3.b Sierra Leone Case Study LIDC

Question 1

Trade patterns

Answer 1

Trade deficit
Peripheral economy

Question 2

2014 service/ agriculture and services % makeup

Answer 2

Service - 30%
Agriculture - 42%
Industry - 26%

Question 3

Main export destinations

Answer 3

China / Japan / Belgium

Question 4

Main main import destination

Answer 4

China
India
Uk
Eu

Question 5

Main exports

Answer 5

Commodity dependence on primary products

Iron / titanium ore / cocoa / coffee

Question 6

Negotiations

Answer 6

Heavily dependent on aid from USA/Uk/China
Member of ECOWAS trade group - removes tarrifs
Bilateral agreements with CHina and UK
Mano river union

Question 7

Economic factors - contributing to limited access to the global market

Answer 7

• over dependence on primary products - vulnerable to price fluctuations
• limited access to finance
• inadequate infrastructure
• limited communication / technology
• high cost of production

Question 8

Environmental factors - contributing to limited access to the global market

Answer 8

• prevalent diseases - malaria / heititas / ebola outbreak
• vulnerable to changes in climate / droughts
• environmental damage from agribusinesses

Question 9

Political factors - contributing to limited access to the global market

Answer 9

• slow recovery from civil war
• political instability has impacted confidence of investors
• Inefficient bureaucracy & prevalence of corruption
• inability to control crime including illegal trade

Question 10

Social factors - contributing to limited access to the global market

Answer 10

• high unemployment 70% of under 25s
• inadequately educated 80% + not reaching secondary education
• gender inequality - limits contribution of women
• socio economic inequalities - health /poverty

Question 11

Opportunities

Answer 11

• support of bi lateral trade patterns - strengthens trade opportunities
• Chinese companies in search of iron ore are showing corporate responsibilities with developing rail / medical teams ( China investing)
• Membership of ECOWAS - abolished tarrifs increasing trade between members
• Mano river union (socio economic development programmes)
• small holder commercialisation programme - aims to provide agricultural equipment / roads to improve productivity
• political stability with 3 successful democratic elections

Question 12

Challenges

Answer 12

• reducing barriers that inhibit global value chains - limited by poor infrastructure
• broadening economic base - not reliant on primary products + need to attract investment
• managing conflict between development and environmental degradation ( mining / agribusinesses) causing soil erosion / displacement of communities / deforestation
• reducing inequalities - not enough investment in services /infrastructure
• poverty / gender inequality