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Contents Page:


Page 1: Revision Questions

Page 3: Case Studies

Page 9: Levels Marking Criteria

Page 10: Potential Essay Questions
Poverty & Income Inequality

   o   What is the difference between absolute & relative poverty?
   o   What does a Lorenz curve measure?
   o   Draw a Lorenz curve illustrating perfect equality
   o   What does the gini coefficient measure?
   o   How is this calculated?
   o   What factors can cause poverty?
   o   What are some of the disadvantages/limitations of using the Lorenz curve
       and gini coefficient to measure income inequality?
   o   Draw and explain the Kuznets curve


Measuring Economic Development

   o   What is the difference between first, second, and third world countries?
   o   What is GDP and GNP?
   o   What does 'per capita'mean?
   o   What is purchasing power parity?
   o   Briefly describe the Human Development Index
   o   Briefly describe the Human Poverty Index


Millennium Development Goals

   o   What are the eight Millennium Development Goals?
   o   For each one, briefly describe how it is measured
   o   For each one, research how progress is going towards reaching it
   o   Web resources available at: httn://delicious.com/sidcuneconomics
Limits to Growth & Development

Construct a table (see example below) listing all the limits to growth and
development we have discussed in lessons, For each one, consider WHY it is a
limit, note down any relevant real-world examples, and then EVALUATE why it
might not be that much of a problem really

Limits               Explanation of        Real-world           Evaluation- is this
                     why it's a limit      examples             really holding
                                                                developing
                                                                countries back?


Strategies to Promote Growth & Development

Do the same as above, only focusing on what can be done to assist developing
countries

[N.8. if you're struggling to remember the limits/strategies listed above, see the
specification on Fusion)

Looking for examples for each of the above, you have been provided with
many in the lessons, but many more can be found on the internet-
especially at www.economist.com, and in particular in the'Africa'section.


Theories of Economic Development

For each of the theories below, make the following notes:
   1,. What is it's main argument? [draw diagrams if appropriate)
   2. What are the limitations with this theory?
   3. Can you relate this to any real-world examples?
    o    Harrod-Domar Model
    o    Rostow's Stages of Devlopment
    .    DependencyTheory
    o    Lewis Model




