In addition, MNCs sometimes set up business in these poorer countries to take advantage of the low wages they can pay workers. This makes the MNCs more profit.
In some developed European countries such as Ireland, farmers receive subsidies from the EU for their produce. Farmers from the developing world cannot compete with the subsidised prices in the developed world.
Subsidy:
money paid to farmers (or others) to keep prices low while guaranteeing their income.
Colonialism
During the Age of Exploration from the fifteenth to the seventeenth century, many European countries conquered lands in South America and later in Africa. The colonists exploited the raw materials and mineral wealth in the colonised countries to increase their own wealth. This stripped those countries of their natural resources and left them in a state of poverty. Since gaining independence, many former colonies still depend on their former colonisers to buy their exports. This is known as neo-colonialism.
Debt
Many developing countries owe foreign banks huge sums of money because they have borrowed money to help develop the country. This is called debt. Money that should be used to provide basic healthcare and education is often used to repay loans.
Corruption
Some developing countries have corrupt leaders. These leaders often take money intended for important services like healthcare and education and use it to increase their own personal wealth or buy weapons instead.
: Figure 20.7 A Shell oil rig in Nigeria
: Figure 20.8 Colonialism ACT VITY
What is the message of the cartoon above? Discuss in pairs.
) Figure 20.9 Corruption at the highest levels of government in developing countries can mean that very little of the aid given by wealthier countries reaches those who need it most
