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4.3 Emerging and developing economies

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Question 24

Trade and aid in Sierra Leone

Figure 1: Official development assistance (ODA) received by Sierra Leone (current US$ per capita), 2012 to 2022

YearODA received per capita (US$)
201282
201378
2014110
2015125
201695
201788
201884
201990
202098
2021104
202280

Extract B: Development hurdles in Sierra Leone

Sierra Leone's economic recovery following domestic crises has been characterized by moderate real GDP growth, supported by agricultural expansion and mining activities. However, structural challenges persist. The economy is highly vulnerable to external shocks due to its heavy reliance on iron ore and diamond exports. While primary education enrollment rates have risen, healthcare outcomes remain weak, and infrastructure deficits are extensive. The national poverty headcount ratio remains high at around 52% overall, with rural poverty exceeding 60%. High levels of public debt limit the government's capacity to fund essential public services. Inflation has risen, depreciating the Leone and increasing the cost of imported essential goods. Income inequality remains pronounced, with the Gini coefficient remaining high at around 0.54.

With reference to the information provided, assess the likely impact on the Sierra Leonean economy of the change in aid received between 2021 and 2022.

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4.3 Emerging and developing economies Questions

  1. A Level
  2. /Economics
  3. /4.3 Emerging and developing economies