                                    L
Development*Economics:*Linking*Case*Studies*to*Exam*Answers*
                                     *
It#will#really#help#you#in#the#Unit#4#exam#if#you#can#bring#in#some#case#studies#to#back#up#
your#argument.#To#help#you#with#this,#I#have#produced#this#sheet#which#includes#a#selection#
of#useful#examples#you#can#use#in#exam#questions#focused#on#both#the#limits#to#growth#&#
development#and#the#strategies#governments#can#use#to#promote#it.#Please#take#some#time#
to#revise#these#in#preparation#for#your#exams,#and#then#use#them#in#your#answers.#
#
Limits#to#growth#and#development#
#
Poor*infrastructure:*
#
In#terms#of#transport,#this#generally#means#a#lack#of#paved#roads,#limited#or#no#railway#
system,#limited#port/airport#facilities#making#trade#more#expensive/difficult.#
This#also#relates#to#communication#systemsD#e.g.#telephone,#internet,#mobile#phones,#etc.#
#
Explanation#case#studies:#
    D The#World#Bank#says#that#the#lack#of#inadequate#logistics#adds#15%#to#34%#to#the#
         cost#of#exports#for#Latin#American#businesses,#compared#with#about#10%#in#other#
         middleDincome#countries#(BBC#News,#2005)#
    D Investors#in#Kenya#are#reluctant#to#build#new#offices#etc.#which#rely#on#electricity#due#
         to#the#country’s#‘patchy’#electricity#service,#which#means#their#costs#increase#
         significantly#due#to#the#need#for#backup#generators#(Economist,#March#2010)#
    D China’s#latest#fiveDyear#plan,#which#started#in#April#2012,#includes#$1trn#of#
         infrastructure#spending.#China#are#also#rapidly#expanding#their#highDspeed#rail#
         network,#aiming#for#19,000#miles#of#track#in#total#(Economist,#Nov#2011)#
    D Later#on#in#2012#Brazil’s#Acu#Superport#will#be#opened,#improving#efficiency#of#
         exports#of#key#commodities#to#ChinaD#the#port#has#been#dubbed#the#‘highway#to#
         China’#(Economist,#Nov#2011)#
Evaluation#case#studies:##
    D Many#developing#countries#have#done#a#lot#to#overcome#the#problem#of#poor#
         telecommunications#infrastructure#by#skipping#‘old’#technologies#like#fixedDline#
         phone#networks#and#gone#straight#for#mobile#phones#and#fibreDoptic#cables.#In#
         Kenya,#three#fibreDoptic#cables#have#arrived#at#the#start#of#2010.#Jeffrey#Sachs#has#
         described#mobiles#phones#as#‘the#single#most#transformative#tool#for#development’.#
         In#a#muchDcited#study#in#2005,#for#example,#Leonard#Waverman#of#the#London#
         Business#School#found#that#an#extra#ten#mobile#phones#per#100#people#in#a#typical#
         developing#country#added#0.6#percentage#points#of#growth#in#GDP#per#person.#
    D Angola#is#also#following#this#strategy#of#skipping#towards#the#latest#communication#
         infrastructure#as#it#launches#a#4G#network#this#year,#way#before#much#of#Europe#
         (BBC,#May#2012)#
    D Governments#rarely#know#what’s#best#for#their#economiesD#they#tend#to#pick#
         ‘prestige’#projects#rather#than#those#which#would#generate#the#most#econonmic#
         benefit#for#the#country.#For#example,#China#invests#over#50%#of#its#GDP#and#provides#
         very#generous#loan#terms#for#‘pet’#government#projects#such#as#the#highDspeed#rail#
         network.#In#particular,#the#Shanghai#maglev#shuttle#to#the#airport#is#more#popular#as#
         a#tourist#attraction#than#as#a#method#of#public#transport#due#to#its#high#prices#and#
         failure#to#link#directly#to#‘downtown’#(Economist,#Sep#2011)#
#
#
#
#
#
#
                                          3
Human*Capital*inadequacies:#
#
Explanation#case#studies:#
   D In#South#Africa,#despite#significant#levels#of#investment,#black#children#still#lag#
       significantly#behind#their#white#counterparts#in#terms#of#educational#attainment.#
       There#are#a#number#of#reasons#behind#this,#including#poorer#quality#teaching#and#
       lack#of#facilities,#but#it#leads#on#to#problems#for#these#children#in#the#future.#
   D In#the#OECD’s#worldwide#tests#of#pupils’#abilities#in#reading,#maths#and#science,#Brazil#
       is#near#the#bottom#of#the#class.#In#schools#run#by#state#governments,#13%#of#all#
       school#days#were#lost#owing#to#absent#teachers#in#2006.#On#a#bad#day#in#bad#schools#
       in#bad#states,#teachers’#absenteeism#can#reach#30%.#
   D There#are#still#approx.#72m#children#around#the#world#not#in#education,#half#of#them#
       in#subDSaharan#Africa.#The#UN#reckons#it#would#cost#$16bn#a#year#to#get#all#these#
       children#into#school.#
Evaluation#case#studies:#
   D Despite#investments#in#improving#education#and#training#in#the#Caribbean,#the#
       country#is#still#desperately#short#of#the#skilled#medical#staff#it#desperately#needs#as#
       many#of#them#are#attracted#overseas#almost#as#soon#as#they#finish#their#training,#due#
       to#much#higher#pay#and#better#working#conditions.#
   D Mandating#free#education#for#all#children#in#a#country#won’t#necessarily#solve#this#
       problem,#as#there#are#many#other#issues#surrounding#education.#For#example,#in#
       India#parentsD#even#those#on#very#low#incomesD#will#scrimp#and#save#to#get#their#
       children#into#feeDpaying#schools#because#standards#have#been#gradually#slipping#in#
       state#schools#as#their#numbers#have#grown#(Economist,#March#2012).#
#
*
*
Primary*Product*Dependency:#
#
Explanation#case#studies:#
   D Angola#is#highly#dependent#on#the#oil#industry,#and#as#such#in#both#2006#and#2007#
       real#GDP#had#surged#by#around#20%,#and#doubleDdigit#growth#rates#were#widely#
       predicted#for#at#least#the#next#five#years.#Then#oil#prices#crashed#with#the#global#
       recession.#Last#year#the#economy#is#estimated#to#have#grown,#at#best,#by#1.5%#
       (Economist,#Jan#2010)#
   D Sierra#Leone#is#heavily#reliant#on#the#diamond#trade,#with#this#being#one#of#its#main#
       exports.#For#years#these#diamonds#fuelled#violent#conflict#within#the#country#and#
       many#children#were#forced#to#work#in#the#mines.#Despite#the#wealth#these#resources#
       should#be#generating,#70.2%#of#the#country’s#population#live#below#the#poverty#line#
       (as#of#2004)#
Evaluation#case#studies:#
   D Such#resources#can#be#developed#for#the#good#of#a#country,#e.g.#in#Angola#oil#has#
       helped#to#bring#peace#&#prosperity:#the#port#is#being#modernised,#new#roads#&#
       railways#are#being#built,#The#government#plans#to#build#1m#homes#for#shackDdwellers#
       by#2012,#waterDpurification#plants#are#being#installed,#and#electricity#being#brought#
       to#villages#and#urban#slums#
   D In#the#end,#having#some#sort#of#resource#is#clearly#better#than#nothingD#the#
       government#just#needs#to#manage#it#carefullyD#look#at#most#MiddleDEastern#countries#
       and#what#they#have#done#with#their#oil#wealth.#
   D Botswana#has#managed#to#create#a#highly#successful#and#profitable#50D50#joint#
       venture#with#De#Beers,#the#world’s#leading#diamond#firm.#This#has#ensured#the#
       country#and#the#government#benefit#from#the#industry,#including#keeping#the#jobs#of#
       sorting,#refining,#etc.#within#Botswana#rather#than#in#developed#countries#like#the#UK#
       (Economist,#Feb#2012)#
#                                               4
Poor*governance/civil*war:#
#
Explanation#case#studies:#
   D Angola:#A#14Dyear#war#of#independence#against#its#former#Portuguese#masters#until#
       1975#had#been#followed#by#nearly#three#decades#of#fighting#between#the#communist#
       and#proDWestern#groups#that#ended#in#2002.#Out#of#a#population#of#7m#in#1980,#
       some#1.5m#were#killed#and#more#than#4m#forced#to#flee#their#homes.#A#whole#
       generation#had#missed#their#education.#Infrastructure,#political#institutions#and#social#
       services#had#to#be#rebuilt,#often#from#scratch.#
   D Sierra#Leone#and#the#fighting#over#blood#diamonds#led#to#a#very#long#civil#war#which#
       left#the#country#in#a#ruined#state.#More#than#2#million#people#(over#a#third#of#the#
       population)#were#displaced#by#the#conflict#and#there#was#essentially#no#government#
       control.#
   D Somalia:#declared#by#the#Economist#to#be#the#worst#country#on#the#planet,#Somalia#
       completely#lacks#a#functioning#government#of#any#sort#and#is#simply#governed#by#a#
       collection#of#pirates#and#tribal#warlords#who#control#their#own#small#territory.##
   D Syria#is#obviously#the#latest#country#to#experience#the#‘Arab#Spring’,#but#what#looks#
       increasingly#like#a#civil#war#is#clearly#costing#the#economy#greatly.#Many#have#died#in#
       the#fighting,#others#have#taken#up#arms#against#the#governmentD#clearly#not#much#
       economic#activity#is#going#to#be#taking#place,#and#no#foreign#firm#in#their#right#mind#
       would#invest#in#Syria#at#the#moment.#
Evaluation#case#studies:#
   D Despite#the#major#problems,#some#services#in#Somalia#are#still#flourishingD#a#number#
       of#companies#have#introduced#mobile#phone#networks#to#the#country#and#their#
       subscriber#numbers#are#increasing#rapidly#
   D Depends#on#severity#of#war#or#if#it#affects#a#whole#country,#or#only#part#of#one.#
   D Potential#for#a#‘better’#situation#once#conflict#has#been#resolved#in#the#long#run.#E.g.#
       potentially,#with#a#democratic#government,#Egypt#will#be#free#to#prosper#and#enjoy#
       increasing#economic#growth#at#faster#rates#than#would#have#been#possible#under#the#
       corrupt#regime#of#Mubarak.#
#
#
#
Corruption:#
#
Explanation#case#studies:#
