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85 Cards in this Set

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Human Development Index
A measure of development which combines there important aspects of human well being: life expectancy, education and income. The HDI is measured on a scale from 0-1, where 1 is shows the highest level of human development and 0 shows the lowest level of human development.
Infant Mortality Rate
The number of deaths of children under the age of one per 1000 live births.

- Considered to be the most sensitive indicator of sock-economic progress.
Education in regard to socio-economic development
- One of the three key aspects of the HDI
- Quality education and female literacy are central to development. This can be explained in economic terms because education will increase productivity which will increase economic growth which is seen as a prerequisite to development. Moreover, it can also be stated that this improves one of the three aspects of HDI and thus improves HDI thus leading to development.
Trends in adult literacy rates
Lowest adult literacy rates are in Africa, excluding some middle eastern countries and the south but also in Western Asia
Adult Literacy Rate
The percentage of the adult population with basic reading and writing skills
Malnutrition
The condition that develops when the body does not get the right amount of vitamins, minerals and other nutrients it needs to maintain healthy tissues and organ function
Hunger
The condition resulting from chronic under consumption of food and/or nutritious food products. It can be short term or long term (Chronic hunger)
The Education Index
The Education Index - The Human Development Report provides an education index which has values between 0.0 and 1.0. It measures the adult literacy rate and the combined enrolment of primary and secondary education. Adult literacy rate is the proportion of the adult population aged 15 and over that can read and write a short, simple statement on their everyday life. The countries with the highest education index are Finland, Australia, New Zealand and Cuba, while the countries with the lowest education index are Afghanistan, Chad and Mali.
Gender Empowerment measure
Gender Empowerment measure - The GEM shows whether women can take an active part in economic and political life. It shows inequality in opportunities in elected areas. It tracks the percentages of women in parliament and in other positions. A perfect Gender Empowerment Measure is 1, which shows perfect equality, while the lowest Gender Empower Measure is 0, which shows perfect inequality. The country with the highest GEM is Norway which has a GEM of 0.837 while Yemen is 70th with a GEM of 0.127.
Gender Related Development Index
Gender Related Development Index - The GDI measures the achievements of women and men in the same dimensions as HDI, however, it examines the inequalities of these dimensions in regard to women and men.
Global Variations in Hunger
Global Variations in Hunger - Overall there are 815 million hungry people living in developing countries. Up to 10 million people die of hunger every year. The highest amount of people living in hunger live in India (221.1 Million), SSA (203.5 Million), and China (142.1 Million). Three quarters of all hungry people live in rural areas , which is caused by the fact that these people are dependent on local agriculture as they do not have access to alternate sources of food. If supply shocks occur and crop shortages occur, they do not have enough food to meet their dietary requirements and they must therefore live in hunger.
Marginalization
The process of being pushed to the edge of economic activity, of being largely left out of positive economic trends
GDP
The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis.
GNI
The sum of a nation’s gross domestic product (GDP) plus net income received from overseas. Gross national income (GNI) is defined as the sum of value added by all producers who are residents in a nation, plus any product taxes (minus subsidies) not included in output, plus income received from abroad such as employee compensation and property income.
