1. 4.3 The Role of Domestic Factors

2. Measuring Development
Education
Health
Infrastructure
Appropriate technology
Access to credit
Empowerment of women
Income Distribution

3. Education
What role does education play in development? Education leads to: More productivity - international competitiveness - import substitution - tax revenues  reinvestment in education - technology Jobs - Income - Further investment in human capital Gender equality - Assuming girls are educated

4. Education
Education leads to: FDI - tax revenue - technology transfer - expertise transfer Health outcomes - spread of disease, contraception - medical professionals BUT Money? Overcoming cultural boundaries

5. Health
What role does health play in development? Improved health outcomes lead to: More productivity - skills are retained - absenteeism Happiness - confidence Lower birth rates - more disposable income - more investment in human capital

6. Health
BUT Money? Private sector reliance?

7. Infrastructure
What role does infrastructure play in development? Investment in infrastructure leads to: Trade - ports, rail, road - lower production costs FDI - as above Health and education - schools and hospitals exist BUT Money?

8. Appropriate technology
In what ways is technology ‘inappropriate’ for LDCs? is harmful to the environment - water depletion - forest depletion needs high human capital - not available in LDCs - foreign workers needed needs highly-developed infrastructure - power/water sources

9. Appropriate technology
Solar-powered laptops Solar-powered cookers Lighting

10. Credit and micro credit
Lack of capital a huge barrier Western businesses reliant on start-up capital Entrepreneurs can flourish Saving incentive Development banks – long-term loans Banks not always bothered with low-value loans

11. Credit and micro credit
e.g. Buying a tractor

12. Credit and micro credit
Pitfalls High interest rates Risk assessment Limited reach

13. Empowerment of women
Why is this important? Education and power leads to: Improved health Improved education for families Lower birth rate Higher disposable incomes

14. Income distribution
Why should income be distributed more equally? Undue political influence - health and education outcomes Low savings potential of the poor - low investment Increased local consumption - greater disposable income