual cost of corruption to the EU economy?

  120 billion euros
• How many lives could be saved by ending corruption, according to estimates?

  Up to 3.6 million lives
• What could the money recovered from corruption fund in sub-Saharan Africa?

  Education for 10 million children
• What is Brazil's current fertility rate trend?

  Below replacement level
• What is the expected population of Africa by 2050?

  More than double the current 1.1 billion
• What is the trend of household debt in South Korea?

  Rising at its fastest pace in seven years
• What risk does the current lending boom in developing countries pose?

  It may lead to a new debt crisis
• How does weak governance affect infrastructure development in Asia?

  It holds back infrastructure development significantly
• What was the outcome of the civil war in the Ivory Coast?

  Ended by French intervention
• How many people were displaced during the Ivory Coast civil war?

  Around one million people
• What percentage of African economies have suffered from warfare?

  Over one third
• What are the key constraints to development in Africa and Latin America?

  • Poor infrastructure
  • Human capital inadequacies
  • Primary product dependencies
  • Savings gap
  • Capital flight
  • Corruption
  • Population issues
  • Rising debt
  • Poor governance and civil war
• What is the main goal of measures that make the economy more free?

  To minimize government intervention
• What is trade liberalisation?

  • Trading without protectionist barriers
  • Increases world GDP through specialization
  • Potentially raises living standards and economic growth
• What does FDI stand for?

  Foreign Direct Investment
• What is the purpose of FDI?

  To gain lasting interest in foreign enterprises
• How does FDI benefit LEDCs?

  It provides funds for investment and development
• What are the effects of removing government subsidies?

  • Distorts price signals in the market
  • Can lead to government failure
  • May cause inefficient resource allocation
• What is a floating exchange rate system?

  Exchange rate determined by supply and demand
• What is microfinance?

  • Small loans for unbankable individuals
  • Increases incomes and reduces dependency
  • Can stimulate employment through SMEs
• Who primarily benefits from microfinance in Bangladesh?

  95% of borrowers are women
• How do microfinance loans help borrowers?

  They detach borrowers from exploitative loan sharks
• What is a potential downside of microfinance loans?

  Data on loan usage may be unreliable
• What percentage of microenterprises in Tamil Nadu were still operating?

  Less than 2%
• What is a characteristic of microfinance loans?

  They have high repayment rates
• What does privatisation involve?

  • Transfer of assets from public to private sector
  • Government sells firms to private individuals
  • Increases efficiency through profit incentives
• Why do free market economists support privatisation?

  It increases efficiency and economic welfare
• What is the impact of privatisation on government revenue?

  It raises revenue through one-off payments
• What is the purpose of government intervention in the market?

  To influence growth and development
• What are the benefits of developing human capital?

  • Improves skills base in the economy
  • Increases productivity
  • Allows use of advanced technology
  • Reduces skills shortages
  • Enhances innovation
• What has happened to primary school enrolment rates?

  Increased from about 80% to around 90%