   D Zimbabwe#is#probably#the#best#example#here.#Robert#Mugabe#essentially#ruined#
       what#was#once#one#of#Africa’s#richest#countries.#Whilst#land#redistribution#is#a#good#
       policy#in#itself,#the#skilled#and#knowledgeable#white#farmers#were#simply#thrown#off#
       their#land#with#no#compensation#and#the#land#was#then#parcelled#up#and#given#to#
       supporters#of#Mugabe’s#ZanuDPF#party#who#had#little#or#no#knowledge#of#how#to#
       farm#the#land,#leading#to#a#drastic#loss#of#agricultural#output#in#the#country.#Mugabe#
       also#began#printing#money#when#the#government’s#coffers#ran#out,#which#led#to#
       hyperinflation,#with#people’s#life#savings#suddenly#becoming#worthless.#
   D Rwanda’s#government#has#been#working#very#hard#to#overcome#corruption,#
       including#jailing#government#ministers.#According#to#Transparency#International#it#is#
       now#‘less#graftDridden#that#Italy#or#Greece’.#This#has#led#to#much#more#business#
       activity#in#the#country,#both#local#and#foreign#firmsD#for#example#Visa#are#now#
       helping#Rwandan#firms#to#link#into#its#global#payments#network.#(Economist,#Feb#
       2012)#
       #
#
#
#                                                5
#
Evaluation#case#studies:#
    D Corruption#present#in#many#governments,#but#that#doesn’t#necessarily#mean#that#it’s#
       a#problemD#many#fairly#successful#countries#have#very#corrupt#systems#in#place,#e.g.#
       in#India#it#is#generally#accepted#that#bribes#are#needed#to#smooth#many#daily#
       transactions#with#state#officialsD#e.g.#student#loans,#electricity#suppliers,#border#
       officials.#This#does#not#stop#India#enjoying#rapid#economic#growth#and#its#firms#
       expanding#abroad#in#a#number#of#significant#industries,#the#most#famous#example#
       being#TATA#(owners#of#Corus,#a#European#steel#company,#and#JaguarDLand#Rover#
       among#many#others).#
#
#
Strategies#to#promote#growth#&#development#
#
Aid:#
#
Explanation#case#studies:#
    D Haiti#earthquake:#this#is#an#example#of#‘emergency’#aid#or#‘disasterDrelief’,#and#is#
       generally#seen#as#a#good#response#to#events#such#as#natural#disasters#which#
       countries,#particularly#developing#ones,#will#struggle#to#cope#with.#
    D Aid#agencies#around#the#world#are#currently#campaigning#hard#for#funds#to#prevent#
       what#many#experts#predict#will#be#a#major#humanitarian#disaster#across#West#and#
       Central#Africa#in#the#summer#of#2012.#According#to#Oxfam#(Feb#2012),#across#the#
       Sahel#region#13#million#people#are#at#severe#risk#of#a#food#crisis#caused#by#drought,#
       erratic#rains,#high#food#prices,#and#regional#conflicts.#Oxfam#are#seeking#to#raise#
       ÂŁ23m#through#its#emergency#appeal.#
    D Malaria#nets#campaign#has#been#running#for#several#years#now,#designed#to#
       reduce/wipe#out#malaria#across#Africa,#mainly#by#providing#free#malaria#nets#to#those#
       in#need.#This#is#a#very#cheap#yet#highly#effective#way#to#attempt#to#‘solve’#the#
       problem#of#Malaria#in#many#developing#countries.##
Evaluation#case#studies:#
    D Large#amounts#of#aid#money#is#given#to#Israel,#much#more#than#they#would#seem#to#
       deserve,#given#the#fact#that#they#are#not#really#a#poor#countryD#suggesting#that#
       politics#often#gets#in#the#way#of#aid#transactions#
    D Compare#the#earthquake#in#Haiti#to#that#in#Chile,#where#very#few#people#died#and#
       the#government#was#able#to#quickly#respond#to#the#problems#that#it#did#causeD#in#
       sharp#contrast#to#Haiti#where#the#government#was#completely#unable#to#react#
    D A#problem#with#the#malaria#nets#campaign#was#that#these#nets#were#all#imported#
       from#abroad#to#be#distributed#in#many#African#countries,#but#this#then#led#to#the#loss#
       of#local#manufacturers#of#nets#and#so#damaged#economic#growth.#It#also#meant#
       there#was#noDone#available#locally#to#repair#the#imported#nets#when#they#became#
       damaged.#
    D The#key#issue#with#shortDterm#‘emergency’#aid#is#it#does#little#to#solve#the#longDterm#
       issues#in#many#countries.#The#Sahel#region#of#Africa#was#in#a#very#similar#position#last#
       Summer,#needing#massive#support#from#international#organisations#such#as#Oxfam#
       and#the#UN’s#world#food#programme.#This#situation#is#likely#to#continue#unless#a#
       more#longDterm#strategy#can#be#brought#in.#
    D Over#the#last#few#decades#around#$1#trillion#has#been#given#to#African#countries#in#
       aid#from#developed#countries,#yet#many#countries#on#the#continent#still#suffer#hugely#
       from#absolute#povertyD#much#of#this#money#clearly#hasn’t#been#well#spent,#and#has#in#
       many#ways#created#a#culture#of#dependency#and#thus#simply#exacerbated#the#
       problem.#
#
#
#                                           6
#
Debt*Relief:#
#
Explanation#case#studies:#
   D Uganda#was#the#first#country#to#go#through#the#Heavily#Indebted#Poor#Countries#(HIPC)#
       initiative.#The#money#saved#thanks#to#debt#relief#can#now#be#spent#on#improved#
       education#and#healthcare,#including#paying#for#a#programme#about#HIV#and#AIDS,#
       with#the#result#that#the#number#of#people#infected#with#the#disease#is#falling.##
#
Evaluation#case#studies:#
   D The#basic#problem#with#offering#a#country#debt#relief#is#moral#hazardD#the#idea#that#it#
       could#then#simply#encourage#them#to#get#into#debt#again,#believing#that#once#more#
       they#will#simply#be#bailed#out.#This#can#be#applied#to#any#country#that#has#benefited#
       from#debt#relief.#
   D The#Heavily#Indebted#Poor#Countries#Initiative#has#also#been#heavily#criticised#for#
       enforcing#a#freeDmarket#agenda#on#countries#in#exchange#for#receiving#debt#relief.#
#
Developing*human*capital:#
#
Explanation#case#studies:#
   D One#Laptop#per#Child#initiative#in#Rwanda:#By#2012,#Rwanda#wants#every#child#in#the#
       country#between#the#ages#of#nine#and#12,#1.3m#children#in#all,#to#have#a#laptop,#each#
       with#an#internet#or#intranet#connection#to#download#free#educational#software#and#
       electronic#books.#By#2012#the#Rwandans#want#to#be#supplied#with#more#advanced#
       laptops#that#OlpC#is#developing.#These#will#be#made#from#a#single#piece#of#plastic.#
       They#will#be#waterproof,#harder#to#break,#have#colour#screens,#yet#could#cost#as#little#
       as#$75#each.#With#prices#that#low,#say#the#Rwandans,#children#might#be#able#to#keep#
       one#laptop#through#their#entire#school#career.#Schoolwork,#textbooks#and#a#library#of#
       other#books#and#applications#would#be#stored#in#them,#with#screens#designed#to#be#
       readable#in#bright#sunshine#and#to#use#minimal#power#in#huts#without#electricity#at#
       night.#
   D ‘Hole#in#the#Wall’#initiativeD#illustrates#that#highDquality#teaching#and#resources#are#
       not#essential#to#improving#students’#learningD#and#that#providing#them#with#
       computer#access#may#be#the#most#effective#method#to#improve#the#human#capital#of#
       a#country#
   D It#is#possible#to#compare#the#development#path#of#both#Singapore#and#Jamaica.#They#
       are#both#former#British#colonies#that#once#had#fairly#equal#levels#of#development.#
       However,#Singapore#decided#to#focus#on#the#education#of#its#workforce#whereas#
       Jamaica#focused#on#the#mining,#agricultural,#and#tourist#industries.#Singapore’s#GDP#
       is#now#roughly#seven#times#that#of#Jamaica#(Financial#Times)#
Evaluation#case#studies:#
   D South#Africa#example#from#earlier,#where#large#sums#of#money#have#been#invested#in#
       schooling#for#black#children,#but#it’s#done#little#to#solve#the#problems#these#children#
       face#as#the#root#causesD#poorly#trained#teachers#and#lack#of#facilitiesD#still#haven’t#
       been#addressed.#
   D Improving#education#isn’t#enough#on#its#own:#infrastructure#is#also#needed#if#these#
       highly#skilled#workers#are#to#have#jobs#(e.g.#reliable#electricity#supply#essential#for#
       many#industriesD#such#as#the#call#centre#companies#Kenya#is#trying#to#attract)#
   D Creating#a#highly#skilled#workforce#might#not#be#enoughD#e.g.#in#the#Caribbean#many#
       nurses#are#being#trained,#but#they#are#simply#leaving#for#better#jobs#in#the#developed#
       world#as#soon#as#possible#
   D In#Peru#the#one#laptop#per#child#scheme#has#been#operating#for#around#a#year#now,#
       and#the#schools#involved#in#the#scheme#have#seen#little#or#no#improvement#in#the#
       students’#grades.#This#is#partly#down#to#lack#of#teacher#training#in#how#to#make#the#
       best#use#of#the#new#technologyD#with#in#many#cases#the#laptops#simply#being#used#as#
       ‘highDtech#notebooks’#(Economist,#April#2012)#         7
#
Fairtrade*schemes:#
#
Explanation#case#studies:##
    D In#Ghana#the#Volta#River#Estates#plantation#is#situated#in#an#area#of#the#country#with#
       high#unemployment,#offering#wages#60%#above#the#national#minimum#wage#and#
       providing#healthcare#for#all#workers#
Evaluation#case#studies:#
    D Can#encourage#farmers#to#overproduce,#e.g.#coffee#is#a#commodity#grown#in#many#
       developing#countries#and#which#has#in#the#past#been#massively#overDproduced,#
       causing#significant#price#falls.#
    D What#about#all#the#farmers#who,#for#whatever#reason,#aren’t#involved#in#the#
       Fairtrade#scheme?#
    D In#some#cases,#the#ability#to#sell#Fairtrade#crops#is#restricted#to#farmers#in#coD
       operatives,#again#limiting#access#for#farmers#who#aren’t#in#this#position#




