4.3 - Factors Influencing Development Flashcards
How does primary dependency influence development?
Economic inflexibility
Reliance on primary + secondary sectors
Small investment capacity
How does commodity price volatility influence development?
Vulnerability to supply shocks
Nations without comparative or competitive advantage suffer
How does the savings gap influence development?
Can’t generate sufficient investment funds
Reliance on aid + borrowing
What is the savings gap?
Difference between real investment + amount required to achieve sufficient growth
How does a lack of foreign currency influence development?
Rising import prices
Debt repayments
Capital flight
How does capital flight influence development?
Rapid outflows of money/funds
Harms investment prospects
Associated with weak monetary policy
How does geography influence development?
Accessibility
Resource deposits
Ability to provide infrastructure
How does infrastructure influence development?
Productivity implications
Skills
Accelerator
How do education/skills influence development?
Qualifications
Skilled labour
National output
Diversified economy
How does political stability influence development?
Corruption
Long term prospects
Handling + distribution of finance
Strength of democracy
Which other factors can influence development?
Demographics
Property Rights
Employment
Debt
Which 8 main factors affect development?
Primary Dependency
Savings Gap
Commodity Price Volatility
Capital Flight
Political Stability
Geography
Education/Skills
Infrastructure
