The Future Global Economic Situations

A2 Geography

What are the Possibilities for the future?

• As we have seen, we may all have differing view of the future

• There is no question that we can achieve the overreaching goal of eradicating poverty – we know what to do

• But it will take a long term effort

• Recent projections put that the amount of people living on less than $1 a day will fall from 29% (1990) to 10% by 2015

• Most places are on target to achieve MDG1 except for sub Saharan Africa

• What problems would enhance or hinder the process of development

Activity

• What factors do you think would hinder or help the process of development?

Factors Affecting DevelopmentFACTORS ENCOURAGING DEVELOPMENT

FACTORS HINDERING DEVELOPMENT

MEDC’s increase international aid to the 0.7% of GDP agreed in 1970

Declining international aid

Reform of the WTO – Greater access for LEDC to benefit from trade

High food and Energy prices taking money from other investments

Reform of World Bank/IMF Adverse climate change

Wider spread of good governance across LEDCs

Deterioration in the terms of trade for LEDCs

Significant technological advances in agriculture to bring food security to more people

The existence of a number of anti-democratic and corrupt govts

Increased levels of investment in LEDC’s by TNCs

MEDCs increasing barriers to trade to protect their own industries

Reduction in barriers to migration from LEDC to MEDC

MEDCs increasing barriers to migration

The Global Economic Situations

• The future of the DG is uncertain – the recent credit crisis has brought this home

• Increases in food and energy prices have created problems in poorer countries

• How far it pushes these LEDCs in the 21st century remains to be seen.

• Pakistan was almost forced to the edge of bankruptcy due to oil prices, having only one more months of imports.

The Level of Official Development Assistance

• In 1970 it was agreed that all the rich donor countries govts promised to spend 0.7% of its GDP on international aid

• Nearly all of them have consistently failed to reach this target

Sustainable Development

• If the DG is to narrow we will need to rely on sustainable strategies

Microcredit and Social Business

• Grameen Bank – Bangladesh• has reversed conventional banking practice by

removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity. GB provides credit to the poorest of the poor in rural Bangladesh

• Women benefit from most of these loans

• Loans include things like buying a cow to sell milk

• The concept spread to 25 countries and 3.6million people.

• It’s creator Muhammad Yunus says that Social business is the next area it wants to use in its battle to fight poverty

• He argues that poverty is created by economic, social and political systems and not laziness, ignorance or moral failings

• He sees women as the driver of this change

Bibliography

• Grameen Bank