Gordon Brown.docx

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1. Gordon Brown's plans for helping reduce poverty and boosting economic development:

Debt Relief Wiped 80m of Mozambique debt Plans to for similar deals for 70 other developing countries Britain has promised to pay 10% of the foreign debt bill of the entire developing world under what Mr Brown has dubbed a new Marshall plan Which will cost Britain 1bn, developing countries must promise to spend the money they save on education, health and welfare.

Education of Children (50bn)

2. The process by which the plans Mr Brown outlined would be expected to lead to economic development

The debt relief will reduce their interest and increase the amount of money the country has to develop education and hospitals as it would mean their budget would be bigger and help grow economic development in the country, as it has 1 billion in which it can use to build hospitals and schools which will enable a more productive work force as they wont be ill as often and will have an education which will allow better jobs than just agriculture where there are no skills required.

3. Part of Mr Brown's plans were to persuade other countries to follow Britain's lead - to what extent is this important in having any lasting effect on the potential for economic development in developing countries?

By incorporating other developed countries into the deal it will allow for a fairer trade system and those countries in the deal will feel obliged to help the developing countries and allow them to develop more easily as there will be no trade restrictions or dumping into the country and will allow the developing countries to raise above their poverty and become a major player in the global economic market, i.e. China, Brazil, Russia and India, where all in poverty and not developed and have become part of the global economy.

4. Is anyone development strategy to be preferred over another in helping to reduce poverty and boost economic development?

By investing in education it helps prepare the country for long term development in which they can slowly repay the debt and afterwards have a country that can actually compete in the global market rather than wiping the debt where they are back to where they started and will probably get back into debt. In my opinion it would be better to freeze the debt instead of wiping it and use the money that used in wiping debt to help develop the country by investing in education and medicine which means they will be able to develop.

5. If all developed countries had cancelled their debts from African countries, to what extent would this have helped solve the problem of poverty and improve economic development?

Invest in savings in education and healthcare, improves living standards and helps reduce poverty.

If the government is corrupt they may not learn from original debt and continue to borrow, even though the money is not reducing the poverty problem as resources are misallocated.