GNI per Capita
When the GNI of a country is divided by the total population of people living in that country
GNI at PPP
The GNI of a country converted to US dollars on the basis of how the value of currency compares with that of other countries
Newly Industrialised Countries
Countries that have undergone rapid and successful industrialisation since the 1960's
Current NICs
South Korea, Singapore, Taiwan, Hong Kong (Four Asian Tigers)
Reasons and incentives which have allowed current NICs to develop rapidly since 1960
- Good initial level of infrastructure
- Skilled bu low cost workforce
- Cultural Traditions that revere education and achievements
- Government welcoming foreign direct investments
- Geographical location advantages
- Availability of bank loans
The Development gap
The difference in income and quality of life in general between the richest and the poorest countries in the world
Reasons for disparities in development - Physical factors
- Landlocked countries generally develop faster than those at coastlines
- Small islands have disadvantages
- Tropical countries have grown more slowly than others
- Natural resources have the ability to speed up economic growth
Reasons for disparities in development -Economic policies
- Open economies that welcome and encourage foreign investments
- High rates of saving and low spending relative to GDP
- Institutional quality in terms of good government, law and order and lack of corruption generally result in a high rate of growth
Reasons for disparities in development - Demography
- Progress through demographic transition is a significant factor, with the highest rates of growth experienced by those nations where the birth rate has fallen the most
Consequences of the development gap - Economic
- Global integration is spatially selective as some countries benefit and others don't
- 30% of the worlds population live on less than a dollar a day almost half on less than 2 dollars a day
- Poor countries frequently lack the money to pay for food, agricultural innovation, and investment in rural development
Consequences of the development gap - Social Consequences
- More than 850 million people in poor countries cannot read or write
- Nearly 1 Billion people don't have access to clean water and 2.4 Billion people to basic sanitation
- 11 million children under 5 die from preventable disease each year
- Many poor countries do not have the ability to combat the effects of HIV/AIDS
Consequences of the development gap - Environmental consequences
- LDCs have an increased vulnerability to natural disasters
LDCs lack the capacity to adapt to droughts and other natural events induced by climate change
Poor farming practices lead to environmental degradation
Often, raw materials are exploited with very limited economic benefit to poor countries and little concern for the environment
Landscapes are devastated by mining, vast areas of rainforest felled for logging and clearance for agriculture, and rivers and land polluted by oil exploitation
Consequences of the development gap - Political Consequences
LDCs often have non-democratic governments or are poorly functioning democracies. These is usually a strong link between development and improvement in the quality of government.
Origin of the development Gap - Ethnicity
- Differences in ethnicity can sometimes lead to the discrimination of the minority group. This results in discrimination limiting economic, social and political opportunities.
Case Study: Ethnic Disparities Bolivia
Bolivia's indigenous population which accounts for 2/3 of its population has always endured lower qualities of life than people of spanish descent. However, participative democracy has allowed its indigenous people to be sophisticatedly organised staging successful protests against the privatisation of water and gas, which raised prices significantly. Its indigenous population has been susceptible for various reasons:

- Lack of economic opportunities in rural areas
- Heavy reliance on the informal sector
- Lack of access to land as this is owned by major corporations
- Continued discrimination
Cumulative Causation
The economic principle that multiple changes are set in motion by a single event. The causation might be "forward" if the effects are positive, as in the case of the location of a new business generating more jobs, more investment opportunities, and a greater tax base for a community. The causation would be "backward" if a business closed, thereby creating the reverse effects of the opening of a new business. The chain reaction associated with cumulative causation is said to be created by the multiplier effect.
Core Region
The most highly developed region in a country with advanced systems of infrastructure and high levels of investment resulting in high average income
Periphery
A part of a country outside of the economic core region, the level of economic development in peripheries is significantly below that of the core
Urbanisation of poverty
Urbanisation of poverty is the gradual shift of global poverty from rural to urban areas with increasing urbanisation
Slums
Heavily populated urban areas characterised by substandard housing and squalor.
- 32% of the worlds urban population are housed in slums. Without significant global action the number of slum dwellers will double over the next 30 years. Slums result from a combination of poverty and low incomes.
Access to education as a cause of the development gap
- Those with better education can get higher paying jobs and thereby gain better and more stable employment
- In developing countries there is a clear link between education an family size
Gini coefficient
A statistical technique used to show the event of income inequality in a country. With values between 0 and 1, a low value indicates a more equal income distribution and a higher value indicates more unequal income distribution.
The Lorenz Curve
A graphical technique used to show the degree of inequality that exists between two variables
Chinese income gap between urban residents and rural farmers
- The ration between the affluent urban population and the rural population is 2.6 to 1
- Many rural people feel left behind in china's economic boom
- This is not only causing politically tension but also national economic concern as falling purchasing power in rural areas hinders efforts to boost domestic consumer spending
Land Ownership as a cause of the development gap
- Land ownership provides a sense of security as it provides an economic asset which is worth money and thus provides the household with a last resource if it runs out of liquid monetary assets
Land Ownership in Brazil
- The distribution of land ownership in Brazil has been an issue since the colonial era as it is very concentrated for very few affluent people.
- 44% of arable land is owned by 1% of Brazils farmers while 15 million people own little or no land
- These landless people are impoverished roving migrants who have lost their jobs as agricultural labourers due to mechanisation
- A partial solution to this issue is land reform which involves breaking up large estates and redistributing land to the rural landless. Progress has been limited due to the economic and political power of the large farm owners using aggressive tactics to evict squatters and delay expropriation.
