3.6.2 Reducing poverty
Economic growth
o The Increase in the counties national output
o Caused by increases in the quality of factors of production
Causes an outward shift in PPF
Economic development
o refers to standard of living, freedom, and life expectancy
o Indicates the quality of life for citizens
International improvement in welfare
o Africa is top recipient of Chinese aid
o Aid provides temporary assistance
o Used to reduce human capital inadequacies
o However, aid is limited by corrupt leaders
Poverty reduction policies
o FDI promotion
Flow of capital from one country to another
o Microfinance skills
Borrowing small amounts of money for lenders to finance their enterprises
Increase the incomes of those who borrow and can reduce their dependency in
primary products.
Multiplier effect from investment on loan
Detach poor from high interest
However, might not work if there is dishonesty where the money is spent
o Development of human capital
allows people to earn more
Primary school education has increased
However secondary and tertiary education enrolment is still low
o
Economic growth
o The Increase in the counties national output
o Caused by increases in the quality of factors of production
Causes an outward shift in PPF
Economic development
o refers to standard of living, freedom, and life expectancy
o Indicates the quality of life for citizens
International improvement in welfare
o Africa is top recipient of Chinese aid
o Aid provides temporary assistance
o Used to reduce human capital inadequacies
o However, aid is limited by corrupt leaders
Poverty reduction policies
o FDI promotion
Flow of capital from one country to another
o Microfinance skills
Borrowing small amounts of money for lenders to finance their enterprises
Increase the incomes of those who borrow and can reduce their dependency in
primary products.
Multiplier effect from investment on loan
Detach poor from high interest
However, might not work if there is dishonesty where the money is spent
o Development of human capital
allows people to earn more
Primary school education has increased
However secondary and tertiary education enrolment is still low
o
