‘Countries at Very Low Levels of Economic Development Face Such a Huge Challenge That They Cannot Hope to Address Them Without the Assistance from the Rest of the World’ to What Extent Do You Agree with This View?

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‘Countries at very low levels of economic development face such a huge challenge that they cannot hope to address them without the assistance from the rest of the world’ To what extent do you agree with this view? [40]

In this essay I shall try and explore if countries of low levels of economic development; LICs, can only develop if they receive aid from already developed countries; HICs. I shall be weighing up both the benefits of aid and it downfalls, as well as the possibilities presented through trade alone. Is it easier for an LIC to develop through aid or by letting itself trade its way forward?

With two thirds of the world being made up by LICs, economic growth, the increase in output of goods and services that a country produces
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LICs fail to act upon the aid in order to develop but instead many see it as a way to keep afloat. Why put the time, resources and effort into developing when you will always be bailed out by these HICs. Another problem associated with aid is the idea that an LIC can receive too much of it. As free ‘aid’ such as food and clothing comes in, LICs citizens, instead of purchasing these commodities, simply pick them up for free. This ‘dumping’ of goods leads to unemployment as markets are forced to close down due to the option of getting their produce for free instead.

With failures such as these it’s clear to see why many opted instead to trade with LICs in order to cause some sort of knock on effect. LICs are often provided with trade rather then aid due to modernization. Essentially this consists of two key elements, the first being an increase in international trade and the second being a process of intensive industrialization to help provide goods for export. In effect, the developing countries were being encouraged to use the same kind of model that Western HICs had used to develop many decades ago. These modern socialist ideas of trade and economic growth took hold and became known as neoliberalism. This concept consisted of the idea that free trade is essential for economic growth, so markets should be as open as possible. This economic
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