Life Expectancy at Birth
The average number of years a newborn baby is expected to live if the age specific morality rates effective at the year of birth apply throughout their lifetime
Trends in LEB
- In 1900 the world average LEB was 30 years, by 1950 the world LEB had risen to 46 and by 1980 the LEB had risen to 60 years
- Current world average is 69 years
- Difference between MEDCs and LEDCs is 10 years
- In MEDCs the male-femlae gap is 7 years
- In LEDCs the male-female gap is 3 years
- Countries with the highest LEB - Japan, Switzerland, Italy, Hong Kong and Macao
- Countries with the lowest LEB - Lesotho, Zimbabwe, Mozambique, Zambia, Afghanistan
Patterns LEB
Rates of LEB have converged significantly between rich an poor countries despite the widening of the health gap. Increases in LEB have to a certain extent offset the widening disparity between per capita incomes between developing countries and less developed countries. United Nations projections show that the LEB gap between rich an poor countries is likely to narrow in the future. According to the WHO, LEB rose by 25% in the poorest 50% of countries, while it only rose by 9% in the richest 50% of countries
Influences on life expectancy
- The incidence of diseases; big killing diseases in developing countries (Cholera, Malaria)
- Physical environment conditions: natural hazards
- Human environmental conditions; quality of housing, atmospheric pollution, road traffic, work conditions
- Personal lifestyle; smoking, alcohol consumption, diet and exercise
Income: Patterns and Trends
- Global GDP per capita widened between 1950 and 1970
- Global GDP per capita narrowed between 1970 and 2005
- It is important to be noted that the convergence in the post 1970's was driven in particular by the increasingy strong performance of Asian economies and more recently by the booming of economies of China and India.
- Four sub divisions of Africa had the slowest growth rates
- Population growth is outpacing economic growth
- Incomes in the poorest countries of the world declined by 5% during the 1990's
Education Patterns and Trends
- On a global scale education has become more equal since the 1980's
- SSA and SEA have continuously been at the bottom of the education index since 1960, however, they have made moderate improvements to their education in the past years
- Substantial gap between high income and low income countries still exists
- Low income countries devote almost half of they total education spending on primary education where as MEDCs devote a much larger portion of their spending to secondary and tertiary education
- Although the education gap between males and females has narrowed in most countries, the gap still exists
- The global percentage of people enrolled in tertiary education has risen from 19% in 2000 to 26% in 2007
Gender gap in education
Considers girls school enrolment in relation to boys (girls per 100 boys)
Extreme Poverty
The most severe state of poverty with an inability to meet basic needs. It is now defined as living on less than 1.25 dollars a day.
Maternal Mortality Rate
The annual number of deaths of women from pregnancy related causes per 100,000 live births
Theories used to explain the development gap - Modernisation theory
A deterministic approach based on the economic history of a number of developed countries. Distincteconomic and social changes are required for a country to move from one stage to another. The crucial part of Rostows model is the take off stage when economies and societies are transformed in such a way that thereafter a steady rate of economic growth can be sustained. Stages of Rostow's model:
1 - Traditional society constituted of bartering and agriculture
2 - Transitional Stage - Increased specialisation in terms of products and increased investment in infrastructure
3 - Take Off - Industrialisation, growing investment, regional growth, political change
4 - Drive to maturity - diversification of output, innovation, less reliance on imports, investment
5 - High mass consumption - consumer oriented, durable goods, service sector
Theories used to explain the development gap - World Systems Theory
Based on the history of the capitalist world economy. It attempts to show global inequality. Countries fall into three economic levels and can move from one level to another if their contribution to the world economy changes. A small number of core countries transformed a much larger external area into a periphery, a semi-periphery developed between the core and the periphery. within the world system a division of labor operated; the core countries were main manufacturers where the peripheral countries were agricultural and other raw material producers. Terms of trade were heavily skewed in favour of the core.
Dependency Theory
Blames the relative underdevelopment of the developing world on exploitation by the developed world, first through colonialism and then by the various elements of neo-colonialism. Poverty in the developing world rose through the spread of capitalism and many countries had been prosperous before the arrival of European colonies. The development of the rich world was achieved by exploiting the raw materials of the developing world. The stronger the links to the developed world, the worse the level of development.
