​​CONSEQUENCES OF ECONOMIC GROWTH AND THE BALANCE BETWEEN MARKETS AND INTERVENTION

  • Discuss the positive outcomes of market-oriented policies (such as liberalised trade and capital flows, privatisation and deregulation), including a more efficient allocation of resources and economic growth.
  • Discuss the negative outcomes of market-oriented strategies, including market failure, the development of a dual economy and income inequalities.
  • Discuss the strengths of interventionist policies, including the provision of infrastructure, investment in human capital, the provision of a stable macroeconomic economy and the provision of a social safety net.
  • Discuss the limitations of interventionist policies, including excessive bureaucracy, poor planning and corruption.
  • Explain the importance of good governance in the development process.
  • Discuss the view that economic development may be best achieved through a complementary approach, involving a balance of market-oriented policies and government intervention.

evaluation of growth and development strategies

The balance between markets and intervention

markets_and_intervention.docx
File Size: 22 kb
File Type: docx
Download File

The path to economic development is growing more treacherous, again

IN THE 1990S economists had almost given up on the developing world. Although individual countries, like Singapore or South Korea, occasionally scaled the income ladder, the overall picture was, in the words of Lant Pritchett, a development economist at Harvard University, "divergence, big-time" between advanced economies and the rest.

Development-impact bonds are costly, cumbersome-and good

IF A girl in a poor country goes to school, she will probably have a more comfortable life than if she stays at home. She will be less likely to marry while still a child, and therefore less likely to die in childbirth.

Why globalisation may not reduce inequality in poor countries

GLOBALISATION has made the planet more equal. As communication gets cheaper and transport gets faster, developing countries have closed the gap with their rich-world counterparts. But within many developing economies, the story is less rosy: inequality has worsened. The Gini index is one measure of inequality, based on a score between zero and one.