Economic development

The following was published in a newspaper article. 'The economies of the poorest nations have large international debts; the richest nations should cancel the debts of these nations and reduce poverty.' What is the nature of each statement?

Oct/Nov 2025

What is the primary function of the World Bank?

Oct/Nov 2025

The United Nations provides assistance to a developing country so that it can buy vaccinations produced in India. How is this aid characterised?

Oct/Nov 2025

Which of the following is not a feature of an emerging economy?

Oct/Nov 2025

A low-income country is given aid by a high-income country. Under what circumstances will this aid provide the greatest long-term benefit to the low-income country?

Oct/Nov 2025

A multinational company is planning to invest in a new factory in a low-income country. Which of the following is not a possible benefit for the low-income country?

Oct/Nov 2025

Many low-income countries have very large shares of their people living below the World Bank’s absolute poverty line of $2.15 per day (United States dollars, 2022). One way these countries try to cut poverty is through workers moving to richer countries. These migrants send part of their earnings, called remittances, back to support their families at home. In this way, overseas workers create a link between migration and development. The amount of remittance money sent is greater than the foreign direct investment and official development aid received by middle-income and low-income countries. In 2022, total remittances received by those countries came to $650 billion, and 45% ($293 billion) was received by only five countries. Around 50% of migrants from low-income countries went to high-income countries. Migrants can see their incomes rise sharply. A nurse may earn seven times more in Australia than in the Philippines, after adjusting for purchasing power parity (PPP). Unlike official aid, remittances go straight to the recipients and provide a steady source of income. They may be used to buy extra food and can also give the recipient savings. In disadvantaged families, they may reduce child labour and allow more spending on education through higher enrolments and more years of completed schooling. Migration can lower unemployment and push wages up in home countries. It may also bring larger gains for the home country by raising the rates of return on human capital because better, more productive, and higher paying jobs are created. When migrants move to a host country with an ageing population, the average age may fall. This can increase the size of the labour force, reduce the age dependency ratio and make a positive tax contribution. Migrants increase demand for output in the host country and may use housing in less popular areas. Those with a high level of education make an even greater contribution to economic output.

Oct/Nov 2025

Evaluate whether the operation of multinational companies (MNCs) in low-income countries is always beneficial.

Oct/Nov 2025