* Rich countries limit and control poor countries' share of the world market by putting high taxes on imported manufactured goods. As a result, many poor countries can only afford to export raw materials, which give far lower returns than finished…
In this essay I shall try and explore if countries of low levels of economic development; LICs, can only develop if they receive aid from already developed countries; HICs. I shall be weighing up both the benefits of aid and it downfalls, as well as the possibilities presented through trade alone. Is it easier for an LIC to develop through aid or by letting itself trade its way forward?…
The history of developing countries has always been marked with poverty. The origins of scarcity may lie in the field of colonization and the exploitation of people, lands and resources by the European empire-building in the nineteenth century. As a fact, poor people had less access to health, education and other services. Therefore, the percentage of disease, ignorance and wars increased dramatically thus worsening the situation and dragging poor countries into even deeper problems. Then, with the twentieth century, rose globalization and the promise held by developed countries to help inferior countries escape poverty by elaborating strong bonds between nations and offering spiritual, economical, emotional and physical aid.…
History of developing countries has always been marked with poverty. The origins of scarcity may lie in the field of colonization and the exploitation of people, lands and resources by the European empire-building in the nineteenth century. As a fact, poor people had less access to health, education and other services. Therefore, the percentage of disease, ignorance and wars increased dramatically thus worsening the situation and dragging poor countries into even deeper problems. Then with the twentieth century rose globalization and the promise held by developed countries to help inferior countries escape poverty by elaborating strong bonds between nations and offering…
In recent decades International trade rules and practices have worked in favour of developed countries but against less developed countries, in recent years however this trend has declined and the future of trade rules and practice appears to be less discriminatory. Less developed countries (LDCs) have consistently been faced with challenging trade rules and practices. Historically LDCs had minimal influence on rules and practices that impacted upon them however LDCs have recently asserted themselves and formed strategic alliances with one-another. The main international institutions impacting upon LDCs are the World Trade Organisation (WTO), the International Monetary Fund (IMF) and the World Bank (WB), all 3 of whom have been accused of preferential treatment in favour of developed countries (DCs). DCs have also impacted upon LDCs, mainly in the areas of imposed barriers to trade such as tariffs and subsidies. The supply of aid to LDCs is discussed as are the barriers to implementation of policies and reform that LDCs face on a regular basis. Finally the trend towards bi-lateral agreements and movement towards a free market are discussed and advantages outlined.…
Aid is really effective only when it is aligned with recipients' priorities and is predictable, and donors must make sure that aid does not create unreasonable administrative demands on recipients. Low-income countries, for their part, face significant challenges when aid rises.And they have to ensure that the capacity of their public services is not overstretched. They must also make sure that aid flows do not have unintended economic effectslarge aid flows can result in an appreciation of a country's currency, making exports less competitive, or causing an increase in…
One way in which the view that poor countries will stay poor is supported is through dependency theory. Dependency theory suggests that poor countries will continue to be poor and in any event made poorer due to exploitation by the richer nations, they offshore business to poor nations in order to gain cheaper products, this culture, instead of helping nations develop, leaves them poorer than ever, as richer nations know that poorer nations depend on the income from their business, so they know that they can keep asking traders for lower prices, thus keeping poor nations dependent on richer nations, keeping them poor and underdeveloped. Dependency theorists claim that we reached this point as the richer nations were never under-developed in terms of being dominated and exploited by other stronger nations, so therefore they really have little understanding on how to treat developing/poor nations, as most of today’s poorer nations were once colonies of the richer nations, so they have little idea of what it means and what is needed in order to be an independent nation. Although dependency theory is criticised as although it says that poor nations will stay poor because of the rich nations, it does not give third world countries any guidance as to how to develop and become richer.…
Each year, Australia spends billions of dollars on providing aid to poorer countries to improve health systems, poverty, education as well as providing immediate assistance when natural disasters hit. The Australian Government's overseas aid program is improving the lives of millions of people in developing countries. The statement saying “Australia has an ethical and moral responsibility to provide aid to countries which are less well off” is debateable. The provision of aid by Australia inevitably has cultural, economic and geopolitical impacts. Whether these impacts are positive or negative for Australia to some extent depends on perspective. There are several advantages as well as disadvantages associated with Australia providing aid which can be seen as both positive and negative impacts on Australia. Advantages include that it improves regional relations and it creates future markets for our goods and services. However on the other side, disadvantages include harm to Australia’s international relations, it encourages culture of dependence and as well as other negative impacts of the developing countries.…
