Questions and Answers of Development Economics

Using the model studied in Section 7.2.8, explain why better information regarding borrowers and their credit histories is likely to reduce the adverse effects of inequality on output.Data from
Consider a labor surplus economy producing a single output, which can be consumed (as food) or invested (as capital). Labor, once employed, must be paid a fixed wage of w which is fully consumed. All
What were the central findings of Melissa Dell’s research on the mita system, and what is their significance for the study of economic development?
In what ways do developing countries depend on rich countries? In what ways is the opposite true?
Consider the most recent economic performance in China. To what extent do you think it confirms, and to what extent calls for adjustments in, the analysis in the China case study?
Suppose that potential migrants make decisions only based on comparisons of their expected incomes. Now suppose the rural wage is $1 per day. Urban modern sector employment can be obtained with 0.25
Explain the concept of urban bias. What policies are associated with it, and what are their likely effects on urban and rural areas?
Now explain the economic benefits of concentration of economic activity in cities. How are various costs of doing business likely to be affected? Why are some of the potential benefits of
Here are some questions to review for the Progresa/Oportunidades Program examined in the end-ofchapter case study:a. What is the Progresa/Oportunidades Program, and what does it try to accomplish?b.
What basic problems does the case study evoke on agricultural extension for women in Kenya? What special strategies may be used to address them?
Consider growth diagnostics. Constraint categories are the boxes from which no further arrows emanate.Can you think of a fundamental constraint not included in the ten end boxes? (That is, an
In growth diagnostics, to determine the binding constraint there are many potential clues in economic behaviour. Specifically, we can expect that people will attempt to bypass the constraint; for
In microeconomics, goods for which demand falls when income increases are known as “inferior goods.” In development economics, evidence shows that when income increases, fertility (births per
What are the strengths and weaknesses of policy options for nations whose populations begin declining before they become a high-income country?
Suppose that a study finds that there is complementarity in fertility decisions. What would this mean? What are the possible implications?
Here are some questions to review for the Progresa/Oportunidades Programme, examined in the end-of-chapter case study:a. What is the Progresa/Oportunidades Programme, and what does it try to
Several decades ago, Gunnar Myrdal stated:“It is in the agricultural sector that the battle for long-term economic development will be won or lost.” Consider the meaning of this statement, and
What basic problems does the case study evoke on agricultural extension for women in Kenya and Uganda? What special strategies may be used to address these problems?
What is the international community doing to assist the least-developed countries (such as Niger)with resilience to climate change? Can you identify any limitations to this assistance?
What insights can be found from a comparison of Haiti and the DR for the potential role of environment in economic development?
Discuss the potential role of NGOs in relation to the government and private sectors. What are the most important potential areas of comparative advantage of NGOs? What are the most
If a reform improves everyone’s income on average, why might people vote against it? You may wish to provide one or more numerical examples to illustrate your answer.
Explain the differences between characteristics of public goods and private goods and services. How can goods and services provided by nongovernmental organisations be considered in this framework?
What lessons can be learned for low-income countries from Botswana’s successes?
What can be learned from the historical experiences of Costa Rica and Guatemala about internal conflicts, and about both positive and negative foreign influences?
Identify and describe the key explanations for China’s development success as raised in the China case study. Review some of the recent news and research on China. To what extent do you think any
What aspects of population policy alternatives— including their strengths and weaknesses—are illustrated by the cases of China and India?
What kinds of market failures are present in the economic self-discovery framework, and how may they be overcome?
Modern economic models sometimes require strong assumptions. What do you think are some of the trade-offs between a more rigorous, logically cohesive model with strong assumptions but clear
Can you think of an example of O-ring production from everyday life? Do you think your example is a good metaphor for development problems?
One of the characteristics of some developing economies is the relatively low level of trust of people outside one’s extended family. How might the models explored in this chapter shed light on
Why is the government sometimes a part of the problem of coordination failure rather than the solution? Does this make the problem hopeless?What could be done in this case?
Why might high levels of inequality lead to lower rates of growth and development? Why might it be difficult to get out of this kind of trap?
