Download Economic factors that affect development

Recap
How can these factors lead to food shortages?
Corrupt Government
Natural disasters
Role of women
Free Trade
Conflict/war
environment
Causes of food shortages
Water scarcity
HIV/Aids
Disease
Factors affecting development
• Social
• Economic
• Political
Education Problems
Lesson Aims
I will learn
1. The importance of Education to the
development of a country
2. The problems that exist in Education in
African countries
Education
Education is seen as a way out of poverty
Education is an important factor in the development of a
country
•Improves food production
•Improves healthcare
•Improves the economy
No education = no doctors/teachers/engineers/
scientists/skilled workers eg electricians.
Nearly half of all Africans cannot read or write.
Education
• UK primary school enrolment 100%
• Somalia primary school enrolment can be as low as
22%
• Ethiopia 45 %
• Tanzania 82%
Gender imbalances –Females are less likely to be
educated – 2 thirds of the worlds 875 million
illiterate adults are women
A good education is regarded as the best way out
of poverty.
Primary Schooling
UN - Millennium development Goal 2 - Achieve
Universal Primary Education (by 2015)
At present approximately 40 million children in
Africa do not attend primary school.
Over 50% of all countries in Africa will not meet
this MDG.
Secondary education
Sub Sahara Africa – 20% of children are in
secondary education
Gender imbalance
Two thirds of all illiterate adults in Africa are female.
Reasons why women are less likely to go to school
•Carers
•Housework
•Role in food production
•Collect water
•Arranged marriages
•Early marriages
•In many cultures and tribes women are viewed to be inferior
to men
Improving education especially among women
would have a positive affect on various social and
economic problems.
Educated women would be more productive at
home and better paid in the workplace.
Educated women are more likely to remain
unmarried for longer and have fewer children.
When they do have children their children are
more likely to survive and will be better
nourished and better educated.
Conditions of African schools
There are not enough schools
Overcrowding (as much as 70 pupils per class)
Lack of resources (textbooks, pens/pencils)
Lack of properly trained teachers eg. In Malawi and
Namibia less than 60% of the teachers have
completed teacher training courses.
The pay and working conditions for teachers is poor
and therefore it is not a desired profession.
Somalia
Education and formal learning opportunities
are limited.
Quality and access to primary education is
very limited.
Most schools are concentrated in urban
areas and fees usually come from parents
and communities.
1,172 schools and 285,574 children enrolled
(19%) – one of the lowest enrolment rates in
the world.
.
Economic Factors affecting development
Lesson Aims
We will learn
1. What economic
development of
2. What economic
development of
factors can promote the
many African countries?
factors can hinder the
African Countries?
Land ownership and tenure
• Land and natural resources are main source of income
70% of the population earn their livelihood from the land.
Proper management of land could have a positive effect on the
economy.
Often different organisations will claim rights over the same
piece of land and in many cases there are no formal records to
show who holds the rights in certain areas.
When Africa was colonised many European farmers were assigned
pieces of land. However after independence many governments
tried to redistribute the land more evenly.
This has been problematic ……..
•In many countries the land has been redistributed unfairly.
The best pieces of land has often went to friends of
government officials.
• Thousands of white farmers were evicted in Zimbabwe.
There are now less than 300 white farmers in Zimbabwe
compared to 4,500 before the invasions began.
•This has contributed to a catastrophic collapse in the
economy as white farmers left the country taking their skills
with them.
•If land is not distributed properly it can lead to conflict,
however if it is sorted out fairly and land rights are
clearly assigned the this can promote economic
development.
•Farmers will work as a team instead of competing to
produce the same products.
•Therefore, this produces efficient and productive
agricultural practices
Women and Land Ownership.
Women are responsible for 60-80% of agricultural
production so their access to farm land is very important.
However, women are often excluded from land ownership.
Women are often excluded from training programmes and
government grants.
If men and women had equal land rights the this would
also boost the economy.
Debt
Africa owes massive amounts of money to rich
countries. Africa received billions of dollars in
aid from governments, banks and charities,
mostly in Europe and America.
Each year Africa faces $14.5 billion in debt
repayments
This money should have been spent on
development programmes but much of the
money has been lost to corrupt governments and
poor administration.
How Debt Can Cripple A Country

Zambia was once one of Africa’s richest countries.
Now it is poorer than it was in 1975!

