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Summary Economic Development in Different Political Contexts: A Comparative Analysis of China, Zambia, Nigeria, and Saudi Arabia €5,99
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Summary Economic Development in Different Political Contexts: A Comparative Analysis of China, Zambia, Nigeria, and Saudi Arabia
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This document delves into the contrasting economic trajectories of four countries—China, Zambia, Nigeria, and Saudi Arabia—highlighting how their unique political frameworks and resource dependencies shape their economic outcomes. Key Topics Covered: 1. **China: A Dictatorship with Economi...

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  • 5 août 2024
  • 5
  • 2024/2025
  • Resume

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  • Geography
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Course : Geography

Theme : Development

Topic : Case Studies

In Text
China: A Dictatorship with a Thriving Economy
China is a unique case of a dictatorship with a thriving economy. Despite
being governed by a single party, the Communist Party of China, the
country has experienced rapid economic growth and has become the
world's second-largest economy after the United States. China's economy
is driven by its vast manufacturing sector, which exports more
manufactured goods than any other country in the world. The country has
also seen significant urbanization in the 2000s, with millions of people
moving from rural areas to cities in search of better job opportunities.



China's economy is fueled by its ability to produce and export raw
materials, including textiles, electronics, and machinery. The country's
high foreign direct investment (FDI) has also contributed to its economic
growth, making it an attractive destination for foreign companies looking
to invest in Asia.



Zambia: The Plenty Paradox
Zambia is a country rich in natural resources, particularly copper.
However, despite its abundance of resources, the country has struggled to
grow its economy. This is known as the "plenty paradox," where a country
has plenty of resources but is unable to develop due to various factors.



One major issue facing Zambia is transfer pricing, where multinational
corporations manipulate prices to avoid paying taxes on their profits. As a
result, there is no significant tax revenue generated from the copper
mining industry, which was privatized in the 1990s. This has left the
government with limited resources to invest in other sectors of the
economy.

, Additionally, the exploration of copper in Zambia is not regulated, leading
to issues such as child labor and unfair wages. The lack of regulation and
oversight has created an environment where companies can operate with
impunity, further exacerbating poverty and inequality in the country.



Nigeria: The Resource Curse
Nigeria is another country that is heavily dependent on natural resources,
specifically oil exports. In fact, 91% of Nigeria's economy is dependent on
oil exports. This makes the country vulnerable to fluctuations in global oil
prices, which can have devastating effects on its economy.



Nigeria's reliance on oil exports has also led to corruption and
mismanagement of resources. The government has failed to diversify the
economy, leading to a lack of development in other sectors such as
agriculture and manufacturing. This has resulted in widespread poverty
and inequality in the country.



Saudi Arabia: Diversifying an Oil-Dependent Economy
Saudi Arabia is another country rich in natural resources, particularly oil.
However, unlike Nigeria, Saudi Arabia has made efforts to diversify its
economy and reduce its dependence on oil exports. The country has
invested heavily in manufacturing industries related to crude oil
production, such as petrochemicals and fertilizers.



Saudi Arabia's decision to diversify its economy has made it more stable
and resilient in the face of global economic fluctuations. The country has
also implemented measures to reduce its dependence on oil exports,
including investing in renewable energy sources and tourism.



Overall, these four countries demonstrate different ways in which natural
resources can impact a country's economy and development. While some
countries have been able to diversify their economies and thrive despite
their dependence on natural resources, others have struggled due to
corruption, mismanagement, and lack of regulation.

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