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The causes of uneven development - Coggle Diagram
The causes of uneven development
physical factors
landlocked countries
South Sudan depends on neighbours to import and export goods
South Sudan halted oil production in 2013 over a money dispute with North sudan to move it's oil through there country
This act damaged both economies and nearly brought them to war
natural resources
this is a theory that states if a country has one very valuable resource all efforts of the country are put into the exploitation of that resource
That limits the potential development of other industries and if the resource is in the hands of a minority unscrupulous ruling elite, the profits are not shared well amongst people in the country.
countries with few natural resources start off at a very low economic base and find it hard to create products that can sell on world markets.
This means the country has less money to develop infrastructure and make trade connections with other countries finding it hard to buy resources due to money and connections in the market
tropical disease
This also causes lack of work which leads to less development and more money needed to be invested into medical treatment
many tropical countries unfortunately suffer from diseases that thrive in hot humid conditions, such as Dengue Fever, Chagas Disease and Malaria.
People who get these diseases are incapacitated and cannot work or may even die, limiting development
natural hazards
global trade favours countries that are already developed
LIC's are often in debt
tariffs make trade more expensive
due to this, domestic producers aren't forced to reduce their prices from competition, and domestic consumers have to pay higher prices
They produce mainly primary products that don't make that much money
prices are volatile due to varying demand
this means that if there is a "good harvest", there will be a high supply, but because there is a high supply, there will be a drop in prices.
this means that they often have to spend their money on interest payments rather than on development.
They don't have money to grow food to be able to then grow their economy
The price of manufactured goods is steadier which means that developed countries always benefit
Increasing trade and reducing their balance of trade deficit is essential for the development of a country.
historical factors
colonised by European countries
Colonial powers used the resources of their colonies to grow their own economies
e.g the British Empire in the 1920's.
long histories of countries
The development of many LICs has been limited by events from their past, such as wars, conflicts or colonialism