The word trap suggests that there may be a way to escape. Do you think developing countries can escape all of the traps described in this chapter?Which ones would be most difficult to escape?How
What role do you think international trade and foreign investment can play in solving some of the problems identified in the big push model? In the O-ring model? What limitations to your arguments
Can you think of additional examples of complementarities from everyday life? Does the S-shaped curve of Figure4.1 shed any light on them? Do you think your examples help as a metaphor for economic
What fundamental factors in human development are brought out in the comparative case study of Bangladesh and Pakistan?
In what ways is the concept of the developing world a useful and informative one? In what ways could it be an overgeneralisation or even misleading for some purposes?
Regardless of your specific views about the SDGs, do you think it is better to have these goals (or perhaps even any goals) than not to specify international development goals? How, or why not?
To what extent do the same criticisms apply to SDGs as were raised in the past concerning the MDGs? If you think one or more criticisms are addressed—at least in part—please explain (for example,
What are some key similarities and differences between the SDGs and the earlier MDGs?
What forces may be at work in giving the Sustainable Development Goals, like the Millennium Development Goals before them, such a high profile in international economic relations?
Briefly, what major relationships can you identify between Sen’s capabilities approach on one hand and SDGs on the other hand? To what extent is the SDG list close to Sen’s framework? How does it
In this chapter we have already been addressing some of the most basic questions for development economics. What is the real meaning of development?To what extent do the Sustainable Development Goals
Besides those discussed in the text, propose at least one other potential functioning (in the sense of Amartya Sen), and briefly justify in what way your suggested functioning is important.
How does the concept of “capabilities to function” help us gain insight into development goals and achievements? Is money enough? Why or why not?
What would achieving the vision of ending extreme income and multidimensional poverty “look like,” beyond raising minimum family income to above the poverty line to be able to buy basics? (To
It has been said that ending extreme poverty and achieving genuine development are possible but not inevitable and that this gives the study of economic development its moral and intellectual
Why is a strictly economic definition of development inadequate? What do you understand economic development to mean? Can you give hypothetical or real examples of situations in which a country may
Why is an understanding of development crucial to policy formulation in developing nations? Do you think it is possible for a nation to agree on a rough definition of development and orient its
Briefly describe the various definitions of the term ‘development’ encountered in the text. What are the strengths and weaknesses of each approach?Do you think that there are other dimensions of
Why is economics central to an understanding of the problems of development?
Why is economics central to an understanding of the problems of development?
Is the concept of the developing world a useful one? Why or why not?
What do you hope to gain from this course on development economics?
Briefly describe the various definitions of the term development encountered in the text. What are the strengths and weaknesses of each approach? Do you think that there are other dimensions of
Why is an understanding of development crucial to policy formulation in developing nations? Do you think it is possible for a nation to agree on a rough definition of development and orient its
Why is a strictly economic definition of development inadequate? What do you understand economic development to mean? Can you give hypothetical or real examples of situations in which a country may
How does the concept of “capabilities to function” help us gain insight into development goals and achievements? Is money enough? Why or why not?
What forces may be at work in giving the Millennium Development Goals such a high profile in international economic relations?
What critical issues are raised from the examination of development problems and prospects facing Brazil?
It has been said that ending extreme poverty and achieving genuine development are possible but not inevitable and that this gives the study of economic development its moral and intellectual
For all of their diversity, many less developed countries are linked by a range of common problems. What are these problems? Which do you think are the most important? Why?
Explain the distinction between low levels of living and low per capita incomes. Can low levels of living exist simultaneously with high levels of per capita income? Explain and give some examples.
Can you think of other common (not necessarily universal but widespread) characteristics of less developed countries not mentioned in the text? See if you can list four or five and briefly justify
Do you think that there is a strong relationship among health, labor productivity, and income levels? Explain your answer.
What is meant by the statement that many developing nations are subject to “dominance, dependence, and vulnerability” in their relations with rich nations? Can you give some examples?
Explain the many ways in which developing countries may differ in their economic, social, and political structures.
