levo

Option: World Sociology

Debt, structural adjustment and development policy

  • 3 things to know
  • Component 3 Section B

Overview

Debt servicing, odious debt and structural adjustment programmes.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

What is debt servicing, and why is it a burden?

Key term

What is odious debt?

Key term

What are structural adjustment programmes?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    How did the debt crisis of developing countries arise?

    Model answer

    Large loans were extended to developing countries in the 1970s, when oil revenues were being recycled through banks and interest rates were low. When interest rates rose sharply and commodity prices fell in the early 1980s, servicing the debt became unmanageable.

  2. 2

    What is debt servicing, and why is it a burden?

    Model answer

    Debt servicing is the payment of interest and repayment of principal. Debt servicing is a burden because it consumes government revenue and foreign currency that would otherwise fund health, education and infrastructure. Payment continues regardless of a country's circumstances.

  3. 3

    What is odious debt?

    Model answer

    Odious debt is the argument that some debt should not bind the successor state or the people. The debt must have been contracted by an unaccountable regime, without benefit to the population and with the lender's knowledge. The argument has been made in several cases but is not established in law.

  4. 4

    What are structural adjustment programmes?

    Model answer

    Structural adjustment programmes were conditions attached by the International Monetary Fund and World Bank to lending from the 1980s, typically requiring reduced public spending, privatisation, currency devaluation, removal of subsidies and opening to trade and investment.

  5. 5

    What was the reasoning behind structural adjustment?

    Model answer

    The reasoning was that debt problems reflected unsustainable state spending and distorted markets. Restoring the capacity to repay therefore required reducing deficits and freeing prices. Markets rather than governments were to allocate resources.

  6. 6

    What criticisms were made of structural adjustment?

    Model answer

    Critics argued that spending cuts fell on health and education, and that user fees excluded the poorest. Removal of food and fuel subsidies raised prices sharply, and devaluation raised the cost of imports. The programmes deepened poverty while often failing to restore growth.

Other ways to work this

The same content, four other ways.

What is inside Levo

Six ways to work the same material.

1Closed book
2Open book
3Closed book

The 3-step method, run for you

Answer cold, learn it, then prove it stuck. Levo tracks the jump between your first attempt and your last.

Culture and the Social Construction of Culture
Socialisation and Its Agencies
Socialisation and Identity
Option: Families and Households

Cram a whole paper in one sitting

Sort every topic into what you know and what you do not, then drill only the weak ones.

Early was often ethnocentric.
anthropologypsychologybiology

Blank Blitz makes facts automatic

Rapid timed gap-fills on the terms and numbers you need to recall without thinking.

ASecularisation has weakened religious pressure to marry.
BCohabitation is now widely accepted.
CThe cost of a wedding deters many couples.

Build It gets the exam shape right

Assemble a full-mark answer from its marking points, in the order an examiner wants them.

Mortality counts deaths in a population.
TrueFalse

Test It catches misconceptions

Spot the fault in a statement. The traps are the mistakes students actually make.

721941163128510

Brain Breaks between sessions

Short focus games to reset attention, so the next set lands better than the last.

Every question in Option: World Sociology, on a schedule.

Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.

Or £46 a year, about £3.83 a month. Cancel anytime.