Trade and market access as a way of reducing disparities
- Investment in a country allows the rate of employment to increase
- Increases the quality of infrastructure which can lead to increased opportunities for businesses
- Higher average incomes due to increased money supply in the economy which will have a positive effect on the entire economy
- Gives firms a monetary stimulus which can allow them to expand and increase the GDP of the country
- Allows the country to provide the basic necessities to its people thus stimulating development and providing a solid basis for economic growth.
Terms of Trade
The price of a poor countries exports relative to the price of its imports and the changes that take place over time
Trade deficit
When the value of a countries exports is less than the value of its imports
Fair Trade
When producers of food and some non food products in developing countries receive a fair price and deal when selling their products
Regional Trade Agreements
- In 1990 there were fewer than 25, but by 1998 there were more than 90
- The nations in a trade agreement enjoy preferential trade terms over non-participants
Debt Relief
Debt relief allows LDCs to devote their resources more efficiently and open world markets to exports from LDCs
Foreign Aid
- Allows countries to receive foreign currency which is traded as forex and thus allows them to buy machinery
- Gives firms and households the money needed in order to buy capital to increase output
Patterns in Aid
- The amount of aid given from MEDCs to LEDCs has risen from 40Billion in 1960 to 120Billion in 2008. Aid as a percentage of the rich countries GDP has declined. Aid was nearly 5% of GNI in 1960, but is only 0.3% of GNI now.
Who gives aid?
Main contributors absolute - USA, UK, Germany, Japan
Main contributors % of GNI - Sweden Norway, Luxembourg, Denmark, Netherlands
Positives/ Negatives of Aid
Positives
- Emergency aid in times of disaster saves lives.
- Aid helps rebuild livelihoods and housing after a disaster.
- Provision of medical training, medicines and equipment can improve health and standards of living.
- Encouraging aid industrial development can create jobs and improve transport infrastructure.
- Aid can support countries in developing their natural resources and power supplies.
Negatives
- Aid can increase the dependency of LEDCs on donor countries. Sometimes aid is not a gift, but a loan, and poor countries may struggle to repay.
- Aid may not reach the people who need it most. Corruption may lead to local politicians using aid for their own means or for political gain.
- Sometimes projects do not benefit smaller farmers and projects are often large scale.
- It may be a condition of the investment that the projects are run by foreign companies or that a proportion of the resources or profits will be sent abroad.
Limitations of GDP as a measure of development
- Can hide inequalities as it does not show the distribution of wealth.
- Does not take into account subsistence or informal economies which are very important in less developed countries.
- GDP over estimates wellbeing as it adds clearly negative behaviours and transactions as net positives for GDP
- GDP overestimates wellbeing as it under reports the loss of natural resources due to increases in output
- GDP underestimates well being as it does not state that people are living longer
- GDP underestimates wellbeing as unpaid output is not counted (Volunteers)
- GDP adds market transactions regardless of the quality of output
- The composition of output is a mystery
- GDP as commonly reported in the news does not account for purchasing power parity
Reasons to use GNI vs GDP
GNI is now used rather than GDP because of the growing significance of remittances in the global economy and also the importance of international aid payments.
Limitations of HDI
- The HDI notably fails to take account of qualitative factors, such as cultural identity and political freedoms (human security, gender opportunities and human rights for example).
- The GNP per capita figure – and consequently the HDI figure – takes no account of income distribution. If income is unevenly distributed, then the GNP per capita will actually be an inaccurate measure of the monetary well-being of the people. Inequitable development is not human development.•PPP values change quickly and are likely to be inaccurate or misleading
Problems and Limitations of Development Indicators
Countrywide statistics disguise intra-country variations. For example if you look at the map below, the east of China is a lot richer than the west, but if you looked at China's overall GDP you would not know this.
In many countries data is inaccurate or incomplete. Some countries also refuse to release certain pieces of information or data.
Most development indicators (with the exception of HDI) focus on only one aspect of development.
Most indicators use averages and tend to neglect or highlight the sectors of the population that are marginalised.
Indicators are always out of date. Once information has been collected, analysed, presented and published a lot of things can have changed either for the better or worse.
Development indicators can be manipulated, used or ignored to suit peoples needs. One indicator may suggest an area is developed while another may suggest an area is undeveloped.