It has one of the lowest life expectancy rates in the
world at approximately 40 years. Expected that 50%
of population will eventually die of Aids

In 2004, Zambia spent 7.35% of its GDP to repay
its debt – this is twice what it spent on education.

To meet its debts, Zambia has had to privatise its
public services and take in foreign imports.
ZAMBIA

Because of this, Zambia cannot address its
health, educational and economic needs……..
Loans can be given from country to country eg UK
(Bilateral) or from a group of countries or an organisation
like the IMF (Multi Lateral).
Countries and organisations also impose conditions onto
loans.
The World Bank and the International Monetary Fund
have been heavily criticised for the conditions on debt.
These conditions can lead to hardships for the countries
involved.
For example, the IMF can insist that education and health
programmes are cut in order to reduce government spending
and keep up debt repayments – In Ghana education and health
are no longer free.
IMF have forced some countries to privatise water supplies.
Which means that water is even less affordable and less
accessible. This has happened in Rwanda.
The IMF can also force many African countries to remove
government subsidies.
Terms of Trade
African producers do not compete on equal terms in world
markets.
The World Trade Organisation insists on free trade therefore
African governments are not allowed to subsidise farmers or
impose import taxes.
However, The USA and The EU subsidise their farmers and
also have import taxes in order to protect their agricultural
industry.
The EU subsidises its farmers through the
Common Agricultural Policy.
CAP- Policy introduced to protect farmers and
keep consumers with a constant supply of food.
Farmers are given money by the government by
the EU to grow various products.
EU farmers often produce food surpluses which
are sent to African countries. This food
undercuts local producers and puts them out of
business.
Senegal and Ghana – unwanted chicken thighs
and wings from Europe are sold at half the price
– putting local farmers out of business.
Example - Sugar
In Africa it costs £75 to produce a tonne of sugar but in
Europe the cost is around £300.
However, two things work against African sugar
producers
1. The CAP gives £550 million every year to sugar
producers bringing their cost down.
2. The EU applies huge import taxes on imported
African Sugar making it impossible for producers in
Malawi or Mozambique to compete.
Economic factors that affect development
Promoting development
Land ownership – 70% of people
make their money working on the
land – agriculture/natural
resources – good management can
boost economy
Free trade – can sell products all
over the world – cash crops Fair Trade
Hindering development
Distribution of land/corrupt
government/lack of education
Lack of infrastructure eg
roads/bridges
Cash crops
EU Subsidies/CAP/Import taxes
World Trade Organisation –
regulate trading – committed to
free and fair trade
WTO seen as rich countries club –
many countries still continue to use
subsidies and tariffs.
Exchange rates
Aid – Loans
Debt relief
HIPC
Debt (interest) – affects on health and
education
Conditions of debt eg cash crop
Economic factors that affect development
Promoting development
Land ownership – 70% of people
make their money working on the
land – agriculture/natural
resources – good management can
boost economy
Free trade – can sell products all
over the world – cash crops Fair Trade
Hindering development
Distribution of land/corrupt
government/lack of education
Lack of infrastructure eg
roads/bridges
Cash crops
EU Subsidies/CAP/Import taxes
World Trade Organisation –
regulate trading – committed to
free and fair trade
WTO seen as rich countries club –
many countries still continue to use
subsidies and tariffs.
Exchange rates
Aid – Loans
Debt relief
HIPC
Debt (interest) – affects on health and
education
Conditions of debt eg cash crop