                                       8
Levels Essav Marking Criteria

For the 'essay' half of your exam you must answer two essay questions, one 20
marks and one 30 marks. They are both marked according to a levels system, as
detailed below. Remember that you should be writing one paragraph per point,
whether explanation or evaluation. Also, within your explanation points you
must demonstrate the exam skills or knowledge, application, and analysis. This
means you MUST relate what you are talking about to economic theory, explain it
step-by-step, and illustrate your arguments with relevant case studies. Always
AIM for level 5 and make sure there's some clear, detailed evaluation within both
answers- otherwise you're severely limiting your potential grade.


Criteria for 20-mark essays

  Level       14ark
  Level   1   1-7      ldentification of poinis onlv
  Level   2   8-10     Consideration of one factor with one evalualive point or 2 pclnts with no
                       evaIua:ion
  Level   3   11-14    Consideration of 2 factors with one evatuative point or 3 points with no
                     evaluai.ion
  Level 4
              .15-16 Consideration of trading    blocs and 2 ather factors with one evaluative
                       ooint
  Level   5   17-20    ConsidEration of trading blocr and 2 other fqctorr with at least trvo
                       evaluative points




Criteria for 30-mark essalrs

 Level        Mark    Descriptor
 Level    1   1-11    ldentification of points only
 Level    2   12-15   2 factors with two evaluative points or 3 factors and 1 evaluative comment
 Level    3   l5-21    3 factors with two evaluative points

 Level 4      z7-25   4 faciors with two Evatuative pointr

 Level    3   26-30   4 factors with at teast three evatuative points



Take special care here- without evaluation your highest mark will be 11/301.




                                                   9
                                             1
Potential)Essay)Questions)
                                  )
These%questions%come%from%a%variety%of%sources3%some%from%the%exam%
board,%some%from%textbooks,%and%quite%a%few%you%might%recognise%from%the%
lessons.%They’re%all%the%‘style’%of%essay%question%you%could%be%asked%in%the%
exam%and%all%relate%to%the%exam%board%specification,%and%so%are%on%the%
topics%you%could%be%asked%about%in%the%exam.%Have%a%go%at%planning%or%
writing%out%answers%to%them3%I’m%happy%to%mark%anything%you’ve%done.%
%
N.B.%I%haven’t%put%marks%by%most%of%these,%as%generally%the%questions%can%be%
considered%as%either%20%or%30%mark%ones3%the%style%of%response%you%should%
give%is%pretty%much%the%same,%just%in%a%bit%more%detail%for%the%30%mark%ones.%
%
Remember%to%ensure%you%are%following%the%criteria%set%out%in%the%levels%
guide%when%answering%essay%questions.%
%
The%questions%below%highlighted%in%bold%are%particularly%good%examples%of%
essay%questions%because%they%are%more%vague%and%open3ended%than%some%
of%the%other%questions,%and%so%I%would%encourage%you%to%focus%on%these%in%
particular.%
%
%
                                        3%3%3%
%
    a. To)what)extent)is)economic)growth)compatible)with)
        sustainable)development?)(20)marks))
    b. Evaluate)four)major)barriers)to)growth)and)development)
        experienced)by)LEDCs)(30)marks))
%
                                          3%
                                           %
Discuss)two)factors)that)are)likely)to)influence)the)levels)of)economic)
growth)in)developing)countries)
%
                                          3%
%
Assess)the)causes)of)absolute)poverty)in)a)developing)country)of)your)
choice)
                                           )
                                          I)
                                           )
To)what)extent)is)reducing)the)number)of)people)living)in)absolute)
poverty)sufficient)to)achieve)economic)development?)
                                           %
%
                                          3%
                                           %


                                   10
Evaluate)three)key)policies)to)help)promote)economic)development)
in)LEDCs)
%
                                         3%
                                          %
What,%in%your%opinion,%are%the%three%key%things%a%developing%country%
government%should%do%to%help%to%increase%its%economic%growth%rate?%
                                          %
                                         3%
%
‘a%lack%of%access%to%financial%services%is%the%biggest%hindrance%on%economic%
development%in%LEDCs’.%Discuss%this%statement.%
%
                                         3%
%
‘South%Africa’s%Education%Inequality%can%only%be%solved%by%massive%public%
investment%in%schools%and%teachers%in%rural%black%townships’.%Discuss.%%
%
                                         3%
%
Why%is%human%capital%considered%crucial%to%economic%development%in%
LEDCs?%
%
                                         3%
%
How%might%a%developing%country%government%encourage%greater%
investment%in%capital%accumulation?%
What%problems%might%it%face%in%attempting%to%do%this?%
Why%is%a%‘savings%gap’%a%major%problem%for%LEDCs?%
%
                                         3%
                                          %
Using%the%example%of%Guinea,%assess%the%significance%of%political%instability%
in%hampering%a%country’s%economic%development%%
(for%this%you’ll%need%to%look%in%the%‘poor%governance’%folder%for%some%
information%on%Guinea3%or%do%some%research%to%find%out%the%latest%situation%
in%this%very%volatile%country)%
%
                                         3%
                                          %
Why%does%a%lack%of%infrastructure%limit%a%country’s%development?%
%
                                         3%
%
Are%high%population%growth%rates%a%blessing%or%a%burden%for%developing%
countries?%
%
                                         3%

                                      11
%
Why%is%it%a%problem%for%countries%to%rely%on%exports%of%a%few%primary%
products?%
%
                                       3%
                                        %
What%can%developing%country%governments%do,%focusing%specifically%on%the%
agricultural%sector,%to%promote%growth%&%development?%
%
                                       3%
                                        %
Analyse%the%effectiveness%of%international%organisations%such%as%the%IMF%
and%World%Trade%Organisation%in%helping%to%promote%economic%
development%
%
                                       3%
                                        %
Do%fairtrade%schemes%help%to%support%workers%in%developing%countries,%or%
do%they%simply%distort%free%trade%and,%overall,%do%more%harm%than%good?%
%
                                       3%
                                        %
Should%development%aid%be%provided%to%countries%most%in%need%or%those%
best%equipped%to%make%good%use%of%the%funding?%
%
                                       3%
                                        %
Should%the%debts%of%all%LEDC%governments%be%wiped%clean%to%enable%them%
to%invest%further%in%developing%their%economies%and%lifting%their%citizens%
out%of%poverty?%
%
                                       3%
                                        %
How%can%tourism%benefit%developing%countries?%
%
What%are%some%of%the%drawback%of%tourism%for%developing%countries?%
%
                                       3%
                                        %
‘The%UN’s%Millennium%Development%Goals%do%more%harm%than%good’%Do%you%
agree%with%this%statement?%
%
                                       3%
%
‘The%global%targets%the%world%set%for%itself%five%years%ago%did%not%emerge%
from%the%bottom%up,%as%the%sum%of%what%might%be%feasible%in%each%poor%
country.%They%were%instead%imposed%from%the%top%down.%Their%fit%is%thus%
often%rather%awkward.’%

