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Table of Contents

  1. Topic pack - Development economics - introduction
  2. 4.1 Economic development (notes)
    1. Economic development - introduction
    2. Development - pause for thought
    3. Economic growth and economic development
    4. Sustainability
    5. The sources of economic growth and economic development
    6. Natural factors
    7. Importance of agriculture
    8. Externalities
    9. Case study - farming in Kenya
    10. Human factors
    11. Population
    12. Physical capital and technological factors
    13. Institutional factors
    14. The consequences of growth for Development
    15. Common characteristics of economically less developed countries
    16. Poverty cycle
    17. Diversity among economically less developed nations
    18. International development goals
    19. Millennium Development Goals
    20. Case Study - Millennium Development Goals
  3. 4.1 Economic development (questions)
  4. 4.2 Measuring Economic Development (notes)
  5. 4.2 Measuring development (questions)
  6. 4.3 The role of domestic factors in economic development (notes)
  7. 4.3 The role of domestic factors in economic development (questions)
  8. 4.4 The role of international trade (notes)
  9. 4.4 The role of international trade (questions)
  10. 4.5 The role of Foreign Direct Investment (FDI) (notes)
  11. 4.5 The role of foreign direct investment (questions)
  12. 4.6 The role of foreign aid and multilaterial development assistance (notes)
  13. 4.6 The role of foreign aid and multilateral development assistance (questions)
  14. 4.7 The role of international debt (notes)
  15. 4.7 The role of international debt (questions)
  16. 4.8 The balance between markets and intervention (notes)
  17. 4.8 The balance between markets and intervention (questions)
  18. Print View

4.1 Economic development - What is an LDC?

In this section we will look at the nature of economic growth and economic development.

Syllabus: Common characteristics of economically less developed countries

Explain, using examples, that economically less developed countries share certain common characteristics
(noting that it is dangerous to generalize as there are many exceptions in each case), including

  • low levels of GDP per capita,
  • high levels of poverty,
  • relatively large agricultural sectors,
  • large urban informal sectors and
  • high birth rates.
Explain that in some countries there may be communities caught in a poverty trap (poverty cycle) where poor
communities are unable to invest in physical, human and natural capital due to low or no savings; poverty is
therefore transmitted from generation to generation, and there is a need for (Government and/or NGO and /or Private Sector) intervention to break out of the cycle.



Syllabus: Diversity among economically less developed nations

Explain, using examples, that economically less developed countries differ enormously from each other in terms of a
variety of factors, including:

  • resource endowments,
  • climate,
  • history (colonial or otherwise),
  • political systems and
  • degree of political stability.