Development Economics (Poverty, Aid, Debt)

    OCR
    GCSE

    Examination of the distinction between economic growth and economic development, focusing on the structural transformation of Less Developed Countries (LDCs). Analysis covers the measurement of development (HDI vs GDP), domestic and external barriers to growth (savings gaps, capital flight, debt), and the comparative evaluation of market-led versus interventionist strategies. Candidates must assess the efficacy of aid, trade, and debt relief in breaking the cycle of poverty.

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    Objectives
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    Exam Tips
    3
    Pitfalls
    3
    Key Terms
    4
    Mark Points

    What You Need to Demonstrate

    Key skills and knowledge for this topic

    • Award marks for explicit distinction between absolute poverty (World Bank definition) and relative poverty.
    • Credit responses that analyse the components of the Human Development Index (HDI) rather than just listing them.
    • Candidates must link aid effectiveness to specific issues like corruption, dependency, or infrastructure gaps.
    • Evaluation must weigh the benefits of MNCs (FDI, employment) against drawbacks (profit repatriation, exploitation).

    Marking Points

    Key points examiners look for in your answers

    • Award marks for explicit distinction between absolute poverty (World Bank definition) and relative poverty.
    • Credit responses that analyse the components of the Human Development Index (HDI) rather than just listing them.
    • Candidates must link aid effectiveness to specific issues like corruption, dependency, or infrastructure gaps.
    • Evaluation must weigh the benefits of MNCs (FDI, employment) against drawbacks (profit repatriation, exploitation).

    Examiner Tips

    Expert advice for maximising your marks

    • 💡Use the 'Chain of Analysis' technique: Connect points using 'this leads to', 'consequently', and 'therefore'.
    • 💡When evaluating aid, explicitly contrast Bilateral vs. Multilateral or Tied vs. Untied aid.
    • 💡Allocate 1 minute per mark; ensure 12-mark evaluation questions receive at least 12-15 minutes.
    • 💡Integrate data from the case study (e.g., GDP figures, literacy rates) to secure AO2 application marks.

    Common Mistakes

    Pitfalls to avoid in your exam answers

    • Conflating Economic Growth (increase in real GDP) with Economic Development (improvement in living standards).
    • Asserting that printing money is a viable solution to government debt in LDCs without acknowledging hyperinflation risks.
    • Providing narrative descriptions of poverty without applying economic concepts like the 'Cycle of Poverty'.

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    Key Terminology

    Essential terms to know

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