Sub sharan Africa

Question 1

Current statistics

Answer 1

40% poverty rate
58% literacy rates (lowest in the world)
some of the worlds most unequal nations

Question 2

Poverty trap

Answer 2

Low income, low saving, low investment, low productivity, low income…
Investment to GDP ratios half that of Asia

Question 3

Pro or Anti aid

Answer 3

Diagram

dutch disease, delays key reforms, corrupt, not likely to be invested

Question 4

Slavery/colonial legacy

Answer 4

Nigeria/Angola/Ghana lost >7m people
Spills over into international relations today, lack of trust or co operation between ethnic groups
Only excacerbated by ethnic vs pol boundaries, Ethiopia 90+ languages 82 ethnic gorups

Europeans not there for inclusive settlemnent, merely extraction. Extreme inequality a result of predatory institutions. Institutional lock in where pol power based on ethnicity with high levels of ethnic fractionalistaion

left a recipy for civil war

Question 5

Geography

Answer 5

Soils, climate landlocked
Malaria DRC looses $12bn of prod a yr
Low ag prod repeated famines in S.Sudan, Ethiopia, West Africa

Jared Diamond

Question 6

Poor institutions

Answer 6

Dictatorship, falied states, politics of patronage. Pol activity seen merely as a way of accumulating wealth

e.g. Mobuto stole 5-15 bn in natural resource wealth from Zaire

This leads to bad policies e.g tarrifs miss out on the engine of growth, monetary profligacy, price fixing

Zimbabwe 1m inflation May 2008

All leads to lack of human and physical capital e.g. Nigeria only 2hr 45min teaching a day

Question 7

Nat Resource Curse

Answer 7

Ducth disease
props up corrupt Obiang family- politics of patronage
Insufficient diversification
Creation of rentier state- impact on politics, bribery, seperate source of fiscal income ; no transparency

Question 8

Bottom billion 4 traps

Answer 8

Conflict trap-16% chance every 5 yrs
Landlocked with bad neighbours (issues with broders drawn up) (38% of bottom billion) coastal natiosn serve the world landlocked nations serve there neighbours
bad gov trap
nat resources curse

GLOBALISATION CAN’T SAVE THEM! CAPITAL IS ACTUALLY FLEEING, ECONOMIES OF AGGLOMERTATION

Question 9

Aid (Collier)

Answer 9

Has added 1% growth, to avoid dutch disease should be swift and imported, useful to incentivise gov change, provide techincal assistance during the change period and then to reinforce change

Question 10

military intervention (Collier)

Answer 10

restore order, maintain peace, prevent coups

Somalia 93 should 300,000 Somalis die in civil waf or 18 U.S soldiers

Question 11

Laws and charters (collier)

Answer 11

Western MNC’S must stop bribing, stop hiding money

Trade polciy short term protection

Question 12

NGO’s

Answer 12

Ned to realise a lack of growth is disasterous, free trade not the enemny inertia is