Sunday, 24 July 2016

understanding the problem of poverty in Less Economically Developed Countries (LEDCs), including exploitation, debt, war, unfair trade, corruption, natural disasters, climate

•exploitation
          •many rich people may use slave / cheap labour from LEDC’s to produce their goods
          •many women may be kidnapped and forced into illegal trade, and so cannot work for
           themselves 
          •the owners are the ones who benefit from this cheap labour 

•debt
     •LEDC’s have fallen behind their repayments, and so the debt has grown
     •they must pay back in ‘hard’ currencies, so the value doesn't go down unlike soft ones
     •the value of a country’s exports goes down, making it almost impossible to recover 
     •money cannot be spent on local infrastructure, undermining the potential local economy 


•war
     •many LEDC’s were former colonies / slave areas where resources have been depleted
     •war ruins the basic materials and so it is impossible to harness the natural resources

     
•unfair trade 
     •LEDC’s have to work for MNC’s and so these companies take advantage of that, exploiting the raw materials 
     •LEDC’s don’t have the funds for secondary industry 


•corruption
          •maintains bad infrastructure, allowing a few to be rich in an unstable government  
          •rise of anti social developments
          •loss of faith in democracy


•natural disasters
          •people have become refugees in their own country 
          •completely dependant on each other for survival, meaning children can’t go to school
          •ruins their infrastructure, meaning they have to start over and destroys their land etc. so they remain poor
          •LEDC’s have bad defences, so are affected more and have to spend money repairing, instead of improving  


•climate 
          •wrong climate means natural vegetation cannot grow, so cannot produce food for money  
          •may put of people visiting their as their are no distinct advantages 
          •may be bad for building things without large investments, putting people off 
          •global warming makes it worse, causing more starvation from MEDC’s 

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