                                 12
Discuss%whether%this%means%that%global%targets%such%as%the%Millennium%
Development%Goals%do%more%harm%than%good.%
%
                                     3%
                                      %
Income%distribution%in%Namibia%is%much%more%unequal%than%in%the%United%
States.%What%might%be%the%reasons%for%this?%
%
                                     3%




                             13

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Development Revision Pack 2012

  • 2. Contents Page: Page 1: Revision Questions Page 3: Case Studies Page 9: Levels Marking Criteria Page 10: Potential Essay Questions
  • 3. Poverty & Income Inequality o What is the difference between absolute & relative poverty? o What does a Lorenz curve measure? o Draw a Lorenz curve illustrating perfect equality o What does the gini coefficient measure? o How is this calculated? o What factors can cause poverty? o What are some of the disadvantages/limitations of using the Lorenz curve and gini coefficient to measure income inequality? o Draw and explain the Kuznets curve Measuring Economic Development o What is the difference between first, second, and third world countries? o What is GDP and GNP? o What does 'per capita'mean? o What is purchasing power parity? o Briefly describe the Human Development Index o Briefly describe the Human Poverty Index Millennium Development Goals o What are the eight Millennium Development Goals? o For each one, briefly describe how it is measured o For each one, research how progress is going towards reaching it o Web resources available at: httn://delicious.com/sidcuneconomics
  • 4. Limits to Growth & Development Construct a table (see example below) listing all the limits to growth and development we have discussed in lessons, For each one, consider WHY it is a limit, note down any relevant real-world examples, and then EVALUATE why it might not be that much of a problem really Limits Explanation of Real-world Evaluation- is this why it's a limit examples really holding developing countries back? Strategies to Promote Growth & Development Do the same as above, only focusing on what can be done to assist developing countries [N.8. if you're struggling to remember the limits/strategies listed above, see the specification on Fusion) Looking for examples for each of the above, you have been provided with many in the lessons, but many more can be found on the internet- especially at www.economist.com, and in particular in the'Africa'section. Theories of Economic Development For each of the theories below, make the following notes: 1,. What is it's main argument? [draw diagrams if appropriate) 2. What are the limitations with this theory? 3. Can you relate this to any real-world examples? o Harrod-Domar Model o Rostow's Stages of Devlopment . DependencyTheory o Lewis Model L
  • 5. Development*Economics:*Linking*Case*Studies*to*Exam*Answers* * It#will#really#help#you#in#the#Unit#4#exam#if#you#can#bring#in#some#case#studies#to#back#up# your#argument.#To#help#you#with#this,#I#have#produced#this#sheet#which#includes#a#selection# of#useful#examples#you#can#use#in#exam#questions#focused#on#both#the#limits#to#growth#&# development#and#the#strategies#governments#can#use#to#promote#it.#Please#take#some#time# to#revise#these#in#preparation#for#your#exams,#and#then#use#them#in#your#answers.# # Limits#to#growth#and#development# # Poor*infrastructure:* # In#terms#of#transport,#this#generally#means#a#lack#of#paved#roads,#limited#or#no#railway# system,#limited#port/airport#facilities#making#trade#more#expensive/difficult.# This#also#relates#to#communication#systemsD#e.g.#telephone,#internet,#mobile#phones,#etc.# # Explanation#case#studies:# D The#World#Bank#says#that#the#lack#of#inadequate#logistics#adds#15%#to#34%#to#the# cost#of#exports#for#Latin#American#businesses,#compared#with#about#10%#in#other# middleDincome#countries#(BBC#News,#2005)# D Investors#in#Kenya#are#reluctant#to#build#new#offices#etc.#which#rely#on#electricity#due# to#the#country’s#‘patchy’#electricity#service,#which#means#their#costs#increase# significantly#due#to#the#need#for#backup#generators#(Economist,#March#2010)# D China’s#latest#fiveDyear#plan,#which#started#in#April#2012,#includes#$1trn#of# infrastructure#spending.#China#are#also#rapidly#expanding#their#highDspeed#rail# network,#aiming#for#19,000#miles#of#track#in#total#(Economist,#Nov#2011)# D Later#on#in#2012#Brazil’s#Acu#Superport#will#be#opened,#improving#efficiency#of# exports#of#key#commodities#to#ChinaD#the#port#has#been#dubbed#the#‘highway#to# China’#(Economist,#Nov#2011)# Evaluation#case#studies:## D Many#developing#countries#have#done#a#lot#to#overcome#the#problem#of#poor# telecommunications#infrastructure#by#skipping#‘old’#technologies#like#fixedDline# phone#networks#and#gone#straight#for#mobile#phones#and#fibreDoptic#cables.#In# Kenya,#three#fibreDoptic#cables#have#arrived#at#the#start#of#2010.#Jeffrey#Sachs#has# described#mobiles#phones#as#‘the#single#most#transformative#tool#for#development’.# In#a#muchDcited#study#in#2005,#for#example,#Leonard#Waverman#of#the#London# Business#School#found#that#an#extra#ten#mobile#phones#per#100#people#in#a#typical# developing#country#added#0.6#percentage#points#of#growth#in#GDP#per#person.# D Angola#is#also#following#this#strategy#of#skipping#towards#the#latest#communication# infrastructure#as#it#launches#a#4G#network#this#year,#way#before#much#of#Europe# (BBC,#May#2012)# D Governments#rarely#know#what’s#best#for#their#economiesD#they#tend#to#pick# ‘prestige’#projects#rather#than#those#which#would#generate#the#most#econonmic# benefit#for#the#country.#For#example,#China#invests#over#50%#of#its#GDP#and#provides# very#generous#loan#terms#for#‘pet’#government#projects#such#as#the#highDspeed#rail# network.#In#particular,#the#Shanghai#maglev#shuttle#to#the#airport#is#more#popular#as# a#tourist#attraction#than#as#a#method#of#public#transport#due#to#its#high#prices#and# failure#to#link#directly#to#‘downtown’#(Economist,#Sep#2011)# # # # # # # 3
