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Examine the role that national debt, fair trade and land ownership patterns play in the economic development of developing countries. - Leaving Cert Geography - Question 14 - 2012
Question 14
Examine the role that national debt, fair trade and land ownership patterns play in the economic development of developing countries.
Worked Solution & Example Answer:Examine the role that national debt, fair trade and land ownership patterns play in the economic development of developing countries. - Leaving Cert Geography - Question 14 - 2012
Step 1
National Debt
Answer
National debt can significantly hinder the economic development of developing countries. When a country accrues substantial debt, it often faces high interest payments that divert funds away from essential services such as education, healthcare, and infrastructure. Furthermore, excessive debt can lead to austerity measures, which may result in decreased public spending and slower economic growth. Developing nations may also face challenges in securing further loans due to their existing debt levels, limiting their ability to invest in necessary developmental projects.
Step 2
Fair Trade
Answer
Fair trade plays a crucial role in enhancing the economic stability of developing countries. By ensuring that producers receive fair compensation for their goods, fair trade initiatives can foster economic growth, reduce poverty, and improve living standards. Moreover, fair trade promotes sustainable practices, which can lead to more resilient economies. This system empowers local communities, providing them with better incomes and the opportunity to invest in education and health, ultimately contributing to long-term development.
Step 3
Land Ownership Patterns
Answer
Land ownership patterns are pivotal for economic development as they influence productivity and income distribution. In many developing countries, land is concentrated in the hands of a few, which can exacerbate inequality and limit access to resources for the majority. Ensuring equitable land ownership can lead to improved agricultural productivity, as smallholder farmers are often more motivated to invest in their land and sustainably manage their resources. These practices can drive economic growth and improve food security, thus fostering broader economic development.