COLONIALISM, A GLOBAL ECONOMY AND DEVELOPING COUNTRIES Leaving Cert question with marking scheme and sample answer


The question Explain the effects of globalisation on the economy of a developing country that you have studied.


(LC Higher Level)


The offi cial marking scheme Naming developing country


= 2 marks


Two effects identifi ed: 2 marks + 2 marks = 4 marks Examination: 12 SRPs at 2 marks each Total = 30 marks


Sample answer Uganda✓ has experienced challenges in adjusting to globalisation. Two of those challenges are outlined in this answer.


1 The challenges of unjust trading relationships As in colonial times, the economy of Uganda is heavily reliant on the export of primary products.✓ Coffee beans alone make up 20% of the total value of Uganda’s exports.✓ This high dependency on coffee exports could spell disaster for Uganda if coffee crops failed or if the price of coffee collapsed on the world market.✓ The terms of international trade are also unfair to Uganda.✓ The prices of raw primary products such as coffee are unreasonably lower than the prices of the manufactured goods imported by Uganda.✓ It is estimated that Ugandan farmers make less than 10% of the price paid in Ireland for a jar of coffee.✓ Another unfair element of world trade is that the prices of primary products such as coffee beans are allowed to fl uctuate wildly on the world market.✓ This makes it diffi cult for countries such as Uganda to forward plan their economies.✓


2 Challenges associated with debt relief Injustices in global trade helped to plunge Uganda deeper and deeper into international debt.✓ By 1987 the country had to enter into ‘rescue agreements’ with the International Monetary Fund (IMF).✓ These agreements paved the way for the IMF and Western governments to help Uganda service its international debt and to kick-start its economy.✓ They also helped to reduce infl ation and stabilise the value of the Ugandan shilling.✓ But the IMF agreements also forced Structural Adjustment Programmes (SAPs) on Uganda.✓ The SAPs demanded spending cuts on important services such as health and education.✓ They forced the Ugandan government to abandon price controls on basic goods needed by the poor.✓ The government also had to sell nearly 100 state-owned enterprises, often at knock-down prices.✓ All this made the poor majority in Uganda poorer and the rich minority richer.✓ This led to resentment among many Ugandans, which in turn has led to civil unrest.✓


30/30 39 = 24 marks


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