  • 6. Human*Capital*inadequacies:# # Explanation#case#studies:# D In#South#Africa,#despite#significant#levels#of#investment,#black#children#still#lag# significantly#behind#their#white#counterparts#in#terms#of#educational#attainment.# There#are#a#number#of#reasons#behind#this,#including#poorer#quality#teaching#and# lack#of#facilities,#but#it#leads#on#to#problems#for#these#children#in#the#future.# D In#the#OECD’s#worldwide#tests#of#pupils’#abilities#in#reading,#maths#and#science,#Brazil# is#near#the#bottom#of#the#class.#In#schools#run#by#state#governments,#13%#of#all# school#days#were#lost#owing#to#absent#teachers#in#2006.#On#a#bad#day#in#bad#schools# in#bad#states,#teachers’#absenteeism#can#reach#30%.# D There#are#still#approx.#72m#children#around#the#world#not#in#education,#half#of#them# in#subDSaharan#Africa.#The#UN#reckons#it#would#cost#$16bn#a#year#to#get#all#these# children#into#school.# Evaluation#case#studies:# D Despite#investments#in#improving#education#and#training#in#the#Caribbean,#the# country#is#still#desperately#short#of#the#skilled#medical#staff#it#desperately#needs#as# many#of#them#are#attracted#overseas#almost#as#soon#as#they#finish#their#training,#due# to#much#higher#pay#and#better#working#conditions.# D Mandating#free#education#for#all#children#in#a#country#won’t#necessarily#solve#this# problem,#as#there#are#many#other#issues#surrounding#education.#For#example,#in# India#parentsD#even#those#on#very#low#incomesD#will#scrimp#and#save#to#get#their# children#into#feeDpaying#schools#because#standards#have#been#gradually#slipping#in# state#schools#as#their#numbers#have#grown#(Economist,#March#2012).# # * * Primary*Product*Dependency:# # Explanation#case#studies:# D Angola#is#highly#dependent#on#the#oil#industry,#and#as#such#in#both#2006#and#2007# real#GDP#had#surged#by#around#20%,#and#doubleDdigit#growth#rates#were#widely# predicted#for#at#least#the#next#five#years.#Then#oil#prices#crashed#with#the#global# recession.#Last#year#the#economy#is#estimated#to#have#grown,#at#best,#by#1.5%# (Economist,#Jan#2010)# D Sierra#Leone#is#heavily#reliant#on#the#diamond#trade,#with#this#being#one#of#its#main# exports.#For#years#these#diamonds#fuelled#violent#conflict#within#the#country#and# many#children#were#forced#to#work#in#the#mines.#Despite#the#wealth#these#resources# should#be#generating,#70.2%#of#the#country’s#population#live#below#the#poverty#line# (as#of#2004)# Evaluation#case#studies:# D Such#resources#can#be#developed#for#the#good#of#a#country,#e.g.#in#Angola#oil#has# helped#to#bring#peace#&#prosperity:#the#port#is#being#modernised,#new#roads#&# railways#are#being#built,#The#government#plans#to#build#1m#homes#for#shackDdwellers# by#2012,#waterDpurification#plants#are#being#installed,#and#electricity#being#brought# to#villages#and#urban#slums# D In#the#end,#having#some#sort#of#resource#is#clearly#better#than#nothingD#the# government#just#needs#to#manage#it#carefullyD#look#at#most#MiddleDEastern#countries# and#what#they#have#done#with#their#oil#wealth.# D Botswana#has#managed#to#create#a#highly#successful#and#profitable#50D50#joint# venture#with#De#Beers,#the#world’s#leading#diamond#firm.#This#has#ensured#the# country#and#the#government#benefit#from#the#industry,#including#keeping#the#jobs#of# sorting,#refining,#etc.#within#Botswana#rather#than#in#developed#countries#like#the#UK# (Economist,#Feb#2012)# # 4
  • 7. Poor*governance/civil*war:# # Explanation#case#studies:# D Angola:#A#14Dyear#war#of#independence#against#its#former#Portuguese#masters#until# 1975#had#been#followed#by#nearly#three#decades#of#fighting#between#the#communist# and#proDWestern#groups#that#ended#in#2002.#Out#of#a#population#of#7m#in#1980,# some#1.5m#were#killed#and#more#than#4m#forced#to#flee#their#homes.#A#whole# generation#had#missed#their#education.#Infrastructure,#political#institutions#and#social# services#had#to#be#rebuilt,#often#from#scratch.# D Sierra#Leone#and#the#fighting#over#blood#diamonds#led#to#a#very#long#civil#war#which# left#the#country#in#a#ruined#state.#More#than#2#million#people#(over#a#third#of#the# population)#were#displaced#by#the#conflict#and#there#was#essentially#no#government# control.# D Somalia:#declared#by#the#Economist#to#be#the#worst#country#on#the#planet,#Somalia# completely#lacks#a#functioning#government#of#any#sort#and#is#simply#governed#by#a# collection#of#pirates#and#tribal#warlords#who#control#their#own#small#territory.## D Syria#is#obviously#the#latest#country#to#experience#the#‘Arab#Spring’,#but#what#looks# increasingly#like#a#civil#war#is#clearly#costing#the#economy#greatly.#Many#have#died#in# the#fighting,#others#have#taken#up#arms#against#the#governmentD#clearly#not#much# economic#activity#is#going#to#be#taking#place,#and#no#foreign#firm#in#their#right#mind# would#invest#in#Syria#at#the#moment.# Evaluation#case#studies:# D Despite#the#major#problems,#some#services#in#Somalia#are#still#flourishingD#a#number# of#companies#have#introduced#mobile#phone#networks#to#the#country#and#their# subscriber#numbers#are#increasing#rapidly# D Depends#on#severity#of#war#or#if#it#affects#a#whole#country,#or#only#part#of#one.# D Potential#for#a#‘better’#situation#once#conflict#has#been#resolved#in#the#long#run.#E.g.# potentially,#with#a#democratic#government,#Egypt#will#be#free#to#prosper#and#enjoy# increasing#economic#growth#at#faster#rates#than#would#have#been#possible#under#the# corrupt#regime#of#Mubarak.# # # # Corruption:# # Explanation#case#studies:# D Zimbabwe#is#probably#the#best#example#here.#Robert#Mugabe#essentially#ruined# what#was#once#one#of#Africa’s#richest#countries.#Whilst#land#redistribution#is#a#good# policy#in#itself,#the#skilled#and#knowledgeable#white#farmers#were#simply#thrown#off# their#land#with#no#compensation#and#the#land#was#then#parcelled#up#and#given#to# supporters#of#Mugabe’s#ZanuDPF#party#who#had#little#or#no#knowledge#of#how#to# farm#the#land,#leading#to#a#drastic#loss#of#agricultural#output#in#the#country.#Mugabe# also#began#printing#money#when#the#government’s#coffers#ran#out,#which#led#to# hyperinflation,#with#people’s#life#savings#suddenly#becoming#worthless.# D Rwanda’s#government#has#been#working#very#hard#to#overcome#corruption,# including#jailing#government#ministers.#According#to#Transparency#International#it#is# now#‘less#graftDridden#that#Italy#or#Greece’.#This#has#led#to#much#more#business# activity#in#the#country,#both#local#and#foreign#firmsD#for#example#Visa#are#now# helping#Rwandan#firms#to#link#into#its#global#payments#network.#(Economist,#Feb# 2012)# # # # # 5 #
