Text B, Paragraph 1
In regions with a history of underinvestment in human development, the workforce often faces significant limitations. Policymakers are looking for ways to improve economic outcomes by addressing what experts are calling low human capital.
Define the term low human capital as indicated in bold (Text B, Paragraph 1).
How did you do?
Did this page help you?
Text C, Paragraph 1
There have been several cases in countries like Greece and Russia where large sums of financial resources have left their economies over a short period. Governments are investigating how to manage the effects of this capital flight and prevent further economic disruptions.
Define the term capital flight as indicated in bold (Text C, Paragraph 1).
How did you do?
Did this page help you?
Text A, Paragraph 2
Nations with economies dominated by the export of raw materials face ongoing economic challenges. Experts argue that primary sector dependence makes these countries vulnerable to global market fluctuations and limits economic diversification.
Define the term primary sector dependence as indicated in bold (Text A, Paragraph 2).
How did you do?
Did this page help you?
Text C, Paragraph 2
In many countries, the physical structures necessary for economic development remain underdeveloped or nonexistent. Governments and international organisations are working to address this lack of infrastructure, which is seen as a significant obstacle to growth.
Define the term lack of infrastructure as indicated in bold (Text C, Paragraph 2).
How did you do?
Did this page help you?
Text A, Paragraph 3
Efforts to promote economic development in several regions have been hindered by ongoing issues of political corruption. These problems have diverted funds from essential projects and undermined public trust in government institutions.
Define the term political corruption as indicated in bold (Text A, Paragraph 3).
How did you do?
Did this page help you?
Text D, Paragraph 3
Many countries have struggled to grow and develop due to ongoing political instability. Uncertainty about future government policies and the frequent changes in leadership have caused both domestic and foreign investors to rethink their strategies.
State two effects of political instability as found in (Text D, Paragraph 3).
How did you do?
Did this page help you?
Text E, Paragraph 3
Many developing nations face difficulties in gaining a foothold in global trade. A variety of issues, including de-globalisation, have created a lack of access to international markets for these countries, limiting their economic potential.
Define the term lack of access to international markets as indicated in (Text E, Paragraph 3).
How did you do?
Did this page help you?
Extract A, Paragraph 2
In rural Ethiopia, surveys show that average household income is $2 per day, with 80% spent on basic necessities. Local schools report that enrolment has dropped 40% as families cannot afford education costs. Healthcare clinics note that preventable illnesses are rising as families postpone medical care. Productivity in small-scale farming remains low as farmers lack resources to invest in better equipment or techniques.
Using a poverty cycle diagram, explain how low wages can perpetuate poverty in Ethiopia.
How did you do?
Did this page help you?
Extract A, Paragraph 2
In Zambia, copper exports account for 70% of total exports, and over 90% of export earnings are from primary products. Recent market analysis shows that while global income has grown by 25% over the past decade, demand for copper has increased by only 15%. Price volatility has been extensive, with copper prices fluctuating between $6,000 and $10,000 per tonne within a single year, creating significant uncertainty in export revenues.
Explain two reasons why dependency on primary products can limit economic development.
How did you do?
Did this page help you?
Extract B, Paragraph 2
Argentina has experienced significant capital flight following recent policy changes. In the past year, an estimated $75 billion in private capital has left the country through both legal and unofficial channels. Local banks report a 35% decline in deposits, while foreign direct investment has fallen by 60%. Business owners cite economic uncertainty and changing government policies as key reasons for moving assets abroad. The government has been forced to increase borrowing from international institutions at higher interest rates to finance public spending.
Explain how capital flight creates barriers to economic development.
How did you do?
Did this page help you?
Extract A, Paragraph 2
In Indonesia, recent studies show that poor transport infrastructure increases business costs by 45% compared to regional averages. Only 60% of rural areas have reliable electricity access, while ageing ports operate with frequent delays. Despite having abundant natural resources, foreign investors consistently cite infrastructure constraints as their main reason for not expanding operations in the country. The government estimates it needs $500 billion in infrastructure investment to remain competitive with neighbouring countries.
Explain how a lack of infrastructure creates barriers to economic development.
How did you do?
Did this page help you?