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1.

Gordon Brown's plans for helping reduce poverty and boosting


economic development:


Debt Relief
- Wiped 80m of Mozambique debt
- Plans to for similar deals for 70 other developing countries
- Britain has promised to pay 10% of the foreign debt bill of
the entire developing world under what Mr Brown has dubbed
a new Marshall plan
- Which will cost Britain 1bn, developing countries must
promise to spend the money they save on education, health
and welfare.


Education of Children (50bn)

2. The process by which the plans Mr Brown outlined would be
expected to lead to economic development

The debt relief will reduce their interest and increase the
amount of money the country has to develop education and
hospitals as it would mean their budget would be bigger and help
grow economic development in the country, as it has 1 billion in
which it can use to build hospitals and schools which will enable
a more productive work force as they wont be ill as often and
will have an education which will allow better jobs than just
agriculture where there are no skills required.

3. Part of Mr Brown's plans were to persuade other countries to
follow Britain's lead - to what extent is this important in
having any lasting effect on the potential for economic
development in developing countries?



By incorporating other developed countries into the deal it will
allow for a fairer trade system and those countries in the deal
will feel obliged to help the developing countries and allow them
to develop more easily as there will be no trade restrictions or
dumping into the country and will allow the developing countries
to raise above their poverty and become a major player in the
global economic market, i.e. China, Brazil, Russia and India,
where all in poverty and not developed and have become part of
the global economy.



4. Is anyone development strategy to be preferred over another
in helping to reduce poverty and boost economic
development?

By investing in education it helps prepare the country for long
term development in which they can slowly repay the debt and
afterwards have a country that can actually compete in the
global market rather than wiping the debt where they are back
to where they started and will probably get back into debt. In my
opinion it would be better to freeze the debt instead of wiping it
and use the money that used in wiping debt to help develop the
country by investing in education and medicine which means they
will be able to develop.


5. If all developed countries had cancelled their debts from
African countries, to what extent would this have helped solve
the problem of poverty and improve economic development?

Invest in savings in education and healthcare, improves
living standards and helps reduce poverty.

If the government is corrupt they may not learn from
original debt and continue to borrow, even though the money is
not reducing the poverty problem as resources are misallocated.