  • 8. Evaluation#case#studies:# D Corruption#present#in#many#governments,#but#that#doesn’t#necessarily#mean#that#it’s# a#problemD#many#fairly#successful#countries#have#very#corrupt#systems#in#place,#e.g.# in#India#it#is#generally#accepted#that#bribes#are#needed#to#smooth#many#daily# transactions#with#state#officialsD#e.g.#student#loans,#electricity#suppliers,#border# officials.#This#does#not#stop#India#enjoying#rapid#economic#growth#and#its#firms# expanding#abroad#in#a#number#of#significant#industries,#the#most#famous#example# being#TATA#(owners#of#Corus,#a#European#steel#company,#and#JaguarDLand#Rover# among#many#others).# # # Strategies#to#promote#growth#&#development# # Aid:# # Explanation#case#studies:# D Haiti#earthquake:#this#is#an#example#of#‘emergency’#aid#or#‘disasterDrelief’,#and#is# generally#seen#as#a#good#response#to#events#such#as#natural#disasters#which# countries,#particularly#developing#ones,#will#struggle#to#cope#with.# D Aid#agencies#around#the#world#are#currently#campaigning#hard#for#funds#to#prevent# what#many#experts#predict#will#be#a#major#humanitarian#disaster#across#West#and# Central#Africa#in#the#summer#of#2012.#According#to#Oxfam#(Feb#2012),#across#the# Sahel#region#13#million#people#are#at#severe#risk#of#a#food#crisis#caused#by#drought,# erratic#rains,#high#food#prices,#and#regional#conflicts.#Oxfam#are#seeking#to#raise# ÂŁ23m#through#its#emergency#appeal.# D Malaria#nets#campaign#has#been#running#for#several#years#now,#designed#to# reduce/wipe#out#malaria#across#Africa,#mainly#by#providing#free#malaria#nets#to#those# in#need.#This#is#a#very#cheap#yet#highly#effective#way#to#attempt#to#‘solve’#the# problem#of#Malaria#in#many#developing#countries.## Evaluation#case#studies:# D Large#amounts#of#aid#money#is#given#to#Israel,#much#more#than#they#would#seem#to# deserve,#given#the#fact#that#they#are#not#really#a#poor#countryD#suggesting#that# politics#often#gets#in#the#way#of#aid#transactions# D Compare#the#earthquake#in#Haiti#to#that#in#Chile,#where#very#few#people#died#and# the#government#was#able#to#quickly#respond#to#the#problems#that#it#did#causeD#in# sharp#contrast#to#Haiti#where#the#government#was#completely#unable#to#react# D A#problem#with#the#malaria#nets#campaign#was#that#these#nets#were#all#imported# from#abroad#to#be#distributed#in#many#African#countries,#but#this#then#led#to#the#loss# of#local#manufacturers#of#nets#and#so#damaged#economic#growth.#It#also#meant# there#was#noDone#available#locally#to#repair#the#imported#nets#when#they#became# damaged.# D The#key#issue#with#shortDterm#‘emergency’#aid#is#it#does#little#to#solve#the#longDterm# issues#in#many#countries.#The#Sahel#region#of#Africa#was#in#a#very#similar#position#last# Summer,#needing#massive#support#from#international#organisations#such#as#Oxfam# and#the#UN’s#world#food#programme.#This#situation#is#likely#to#continue#unless#a# more#longDterm#strategy#can#be#brought#in.# D Over#the#last#few#decades#around#$1#trillion#has#been#given#to#African#countries#in# aid#from#developed#countries,#yet#many#countries#on#the#continent#still#suffer#hugely# from#absolute#povertyD#much#of#this#money#clearly#hasn’t#been#well#spent,#and#has#in# many#ways#created#a#culture#of#dependency#and#thus#simply#exacerbated#the# problem.# # # # 6 #
  • 9. Debt*Relief:# # Explanation#case#studies:# D Uganda#was#the#first#country#to#go#through#the#Heavily#Indebted#Poor#Countries#(HIPC)# initiative.#The#money#saved#thanks#to#debt#relief#can#now#be#spent#on#improved# education#and#healthcare,#including#paying#for#a#programme#about#HIV#and#AIDS,# with#the#result#that#the#number#of#people#infected#with#the#disease#is#falling.## # Evaluation#case#studies:# D The#basic#problem#with#offering#a#country#debt#relief#is#moral#hazardD#the#idea#that#it# could#then#simply#encourage#them#to#get#into#debt#again,#believing#that#once#more# they#will#simply#be#bailed#out.#This#can#be#applied#to#any#country#that#has#benefited# from#debt#relief.# D The#Heavily#Indebted#Poor#Countries#Initiative#has#also#been#heavily#criticised#for# enforcing#a#freeDmarket#agenda#on#countries#in#exchange#for#receiving#debt#relief.# # Developing*human*capital:# # Explanation#case#studies:# D One#Laptop#per#Child#initiative#in#Rwanda:#By#2012,#Rwanda#wants#every#child#in#the# country#between#the#ages#of#nine#and#12,#1.3m#children#in#all,#to#have#a#laptop,#each# with#an#internet#or#intranet#connection#to#download#free#educational#software#and# electronic#books.#By#2012#the#Rwandans#want#to#be#supplied#with#more#advanced# laptops#that#OlpC#is#developing.#These#will#be#made#from#a#single#piece#of#plastic.# They#will#be#waterproof,#harder#to#break,#have#colour#screens,#yet#could#cost#as#little# as#$75#each.#With#prices#that#low,#say#the#Rwandans,#children#might#be#able#to#keep# one#laptop#through#their#entire#school#career.#Schoolwork,#textbooks#and#a#library#of# other#books#and#applications#would#be#stored#in#them,#with#screens#designed#to#be# readable#in#bright#sunshine#and#to#use#minimal#power#in#huts#without#electricity#at# night.# D ‘Hole#in#the#Wall’#initiativeD#illustrates#that#highDquality#teaching#and#resources#are# not#essential#to#improving#students’#learningD#and#that#providing#them#with# computer#access#may#be#the#most#effective#method#to#improve#the#human#capital#of# a#country# D It#is#possible#to#compare#the#development#path#of#both#Singapore#and#Jamaica.#They# are#both#former#British#colonies#that#once#had#fairly#equal#levels#of#development.# However,#Singapore#decided#to#focus#on#the#education#of#its#workforce#whereas# Jamaica#focused#on#the#mining,#agricultural,#and#tourist#industries.#Singapore’s#GDP# is#now#roughly#seven#times#that#of#Jamaica#(Financial#Times)# Evaluation#case#studies:# D South#Africa#example#from#earlier,#where#large#sums#of#money#have#been#invested#in# schooling#for#black#children,#but#it’s#done#little#to#solve#the#problems#these#children# face#as#the#root#causesD#poorly#trained#teachers#and#lack#of#facilitiesD#still#haven’t# been#addressed.# D Improving#education#isn’t#enough#on#its#own:#infrastructure#is#also#needed#if#these# highly#skilled#workers#are#to#have#jobs#(e.g.#reliable#electricity#supply#essential#for# many#industriesD#such#as#the#call#centre#companies#Kenya#is#trying#to#attract)# D Creating#a#highly#skilled#workforce#might#not#be#enoughD#e.g.#in#the#Caribbean#many# nurses#are#being#trained,#but#they#are#simply#leaving#for#better#jobs#in#the#developed# world#as#soon#as#possible# D In#Peru#the#one#laptop#per#child#scheme#has#been#operating#for#around#a#year#now,# and#the#schools#involved#in#the#scheme#have#seen#little#or#no#improvement#in#the# students’#grades.#This#is#partly#down#to#lack#of#teacher#training#in#how#to#make#the# best#use#of#the#new#technologyD#with#in#many#cases#the#laptops#simply#being#used#as# ‘highDtech#notebooks’#(Economist,#April#2012)# 7
