Best way to display parent child relationship in simple hierarchy

I have been given the following screen grab to comment on:

I don't think there's an awful lot you can say aside from that the colors are wrong, because they imply that one is clickable while the other isn't (both are), and the arrows just look a little messy. Aside from that, I don't really know what to add.

How can I redesign this layout so the parent child relationships are more obvious?