The Brandt Line
The Brandt line is am imaginary line that a German politician drew across the World in the 1970's. He basically said that there was a north/south divide. He believed that the north was richer and the south was poorer.

Although the line might have been partially true in the 1970's when communism was at its strongest, many things have since changed. Communism has collapsed and many countries of the former USSR (north of the line) are considered to be relatively poor e.g. Belarus, Uzbekistan and Turkmenistan. Other countries like Greece, Portugal and Ireland also north of the line are suffering from massive debt crises.

On the other hand there are many countries south of the line that have experienced rapid development. The BRICS countries of China, India, Brazil and South Africa are all south of the line. Other countries like South Korea, Singapore, Argentina and Chile have also experienced impressive growth and have per capita GDP higher than many countries north of the line.
Factors Causing Disparities in Wealth - Residence
Residence: Where you live can be very important in determining your wealth. This might mean your residence of birth e.g. Japan or Afghanistan. If your are born in Japan you are much more likely to be free from conflict, receive an education, enjoy a good diet, have a roof over your house, get a job and live comfortably. However, it might also mean your personal residence (your house). If you live in a solid house that protects you from the weather and if you have a water and electricity supply then you are more likely to remain fit and healthy, be able to work and be relatively well-off. However, if you live in an informal settlement e.g. a favela in Rio, then you are unlikely to have a reliable electricity supply, or running water, or an inside toilet with sewers, or rubbish collections, or a secure structure or even legal ownership of the land or house. Therefore, you are more likely to suffer from ill health, be affected by natural disasters and risk eviction at anytime.
Factors Causing Disparities in Wealth - Diet
Diet: If people are undernourished or suffer malnutrition they are more likely to become weak and sick. If they are sick and there is no government welfare then they are unable to earn money and becoming poorer. Many LEDCs, especially in areas like the Sahel (south of the Sahara) see large scale undernourishment (famine) and poverty. The elimination of hunger and poverty are both Millennium Development Goals.
Factors Causing Disparities in Wealth - Resources
If a country is resource rich then they are able to earn money through exports. The Gulf countries of Bahrain, Qatar, UAE and Kuwait are good examples who have manged rapid economic growth because of their natural resources (oil and gas). Other countries like Syria and Jordan who have less resources find it hard to develop.
Problems Caused by Debt
- Reduced investment in essential services like schools and hospitals
- Reduced investment in infrastructure projects like roads, ports and airports
- High levels of unemployment
- Increased taxation on individuals and companies to pay debt
- Increased reliance on aid
- Imposed reform in order to get debt e.g. former SAPs - imposed by IMF
- Possible default
- Problems of raising future capital (poor credit rating)
Origins of Debt
The discovery of oil and rise in oil prices in the 1970's meant many OPEC countries had huge reserves
OPEC countries invested many of their reserves in western banks
At the time low interest rates meant that poor countries were encouraged to take large loans from western banks
Dictators of many poor countries took the borrowed the money themselves rather than investing it in their countries
Rising interest rates meant that loan repayments increased
Many currencies of LEDCs also fell in value making repayments more expensive
Lack of previous investment in the economy meant that the countries were generating very little income
BENEFITS OF FREE TRADE
- Companies will become more competitive and should actually lower prices
- Infrastructure like roads and ports are improved for the whole country
- Gives local companies a chance to become global companies (TNC) e.g. Pollo Campero
- Jobs are created for local workers
- Mexico has increased its exports since joining NAFTA
- Countries who participate in free trade grow faster
BENEFITS OF PROTECTIONISM
Fill Out
HIPC
The Heavily Indebted Poor Countries (HIPC) are poor countries with high levels of debt and poverty. As can be seen from the map the majority of these countries are located in Africa, with a few in SE Asia and Latin America. The HIPC programme was initiated by the IMF and World Bank in 1996 after extensive campaigning from NGOs. Countries were only admitted to the programme if they could prove that there debt was unsustainable. The majority of the debt relief is coming from the IMF and World Bank.
Emergency aid
Emergency aid: Help that is given to a country that is suffering from a natural disaster or conflict. Emergency aid may include food, water, tents, clothing or even rescue teams to look for victims of natural disasters.
Development aid
Development aid: Aid that is given to benefit the country. This might be money given to build a new road or port to improve infrastructure or money given to build a new hospital or school to benefit the people of a country.
