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Economics: Low Income Countries

IB Economics
by

Natasha Dangol

on 16 April 2013

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Transcript of Economics: Low Income Countries

Zimbabwe: Low Income Countries: by
Natasha Dangol
Darren Phua
Antriksh Agarwal 1. Country receiving foreign aid? Where? 2. Biggest Economic Growth? Why? 3. Area crucial for Economic growth and Development of both countries? WHY? Pakistan
HDI - 5.27
less political turmoil
more capital and infrastructure
problems with corruption Pakistan: TAX SYSTEM 2. Biggest Economic Growth? Why? Zimbabwe
HDI - 5.05
more political turmoil
land distribution
rampant inflation
infrastructure and regulatory deficiency
social unrest Zimbabwe will be receiving the foreign aid because it is extremely underdeveloped and the foreign will be focused towards their infrastructure and government deficiencies. Pakistan's economy greater government revenue
broader tax base
privatization of utilities and telecommunications
cutting tariffs
export driven policies
textile manufacturing
World Bank 2005 reports
tourism industry Zimbabwe's economy negligence of already existing infrastructure : transportation
energy blackouts
decrease in agricultural production
corruption in diamond industry
highest unemployment in the world Direct Taxes:
- Income
Indirect Taxes
- Sales Tax
- Rent Political Instability Tax System Political Instability Conflicts in the government
New constitution
General Elections Effects Extra revenue for government
Increase the standard of living
UK increase aid to Zimbabwe Effects Increase in investment
Increase in Real GDP
Increase the amount of people in the formal market
More revenue generated
Increase in the standard of living
Full transcript