With reference to a specific developing economy, and using appropriate diagrams where relevant, examine how the following factors contribute to economic development.
1. Education and health
2. The use of appropriate technology
3. Access to credit and micro-credit
4. The empowerment of women
5. Income distribution
Part A - use resource A
Choose either Afghanistan or Congo and explain how two or more of the poverty traps depicted in the handout apply to them.
Explain how other institutional, political, social and cultural factors may create obstacles to development – use examples in your explanation.
· Education and health - use Resource A and p356-8 of textbook
o The opposite of a vicious cycle is a virtuous cycle, i.e. one with favourable results. Create a virtuous cycle depicting the benefits of improved education.
o Education and health care services are merit goods (positive externalities of consumption). Outline the specific external benefits to developing countries which come from improved provision of these two things.
o What specific things could be done to improve these two areas.
o Use Nepal as an example of correlation between education/health and income levels.
· The use of appropriate technology - use p364-5 of textbook (good video on Kognity)
o What does "appropriate technology" mean?
o For countries with large populations, what problems do capital-intensive technologies cause?
o How does appropriate technology apply to both production and consumption? Include examples.
· Access to credit and micro-credit - use resource A and p362-3 of textbook
o What is credit? Why is access to credit so important from a development perspective?
o Why is a sound banking system essential for economic growth and development?
o Create a poverty cycle using LOW SAVINGS as both a beginning and finishing point.
o What specific difficulties exist for the poor in developing countries with regards to obtaining credit?
o What is micro-credit and how does this help development?
o Case-study – Grameen Bank, Kiva (case study/questions - Resource B)
· Empowerment of women (good video on Kognity)
o Use Resource C to give examples of gender inequality and the deprivations faced by women and girls in much of the world.
o What does "empowerment of women" mean?
o What benefits may a country expect if women become more empowered? Resource C and p365 of textbook
o What strategies could be implemented to ensure improved social and economic participation of woman?
· Income distribution - p365-6 of textbook
o How can high levels of income inequality hinder growth and development?