What are some additional strengths and weaknesses of the Human Development Index as a comparative measure of human welfare? If you were designing the HDI, what might you do differently, and why?
”Social and institutional innovations are as important for economic growth as technological and scientific inventions and innovations.” What is meant by this statement? Explain your answer.
Why do many economists expect income convergence between developed and developing countries, and what factors would you look to for an explanation of why this has occurred for only a limited number
What are good economic institutions, why do so many developing countries lack them, and what can developing countries do to get them. Justify your answer.
Which measure shows more equality among countries around the world—GNI calculated at exchange rates or GNI calculated at purchasing power parity? Explain.
”South Asia has a lower income per capita than sub-Saharan Africa.” Comment on the validity of this statement.
What is the meaning of a “colonial legacy”? Discuss any disadvantages and possible advantages.
State five characteristics of the developing world. Discuss diversity within the developing world on these characteristics in relation to the developed world.
Discuss the differences between the traditional HDI in comparison to the “new” (NHDI) formulation.In what ways do you think either one is a better measure of human development?
Explain the essential distinctions among the stages-of-growth theory of development, the structural-change models of Lewis and Chenery, and the theory of international dependence in both its
Explain the meaning of dualism and dual societies.Do you think that the concept of dualism adequately portrays the development picture in most developing countries? Explain your answer.
Some people claim that international dualism and domestic dualism are merely different manifestations of the same phenomenon. What do you think they mean by this, and is it a valid
What is meant by the term neoclassical counterrevolution?What are its principal arguments, and how valid do you think they are? Explain your answer.
Given the diversity of developing countries, do you think that there could ever be a single, unified theory of development? Explain your answer.
Is the neoclassical, free-market theory necessarily incompatible with dependence theory? How might these two approaches work together?
Can you think of additional examples of complementarities from everyday life? Does the S-shaped curve of Figure 4. 1 shed any light on them? Do you think your examples help as a metaphor for economic
What role do you think international trade and foreign investment can play in solving some of the problems identified in the big push model? In the O-ring model? What limitations to your arguments
The word trap suggests that there may be a way to escape. Do you think developing countries can escape all of the traps described in this chapter?Which ones would be most difficult to escape? How
Why might high levels of inequality lead to lower rates of growth and development? Why might it be difficult to get out of this kind of trap?
Why is the government sometimes a part of the problem of coordination failure rather than the solution?Does this make the problem hopeless?What could be done in this case?
One of the characteristics of some developing economies is the relatively low level of trust of people outside one’s extended family. How might the models explored in this chapter shed light on
Can you think of an example of O-ring production from everyday life? Do you think your example is a good metaphor for development problems?
Modern economic models sometimes require strong assumptions. What do you think are some of the trade-offs between a more rigorous, logically cohesive model with strong assumptions but clear
As you read later chapters, think about whether the models described in this chapter are useful in shedding additional light on the nature of problems considered. Some of the later problems you might
Select a developing country that interests you and search for evidence suggesting which factors are the binding constraint on growth. (For inspiration, see the sources in Box 4. 2.)Box 4. 2 El
Most development economists now seem to agree that the level and rate of growth of GNI and per capita income do not provide sufficient measures of a country’s development. What is the essence of
Distinguish between size and functional distributions of income in a nation. Which do you conclude is the more appropriate concept? Explain your answer.
What is meant by absolute poverty? What measures of income poverty are favored by development economists? How do these measures differ from the UNDP’s Multidimensional Poverty Index?Why should we
What are the principal economic characteristics of high-poverty groups? What do these characteristics tell us about the possible nature of a povertyfocused development strategy?
Describe Kuznets’s inverted-U hypothesis. Discuss the conceptual merits and limitations of this hypothesis for contemporary developing countries.
In the text, when we examined statistics from a wide range of developing countries. We found that growth does not guarantee poverty reduction;while higher income is clearly associated with less
What is the relationship between a Lorenz curve and a Gini coefficient? Give some examples of how Lorenz curves and Gini coefficients can be used as summary measures of equality and inequality in a

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