Essays
Explain the various types of aid which a developing country might receive:
There are two types of aid: humanitarian and development. Humanitarian aid provides food, medicine and emergency relief. Development aid improves human resources, technology and funds specific projects.
Aid can even be further broken down into: Long term aid, Tied aid, Project aid, Technical assistance aid and Commodity aid.
Aid is an effect means of promoting the development of poorer countries. Evaluate this statement:
Advantages of aid: Improves health education and welfare, Better technology and capital accumulation, and Stimulates economy and foster investment.
Disadvantages of aid: Encourages corruption, Encourages dependency, Wasteful projects, Increased indebtedness.
Explain 3 institutional factors that may contribute to potential economic growth in developing countries:
Natural factors: Country’s endowments in natural resources
Human factors and human capital: Skills, experience, education and health
Physical capital: Accumulation of factors of production, roads, and infrastructure
Institutional factors: Banking and microcredit
Evaluate the view that economic growth will lead to economic development:
Consequences of Growth:
+Higher incomes
+Higher government revenue
+Improved welfare
-Greater inequality
-Negative externalities
Types of Growth to Avoid: Jobless growth, Ruthless growth, Futureless growth, Voiceless growth
