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 virtuous cycles depicting the benefits of improved education and improved health.
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
o What does this mean in terms of both production and consumption?
· Access to credit and micro-credit - use resource A and p362-3 of textbook
o What is credit?
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
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 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?