Text A, Paragraph 4
Ghana has made significant strides in attracting foreign direct investment (FDI) through various economic reforms in the hope that multinational corporations (MNCs) will bring technological advancements, employment, and global expertise to all sectors.
Define the term foreign direct investment indicated in bold (Text A, Paragraph 4).
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Text A, Paragraph 1
Ghana, located in West Africa, is one of the fastest-growing economies in the region, with $72.8 billion GDP in 2021, up from $32.3 billion in 2011. The country's economy is diversified, with sectors ranging from agriculture and mining to manufacturing and services.
Table 1: Ghana statistics
Using information from (Text A, Paragraph 1), and Table 1, calculate the value of foreign aid into Ghana as a percentage of FDI net inflows into Ghana in 2021.
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Text A, Paragraph 3
The costs of doing business in Indonesia are high due to paperwork and perplexing protocols. The government has adopted policies to improve this. These policies aim to create certainty and transparency for foreign investors and to empower small businesses, which play a critical part in Indonesia’s economy. Other policies, such as obtaining loans and encouraging microfinance institutions, make it easier to gain access to credit.
Define the term microfinance indicated in bold (Text A, paragraph 3).
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Text A, Paragraph 2
Governments around the world often intervene in certain sectors to ensure that beneficial services and products are accessible to the public. These services, such as education and healthcare, are considered merit goods, which generate third party benefits to the economy.
Define the term merit goods as indicated in (Text A, Paragraph 2).
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Text C, Paragraph 2
In many countries, tax systems are designed to ensure that income is distributed more fairly. This approach, known as progressive taxation, is intended to reduce income inequality by redistributing wealth.
Define the term progressive taxation as indicated in (Text C, Paragraph 2).
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Text C, Paragraph 3
Countries around the world, particularly in developing regions, have been focusing on improving basic facilities to support economic growth. These improvements include large-scale infrastructure projects, which are considered vital for connecting rural areas with urban centres and improving access to markets. Governments and international agencies have committed significant funds to these projects to stimulate economic development.
Define the term infrastructure projects as indicated in (Text C, Paragraph 3).
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Text E, Paragraph 3
In recent years, there has been a push for changes in the way governments operate, particularly in developing countries. These reforms aim to instigate institutional change so that development benefits are distributed more equitably across society.
Define the term institutional change as indicated in bold (Text E, Paragraph 3).
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Extract A, Paragraph 3
Indonesia has made substantial investments in providing free primary education to improve literacy rates and break the cycle of poverty. However, certain rural areas still suffer from a shortage of teachers and inadequate school facilities, which hampers the effectiveness of the program. These issues have raised concerns about the extent to which the benefits of free education can be realised.
Explain how providing free primary education can contribute to economic growth in Indonesia.
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Extract B, Paragraph 1
Vietnam has experienced rapid economic growth driven by foreign direct investment (FDI) in its manufacturing sector. However, concerns have been raised that profits are often repatriated to foreign investors, limiting the benefits for local communities. In response, the government has introduced policies encouraging joint ventures to increase local participation.
Explain how inward FDI can promote economic growth in Vietnam.
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Extract A, Paragraph 3
The Central African Republic (CAR) has been a significant recipient of humanitarian aid, especially in response to conflict and natural disasters. While aid has provided crucial food and medical supplies, critics argue it fosters dependency and does not address long-term development challenges such as infrastructure and education.
Explain how humanitarian aid can contribute to development in the Central African Republic.
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Extract B, Paragraph 2
Tanzania has benefitted from debt relief under international agreements supporting the world’s poorest nations. The government has reallocated funds previously used for debt repayments to public services like healthcare and education, enabling improvements in the economy.
Explain how debt relief can support economic development in Tanzania.
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Extract A, Paragraph 2
In Bangladesh, the expansion of microfinance institutions has enabled rural households to access small loans, often targeted at women. These loans are used to start small businesses, purchase farming equipment, or invest in education. As a result, many families have been able to improve their quality of life.
Explain how access to microfinance can help break the poverty trap in Bangladesh.
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Extract B, Paragraph 3
In Kenya, lack of secure property rights has been a major obstacle to development. Many rural farmers cannot use their land to secure loans, limiting their ability to invest in better farming techniques or diversify their income sources. The government has started issuing formal land titles to address this challenge.
Explain how secure property rights can contribute to economic development in Kenya.
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Extract A, Paragraph 2
In Ghana, the government has embraced market-orientated approaches such as trade liberalisation and privatisation to attract foreign investment. These measures have enhanced efficiency and economic growth but have also led to increasing income inequality, with wealth concentrated in urban areas while rural communities remain underdeveloped.
Question
Explain how trade liberalisation can lead to economic growth in Ghana.
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Extract B, Paragraph 1
In Brazil, the government has implemented interventionist policies such as minimum wage laws and public healthcare programs to reduce poverty and improve living standards. These measures have contributed to greater economic development, but critics argue they create fiscal pressures and inefficiencies in resource allocation.
Explain how interventionist policies can improve economic development in Brazil.
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Extract A, Paragraph 1
In Uganda, access to banking services has significantly improved, with mobile banking playing a key role in reaching remote areas. This has enabled rural households to save securely and access credit. As a result, many families have moved closer to achieving Sustainable Development Goal (SDG) 1: no poverty.
Explain how the sustainable development goal (SDG) of improved access to banking can contribute to economic development in Uganda.
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