  • 10. # Fairtrade*schemes:# # Explanation#case#studies:## D In#Ghana#the#Volta#River#Estates#plantation#is#situated#in#an#area#of#the#country#with# high#unemployment,#offering#wages#60%#above#the#national#minimum#wage#and# providing#healthcare#for#all#workers# Evaluation#case#studies:# D Can#encourage#farmers#to#overproduce,#e.g.#coffee#is#a#commodity#grown#in#many# developing#countries#and#which#has#in#the#past#been#massively#overDproduced,# causing#significant#price#falls.# D What#about#all#the#farmers#who,#for#whatever#reason,#aren’t#involved#in#the# Fairtrade#scheme?# D In#some#cases,#the#ability#to#sell#Fairtrade#crops#is#restricted#to#farmers#in#coD operatives,#again#limiting#access#for#farmers#who#aren’t#in#this#position# 8
  • 11. Levels Essav Marking Criteria For the 'essay' half of your exam you must answer two essay questions, one 20 marks and one 30 marks. They are both marked according to a levels system, as detailed below. Remember that you should be writing one paragraph per point, whether explanation or evaluation. Also, within your explanation points you must demonstrate the exam skills or knowledge, application, and analysis. This means you MUST relate what you are talking about to economic theory, explain it step-by-step, and illustrate your arguments with relevant case studies. Always AIM for level 5 and make sure there's some clear, detailed evaluation within both answers- otherwise you're severely limiting your potential grade. Criteria for 20-mark essays Level 14ark Level 1 1-7 ldentification of poinis onlv Level 2 8-10 Consideration of one factor with one evalualive point or 2 pclnts with no evaIua:ion Level 3 11-14 Consideration of 2 factors with one evatuative point or 3 points with no evaluai.ion Level 4 .15-16 Consideration of trading blocs and 2 ather factors with one evaluative ooint Level 5 17-20 ConsidEration of trading blocr and 2 other fqctorr with at least trvo evaluative points Criteria for 30-mark essalrs Level Mark Descriptor Level 1 1-11 ldentification of points only Level 2 12-15 2 factors with two evaluative points or 3 factors and 1 evaluative comment Level 3 l5-21 3 factors with two evaluative points Level 4 z7-25 4 faciors with two Evatuative pointr Level 3 26-30 4 factors with at teast three evatuative points Take special care here- without evaluation your highest mark will be 11/301. 9 1
  • 12. Potential)Essay)Questions) ) These%questions%come%from%a%variety%of%sources3%some%from%the%exam% board,%some%from%textbooks,%and%quite%a%few%you%might%recognise%from%the% lessons.%They’re%all%the%‘style’%of%essay%question%you%could%be%asked%in%the% exam%and%all%relate%to%the%exam%board%specification,%and%so%are%on%the% topics%you%could%be%asked%about%in%the%exam.%Have%a%go%at%planning%or% writing%out%answers%to%them3%I’m%happy%to%mark%anything%you’ve%done.% % N.B.%I%haven’t%put%marks%by%most%of%these,%as%generally%the%questions%can%be% considered%as%either%20%or%30%mark%ones3%the%style%of%response%you%should% give%is%pretty%much%the%same,%just%in%a%bit%more%detail%for%the%30%mark%ones.% % Remember%to%ensure%you%are%following%the%criteria%set%out%in%the%levels% guide%when%answering%essay%questions.% % The%questions%below%highlighted%in%bold%are%particularly%good%examples%of% essay%questions%because%they%are%more%vague%and%open3ended%than%some% of%the%other%questions,%and%so%I%would%encourage%you%to%focus%on%these%in% particular.% % % 3%3%3% % a. To)what)extent)is)economic)growth)compatible)with) sustainable)development?)(20)marks)) b. Evaluate)four)major)barriers)to)growth)and)development) experienced)by)LEDCs)(30)marks)) % 3% % Discuss)two)factors)that)are)likely)to)influence)the)levels)of)economic) growth)in)developing)countries) % 3% % Assess)the)causes)of)absolute)poverty)in)a)developing)country)of)your) choice) ) I) ) To)what)extent)is)reducing)the)number)of)people)living)in)absolute) poverty)sufficient)to)achieve)economic)development?) % % 3% % 10
  • 13. Evaluate)three)key)policies)to)help)promote)economic)development) in)LEDCs) % 3% % What,%in%your%opinion,%are%the%three%key%things%a%developing%country% government%should%do%to%help%to%increase%its%economic%growth%rate?% % 3% % ‘a%lack%of%access%to%financial%services%is%the%biggest%hindrance%on%economic% development%in%LEDCs’.%Discuss%this%statement.% % 3% % ‘South%Africa’s%Education%Inequality%can%only%be%solved%by%massive%public% investment%in%schools%and%teachers%in%rural%black%townships’.%Discuss.%% % 3% % Why%is%human%capital%considered%crucial%to%economic%development%in% LEDCs?% % 3% % How%might%a%developing%country%government%encourage%greater% investment%in%capital%accumulation?% What%problems%might%it%face%in%attempting%to%do%this?% Why%is%a%‘savings%gap’%a%major%problem%for%LEDCs?% % 3% % Using%the%example%of%Guinea,%assess%the%significance%of%political%instability% in%hampering%a%country’s%economic%development%% (for%this%you’ll%need%to%look%in%the%‘poor%governance’%folder%for%some% information%on%Guinea3%or%do%some%research%to%find%out%the%latest%situation% in%this%very%volatile%country)% % 3% % Why%does%a%lack%of%infrastructure%limit%a%country’s%development?% % 3% % Are%high%population%growth%rates%a%blessing%or%a%burden%for%developing% countries?% % 3% 11
  • 14. % Why%is%it%a%problem%for%countries%to%rely%on%exports%of%a%few%primary% products?% % 3% % What%can%developing%country%governments%do,%focusing%specifically%on%the% agricultural%sector,%to%promote%growth%&%development?% % 3% % Analyse%the%effectiveness%of%international%organisations%such%as%the%IMF% and%World%Trade%Organisation%in%helping%to%promote%economic% development% % 3% % Do%fairtrade%schemes%help%to%support%workers%in%developing%countries,%or% do%they%simply%distort%free%trade%and,%overall,%do%more%harm%than%good?% % 3% % Should%development%aid%be%provided%to%countries%most%in%need%or%those% best%equipped%to%make%good%use%of%the%funding?% % 3% % Should%the%debts%of%all%LEDC%governments%be%wiped%clean%to%enable%them% to%invest%further%in%developing%their%economies%and%lifting%their%citizens% out%of%poverty?% % 3% % How%can%tourism%benefit%developing%countries?% % What%are%some%of%the%drawback%of%tourism%for%developing%countries?% % 3% % ‘The%UN’s%Millennium%Development%Goals%do%more%harm%than%good’%Do%you% agree%with%this%statement?% % 3% % ‘The%global%targets%the%world%set%for%itself%five%years%ago%did%not%emerge% from%the%bottom%up,%as%the%sum%of%what%might%be%feasible%in%each%poor% country.%They%were%instead%imposed%from%the%top%down.%Their%fit%is%thus% often%rather%awkward.’% 12
  • 15. Discuss%whether%this%means%that%global%targets%such%as%the%Millennium% Development%Goals%do%more%harm%than%good.% % 3% % Income%distribution%in%Namibia%is%much%more%unequal%than%in%the%United% States.%What%might%be%the%reasons%for%this?% % 3% 13