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In 2005, Mr. Gordon Brown's brought up a plan of action to help reduce poverty and boost economic development in Africa. The three essential elements of the 2005 development plan were to:
(a) Deliver full debt relief for the debt burdened countries;
(b) Deliver the first world trade round in history that benefits the poorest countries and ensure they have the capacity to benefit from new trade; and
(c) Increase development aid to 0.7 per cent of national income and implement a new international finance facility to offer immediate, predictable, long term aid for investment and development - build on commitments by individual governments, leverage in additional funds from the international capital markets, raise an additional $50 billions a year each year for the next ten years, effectively double aid to halve poverty.
(i) To what extent is this plan important in having any lasting effect on the potential for economic development in developing countries?
(ii) Discuss the development characteristics of poor economies.
(iii) Why do donor countries provide foreign aid?
(iv) Evaluate the strength of the Human Development Index as an accurate measure of standard of living in a country.
Identify and explain the key stages in the capital investment decision-making process and the role of investment appraisal in this process.
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