Whether in the form of money, training or education. One of the problems wealth nations have with providing aid is it may not get distribute to the people that really need it the most These global governments do not want an educated population for fear of the masses realizing what has been happening to them all their lives. Wealthy nations like to feel like what they are giving is making a difference, but in truth the poor do not see this money. The saying “the rich get richer while the poor get poorer” is an ominous cloud for the poor and it is starting to filter in to the middle class of society. The reality is wealthy countries do not want everyone to be on the same social or economically footing. This would disrupt the hierarchies that have been built up over the decades and the beginning of…
The world's poorest countries are at a competitive disadvantage in every sector of their economies. They have little to export. They have no capital; their land is of poor quality; they often have too many people given available work opportunities; and they are poorly educated. Free trade cannot possibly be in the interests of such nations! Discuss.…
Over the years living conditions around the world have improved, even in the poorest of countries. Despite this there is still a clear difference between high-income countries and low-income countries. High-income countries are defined as countries with very productive economic systems where the majority of people have fairly high incomes, while low-income countries are defineed as having low economic systems where most people are poor and many do not meet living standards (Macionis et al., 2005, pg 439). Even though poverty can be found all over the world citizens in low-income countries are living in absolute poverty rather than relative poverty found in high-income countries. People living in absolute poverty lack resources that are essential for life, while people in relative poverty have living resources but fall below the average income threshold for that country.…
People in the poor countries have a low educational level and low technological level because the government doesn’t have enough money to spend on the educational and technological areas. That’s why the countries with poverty have few professional laborers, high skilled workers and knowledgeable workers; thus, they have low productivity. They are not able to produce valuable products. So they cannot get away from poverty. Last but not least, they can only work on the primary industries such as farming and mining; therefore, they can only confine their production on producing low value products or some inferior goods such as crops and minerals. As the result, they have a low GDP and remain poor. For example, India is the country that suffers from poverty because of the poor finances in government. It doesn’t have sufficient amount of money to enhance its educational and technological level; consequently, it can only produce low value product and it is not able to become wealthy. In spite of the causes of poverty are so serious, it also causes many serious and lethal effects such as famine and health…
The introduction of trade could help a country out very significantly in terms of economy. Firstly, it can open barriers and allow international companies to develop business in the developing country, which would be a big benefit to them economically. If there are more companies and more jobs, there would be more employment which would help the citizens greatly because they would be able to afford the basic needs for their families too. One example can be seen through China before 1976 and China now. After the end of the relative isolation in China, the Chinese economy boomed. For one, it grew 8 times bigger. They also managed to increase economic growth by an average of over 10% in a year; exports by 15% a year in the 1980s and 90s. After many other vast improvements in China because of trade, it has risen to the world’s third largest economy in less than 40 years. Unfortunately, it is not easy to help all these countries through trade alone. Many poor countries are primary product dependent. This means that they rely on one or a small number of primary products to obtain foreign currency through export. Compared to manufactured goods and services, the world market price of thee primary products are very low. This plays a very big part in why so many nations are…
Looking at a Nation 's history can be the simplest indicator of whether it is a Rich or Poor country. It is only natural for a nation that has industrialized early to be in a relatively wealthy situation compared to nations that have industrialized later on or are still industrializing. Not only did that state have the advantage of time on their side, but due to their early industrialization they would have been able to resist resource depleting colonial activity and the issues of economic dependence that are associated with Imperialism. This is illustrated today with the wealth of the West who have embarked on colonialism and have benefitted economically from it as they monopolized markets that allowed them to sell their surplus produce to the colonies without the issues related to competition while simultaneously having access to another Nation 's resources. On the other hand, Sub-Saharan Africa today is in extreme poverty as they were arguably the biggest victims of the Imperial Era and the ‘Scramble for Africa’. Many African nations have lost plenty of valuable resources due to Historical reasons that have arguably crippled their economies, moreover, most African nations are…
Foreign aid vs. international trade is a long lasting debate as to which strategy leads to the greatest level of economic development. Foreign Aid is defined as any assistance that is given to a country not provided through normal market forces. There are numerous forms of aid, from humanitarian emergency assistance, to food aid, military assistance, etc. Development aid has long been recognized as crucial to help poor developing nations grow out of poverty. International trade is the exchange of goods or services across international borders. Economic development as defined by AmartyaSen, 1998 Nobel prize laureate, “requires the removal of major sources of unfreedom: poverty as well as tyranny, poor economic opportunities as well as systematic social deprivation.” (1)…