Advantages of Trade
- Increased trade can create domestic jobs which increases tax revenue and reduces welfare costs.
- A free trade economy may attract foreign direct investment (FDI) which can create new jobs, improve infrastructure, etc.
- Trade ensures that countries don't become dependent on other countries or tied to other countries policies.
- Trade is a long-term solution that creates jobs, income, investment and training for the foreseeable future where aid tends to be short term fixes.
- Trade allows countries to compete on an equal footing with other countries around the world. Instead of being dependent on others, they are actually contributing to the global market. This increases countries and individuals self-esteem.
- It allows countries to buy and access products that they don't have themselves or are unable to produce themselves.
- Trade can improve relations between foreign powers.
Advantages of Aid
- After a natural disaster, food and medical aid can be vital in saving lives and can not always be provided by the affected government.
- Aid can help build expensive infrastructure products that wouldn't normally be built e.g. new roads, ports, irrigation projects or HEP stations.
- Can help build schools and hospitals that improve the health and education of local populations.
- Many aid agencies employ local workers to carry out projects. This not only creates employment but teaches local new skills. This is especially true of bottom-up aid where locals are fully involved and make all key decisions.
- Many charities provide education about hygiene, diet and health. These schemes are not creating dependency, because they are not necessarily giving money, but do improve the well-being of societies.
Disadvantages of Trade
- Many countries have protectionist policies which make it hard to compete.
- Many LEDCs trade in low value primary products which may cause them to build up a large trade deficit.
- Some countries lack raw materials so find it hard to trade without importing large quantities of raw materials.
- Emerging markets may be flooded with cheap foreign imports, destroying local businesses.
- TNCs can move into new emerging markets and exploit resources and workers.
- TNCs can destroy local culture by flooding the market with foreign products e.g. Starbucks and McDonald's
During periods of economic downturn TNCs will leave foreign countries first often creating unemployment and leaving shortages of products.
- If the balance of trade (imports and exports) is uneven then a large deficit may develop. Also countries may be effectively blackmailed when the exchange is uneven e.g. Russia can blackmail the Ukraine over the supply of gas.
Disadvantages of Aid
- Aid sometimes takes the forms of loans which can lead to high levels of debt. Many African countries borrowed large amounts of money off the IMF and World Bank and now have huge debt problems.
- Countries can become dependent on money given by foreign donors instead of developing their own economy to become independent.
- Aid money does not always reach the most needy and instead is taken by corrupt officials. Some aid like medicine can also get help up by bureaucracy and actually be out of date by the time it reaches the intended recipients. Kleptocratic (corrupt) governments may also take money for themselves and not give it to the people that need it.
Top-down Development:
- Top-down Development: Development that is led by international organisations who dictate and implement policies and schemes with little local input.

- Usually large scale policies or schemes
- Usually carried out by governments or international organisations
- Work is often carried out by outside contractors
- Schemes usually have plenty of funding.
- Often quick to respond after natural disasters
- Local people are often not consulted in decision making
- Schemes are not always appropriate and not always sustainable long term because of lack of local knowledge.
Bottom-up Development:
- Bottom-up Development: Development that is run by local communities for the benefit of the community.

- Usually small scale initiatives
- Involves more local communities and local workers. - - - The schemes are usually led by the local people themselves
- Projects are often labour intensive and for the benefit of the local community e.g building a well or repairing irrigation ditches.
- Funds are very limited
- Teach local people new skills
- Schemes are appropriate and sustainable long-term.
Advantages of Remittances and Migration
- Reduces unemployment
- Reduces pressure on schools and hospitals (if migrants take children)
- Reduces pressure on infrastructure (houses, water , electricity, transport)
- Remittances go directly to friends and family so enter economy at local level
- Migrants can return with new skills (language, ICT)
- Improved relations with countries (Barack Obama recently visited El Salvador)
Disadvantages of Remittances and Migration
- Remittances fall during economic downturn. This is probably the time remittances are most needed
- It can create dependency i.e. a family relying on one or two members living abroad
- Creates family division and family pressure/conflict (the need to provide!)
- Increased dependency ratio in losing country, placing pressure on government
- Brain drain. Usually the youngest, most educated and skilled choose to leave.
- Reduces incentive of government to invest in education and job provision
- Migrants are open to extortion (family members maybe threatened for money or migrants might lose money on exchange rates/transfer fees)