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‘Countries At Very Low Levels Of Economic Development Face Such Huge Challenges That They Cannot Hope To Address Them Without Assistance From The Rest Of The World’. To What Extent Do You Agree With This View?

1474 words - 6 pages

‘Countries at very low levels of economic development face such huge challenges that they cannot hope to address them without assistance from the rest of the world’. To what extent do you agree with this view?

The UN classifies a country as a LDC if it meets the three criteria, low income (three year average income of less than US $750), human resource weakness and economic vulnerability (instability of imports, exports, agricultural production etc.). There are 49 LDCs in the world, 33 are in Africa, 15 in Asia and the Pacific and 1 in Latin America. The UN describes them as ‘the poorest and most economically weak of the developing countries with formidable economic, institutional and ...view middle of the document...

The problems are not just economic, they also face social problems. Social problems can include things such as education and gender equality. These problems are just as big as the economic ones.
Other problems are political ones such as unstable governments, if a government is unstable and is constantly changing leaders not much will get done to help the country prosper. Another problem with the government could be that they are corrupt, this means that they will not try to help there people but only themselves, they can do this by taking aid sent to help those in need and not distributing it correctly.
These countries also have demographic problems, this would be high infant mortality rate and low life expectancy, if a country a is having health problems causing the population to be unhealthy they are not going to have a good work force which will stop them from being able to develop. A lot of this is down to disease such as HIV/AIDS, where they do not receive the medication they need nor are they taught about it to help prevent the spreading of it in the first place.
The first approach to LDCs developing is through Aid, aid is developed countries or NGOs giving recourses to countries in need to try and help them with their issues and hopefully to help them develop. There are many different types of aid such as short term aid, long term projects, bilateral aid and many more. Aid is seen most significantly when a country has a natural disaster, such as Haiti, after the 2010 earthquake they received over US $1 billion in aid to help them rebuild their infrastructure.
There are arguments for and against trade, the case for aid is that the aid can be used in many ways e.g. economic development, humanitarian projects, social development and environmental improvement. There is a larger case against aid which is that it does not always reach who it is intended for due to corrupt governments, also the countries lack the basic infrastructure to use the aid effectively. Aid dependency may be created where it has been given for extended periods. There is also the problem of tied aid which is aid that comes with conditions, these conditions could be that the recipient has to agree the spend money on goods and services in the donors country.
Mozambique, one of the poorest countries in the world, attempted to use the dam building as a path out of poverty through the construction of the Cahora Bassa Dam. This is a good example of bilateral aid, although Mozambique now has full ownership of the dam, initially Portugal had an 82% stake and Mozambique only 18%. Mozambique also had to contract much of the work to private companies, diminishing their share of profits further. Mozambique desperately needs a boost for its development, with low HDI, high infant mortality and low life expectancy. The dam provides an important power import facility to the South African grid. It transmits 1920 MW of power from the Cahora Bassa generating station on the Zambezi...

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