Economy and finance

1. International aid, debt and development
In a public question and answer session on the Internet in 1999, Clare Short, the Minister responsible for Britain's international development policies and activities, gave this answer to question from someone in Haraze, Zimbabwe.
Question: Are the UK and Europe tired of trying to encourage real and lasting deveplopment projects in Africa?
Answer:
_ It may surprise you to learn that there are many encouraging signs in Africa. Over the last three years, 31 Afrucan countries achieved economic growth of more than 3% per year.
_ Foreign direct investment, although still too small, has been rising. Africa's share in world trade has shown signs of recovering from its long decline. Some countries, such as Maxambique ..., have done much better than this.
_ But some 250 million people in Africa still live in deep poverty and we must do better. With other development agencies we are committed to supporting those African government which are following policies to reduce poverty and improve access to better health, education and clean water.

abject poverty is also a typical collocation
development grants are often given to poor regions. (money to help economic development)
sustainable development is the most important goal for most countries (development that does not destroy the economy/ the environment, etc)

2. Trade and cooperation
_ Free trade agreements often cause disputes between countries, especially when one country thinks the other is engaged in restrictive practice (1).
_ Occasionally, trade wars erupt, and sanctions (2) or embargoes (3) are imposed on countries, and may not be lifted for long periods.
_ On the other hand European countries closely related economically and enjoying good relations have entered into monetary union and have a single currency.

(1) the placing of unfair restrications, e.g. limiting imports.
(2) restrictions on what a country may import/export.
(3) total prohibition on importing/exporting certain goods.

3. Economic difficuties and negative practices
_ If an economy is badly affected by war, we may refer to it as a war-torn economy.
_ Econmies in a bad state are often referred to as ailing economies.

_ Devaluation/revaluation of the currency may be necessary. (reduction/increase in value against other currencies)

_ Economies may go into recession and not come out of/ emerge from recession for several years. A country may suffer from a slump in prices for its goods.
_ Fiscal measures may be used to boost the economy when it is in recession.


_ Development is important, but it should be sustainable development, not the kind that destroys the environment and social structure.
_ The government is following a policy of giving aid only where it is used to reduce poverty.
_ There have been some encouraging signs that development aid is working in many countries.
_ Millions of people still live in deep poverty.
_ The economy has recovered from its decline and is now doing well.
_ The struggle to achieve economic growth in developing countries is a constant one.
_ It is importance to encourage lasting development projects, not just short-term ones
_ The goal should be to improve access to better health and education for the poor.

_ Over a period of five years, the country incurred (got) huge debts which it could not repay (pay back).
_ Debtor countries (countries in debt) are completely at the mercy of the rich nations.
_ The burden of debt (The weight of debt) is so great in some countries that their economies are collapsing.
_ Rcher countries could do a lot to ease/ alleviate (make) the debt of poor countries and indeed, in some cases, could cancel (or write off) (forget) the debt altogether.