Development Profiles

Question 1

What was housing like in Finalndd during the early 1990s

Answer 1

• • Early 1990s there was limited supply of rental properties (the number of rental properties fell by 11% between 1975 and 1985 ) in a highly regulated market.
• Rising costs and unable to raise prices due to rent control caused exodus of landlords from market
• Caused black market to emerge, avoiding rent control and tax, and caused tenants to pay significantly more than market value for their properties’ rent

Question 2

What was the effect abolishing rent control in 1995

Answer 2

• Rent control was abolished in 1995 causing rental supply to increase 45% in 1990-2000
• This caused black market to fall apart and prices to fall

Question 3

How did Botswana esacpe the natural resource curse

Answer 3

1. Use resources creatively; 50/50 ownership, trade deal with European Economic Committee, loan from IMF
2. Upheld civil liberties and freedom of law; lowest for corruption + instability
3. Diversify and improve human capital; 90% of citizens have ana education and 65% employed in service sector

Question 4

How much did the welath of a citizen in Botswana increase by in just 13 years

Answer 4

12,000%

However, it places high on inequality due to diamond sector being biggest growth and exporter

Question 5

How has the EU countered Chinese aid in Africa

Answer 5

150 billion of the Global Gateway funding will go to Africa

Question 6

How has Africa used aid for influence in China

Answer 6

• Involved in estimated 35 countries, ports, power plants, railways

e.g. China has estiimated to invested more than $340 billion in Africa

e.g. important infastructure such as the Railyway line from mombasa to Nairobi or the Addis Abbada - Djibouti Railway

Question 7

How much of Bangladesh’s exports are from the Garment Inudstry

Answer 7

2018: 83.49% as it has the 2nd lowest pay for production i n the world

Question 8

What are the challenges facing Bangaldesh’s continued 7% growth

Answer 8

• Severe infastructure gap - only 20% of Dhaka has a sewage system
• Low complexity of imports - limited linkages to rest of economy
• Climte Change - threatens to get rid of 30% of food production by 2050

Question 9

How is Rwanda utilising microfinance

Answer 9

initiated the Business Development Fund (BDF) which is providing guarantees and grants to accompany the ongoing financial inclusion initiatives with a deliberate effort targeting marginalised women and young girls

Question 10

What are Rwanda’s financial policies

Answer 10

• Government- supported LTSS Long term saving scheme for basic pension benefits for half population
• Authorities prmoting a cashless economy; high mobile penetration, value of e-money has increased from0 in 2011 to 34% of GDP in 2018

Question 11

What are Rwanda’s Supply-Side Policies

Answer 11

• Constructing 3 international airports; encourage trade + overcome landlockedness
• Carnegia Mellon Uniiversity Africa established in 2011 to produce creative and technically capable engineers - located in Kigali Innovation City
• Kigali Special Economic Zone to encourage manufacturing

Question 12

What has been the effect of Rwanada’s strong instiutions, deregulation, property rights been on it’s ease of doing business

Answer 12

• Only Low Incoome Country in the top 100
• 29th easiest place to do business in the world

Question 13

What has been the effect of the Kigali Special Economic Zone

Answer 13

• Creation of first phones made in Rwanda: Mara Phones in Partnership with Google
• Deal with Chinese firm Pink Mango to set up garment factory –> providing 7500 jobs and 20 million dollars in 5 years

Question 14

How has Morocco diversified its export base away from farm exports to drive growth

Answer 14

Vehicles is now the biggest single export sector
Morocco overtook South Africa as Africa’s largest car maker with 400,000 cars in 2018

Question 15

How has Morocco utilised its natural comparative advantage of benefits from 3,000 hours of sunshine per year

Answer 15

• The Noor Plant in Morocco is the world’s biggest concentrated solar power farm. It is the size of 3500 soccer fields and powers more than 1 million households.

Question 16

How is Mexico in the Middle Income Trap

Answer 16

• Growth of 2.5% over past decade not fast enough (Malaysia 6%)
• Lowest Tax Level of OECD (13%) –> social welfare spending 7% of GDP
• Under-developed financial economy (cash ermaind dominant) –> 1/3 of Adult Mexican have a bank account
• 138th/180 on Corruption
• Crime also major barrier

Question 17

How reliant is Mexico on the US

Answer 17

Gravity Theory suggest exports should be 1/3 from Mexico to USA while the acttual figure is 72%

94% of FDI flows come from the US

• Vulnerable to Protectionism of ‘the Wall’ and new Nafta

Question 18

What ddo results from PISA 2015 show for Mexico’s progress

Answer 18

Only half of 15-yearr olds obtain the necessary skills to participate effectivvely and productively in society and in the labour market - World Bank

Question 19

How reliant is Angola on oil

Answer 19

95% of exports
* Oil booms cause wide swings in economic growth e.g. 2015 oil slump caused recession –> causing Angola’s external debt to treble to over 60 percent of GDP

Question 20

How has corruption impacted Angola `

Answer 20

Jose dos Santos took over 500 million in government funds
165/181

Question 21

How has the natural resource curse impacted development in Angola

Answer 21

Angola had 1 physician per 10,000 people
Gini Coefficient of over 0.6
149th HDI ranking

Question 22

How open is Cambodia to Trade

Answer 22

Trade as a share of GDP is 125%
membership of ASEAN
FDI 11% of GDP

Question 23

How has Cambodia utilised growth for development

Answer 23

2017 Cambodia has the 8th fastest rate of HDI growth
1. reduction in poverty (47.8% in 2007 to 13.5% in 2014)
2. a fall in measured inequality (Gini from 40 in 1997 to 28 in 2012)

Question 24

How is the garment industry both beneficial and restrictive to Cambodia

Answer 24

Beneficial:
- 75% of Annual Exports and main driver of growth to ASEAN market of 750 million

Restrictive:
- Parts of Garments are foreign so restricts multiplier
- Infastructure not built around it -106th on infastructure
- Too narrow Export base

Question 25

How has Mozambique benefitted from discoveries of natural gas

Answer 25

* Increasing FDI: now 18% of GDP e.g. Anadarko investment of $22 billion; **double the size of its GDP** but has borrowed heavily with external debt reaching 100% of GDP