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Strategies - Influencing - Growth - and - Development - LO !!

Development strategies can be market-led like trade liberalization or interventionist like subsidies. International factors like foreign aid, debt relief, and international organizations also influence development. NGOs play important development roles at the local level.

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16 views3 pages

Strategies - Influencing - Growth - and - Development - LO !!

Development strategies can be market-led like trade liberalization or interventionist like subsidies. International factors like foreign aid, debt relief, and international organizations also influence development. NGOs play important development roles at the local level.

Uploaded by

a.palmerooni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Strategies influencing growth and development Layout

Types of development strategies


MARKET LED TRADE IMPORT The deliberate attempt to replace imported goods with
LIBERALISATIO SUBSTITUT domestically produced goods by adopting protectionist
N ION measures.
EXPORT It was argued that the best way to protect jobs and promote
LED the growth of the domestic industry was to keep foreign
GROWTH goods out.
FDI AND JOINT FDI Foreign Direct Investment through privatisation.
VENTURES JOINT One way of reducing perceived exploitation is for a
VENTURES government to insist on major investment being set up as a
joint venture.
GOVERNMENT REMOVAL Imports
SUBSIDIES OF ~
EXCHANGE FREE Market forces determine the value of the currency.-free
RATES FLOATING market.
MICROFINANC One way of reaching low-income households deepen the
E services via mobile phones
PRIVATISATION PROS The private sector is more efficient than the public sector.
A government may not have the resources from its budget
to build, However the private sector may have enough
capital and assets= resources for projects to go through.
CONS The government because the private sector will only build
infrastructure if it is profitable
INTERVENTIO EDUCATION These are strategies where the government plays a leading
NIST role, regulating and manipulating markets or bypassing
markets through direct provision of goods and services.
GOVERNMENT TARGETS Essential items, such as food and fuel, make up a
SUBSIDIES disproportionate share of spending on low-income
households. Other subsidies target agriculture and industry
in a bid to increase output and investment.
ISSUES Subsidies are poorly targeted if everyone in the
WITH population can buy the subsidized goods.
SUBSIDIES Economic theory would suggest that welfare would improve
if poor households were given cash payments rather than
subsidies
Where susbsidies are given to farmers to industry
Subsidies can easily become a significant proportion of total
government spending.
Subsidies can be a major source of corruption and
criminality
PROTECTIONIS It was argued that the best way to protect jobs and promote
M the growth of the domestic industry was to keep foreign
goods out.
EXCHANGE MANAGED The central bank controls how much foreign currency is
RATE ~ available, determining the supply, meaning that they can
determine the price.
INFRASTRUCTU Government controlling all the infrastructure development
RE
JOINT One way of reducing perceived exploitation is for a
VENTURES government to insist on major investment being set up as a
joint venture
BUFFER STOCK ADVANTA  Encourages industries to invest
SCHEMES GES
 Prevents sharp fall in prices

Consumers benefit from less price volatility.


ISSUES Minimum prices are usually set up too high.

Those funding the buffer stock must feel that it is benefiting


them substantially

High Capital is needed to set it up


DIAGRAMS

INDUSTRIALISA THE LEWIS The Lewis model, describes a dualistic economic structure in
TION MODEL developing countries. It assumes a surplus labor force in
traditional agriculture, which can be transferred to a modern
industrial sector.
PRIMARY Diversified economies require investment in education,
INDUSTRIE infrastructure, and innovation.
S
TOURISM Tourism demand is highly elastic due to discretionary
spending, making it responsive to changes in income.
FAIR TRADE ADVOCACY Provides fair income to producers, encourages sustainable
practices, and fosters community development.
CRITICISM Limited market access, higher prices for consumers, and
challenges in certification.
FOREIGN AID ARGUMEN Proponents argue for humanitarian aid
TS FOR ~ fostering global stability
promoting economic development.
TYPES OF Grants
AID Loans
Tied aid
Bilateral and multilateral aid
ISSUES Dependency syndrome.
WITH ~
Corruption and misuse of funds.

Conditionalities may undermine sovereignty.

DEBT RELIEF PROS Alleviates economic burdens.


Enables sustainable development.

CONS Moral hazard.


Potential for misuse of funds.

THE ROLE OF INTERNATIONAL FINANCIAL INSTITUTIONS AND NON-GOVERNMENT ORGANISATIONS


IMF WORLD BANK WTO NGOs
Provides Provides long- Facilitat NGOs play a vital role in development by
financial term loans for es fostering grassroots engagement, offering
stability, development global flexibility, and directly addressing community
balance of projects. trade, needs, while also advocating for social issues
payments Comprises aiming and collaborating with various stakeholders.
assistance, International for fair
and policy Bank for and
advice. Reconstructio open
n and markets
Development .
(IBRD) and
International
Development
Association
(IDA).

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