Extract 1: Kenya's GDP per capita (current US$) rose from about $1080 in 2010 to about $2100 in 2022. Its HDI is 0.60, ranked 146th in the world. Around a third of Kenyans live below the international poverty line. Agriculture employs more than half of the workforce; tea, coffee, cut flowers and horticulture are major exports.
Extract 2: The mobile money service M-Pesa allows people without bank accounts to send money, save and borrow by phone. Studies suggest it helped lift around 2% of Kenyan households out of poverty, especially households headed by women. Remittances from Kenyans working abroad exceed $4 billion a year.
Extract 3: Kenya's government has borrowed heavily to fund infrastructure, including a Chinese-financed railway from Mombasa to Nairobi. Public debt has risen to around 70% of GDP and interest payments take a large share of tax revenue. The IMF has supported Kenya on condition of tax rises and spending cuts.
From Paper 2: The national and global economy
6(a)5 marks
With reference to Extract 1, calculate the percentage increase in Kenya's GDP per capita from 2010 to 2022, and explain why this may overstate the improvement in living standards.
From Paper 2: The national and global economy
6(b)5 marks
Explain how the Human Development Index measures development.
From Paper 2: The national and global economy
6(d)12 marks
Discuss the problems for Kenya of relying on exports of agricultural products.
From Paper 2: The national and global economy
6(e)20 marks
Evaluate whether government-led infrastructure investment is the best strategy for promoting development in Kenya.
Score 0 / 42 · 0 of 4 marked
This paper is written by Plasmo in the style of the Edexcel A-Level Economics exam. It is not a past paper and is not produced or endorsed by the exam board.