DEVELOPMENT ECONOMICS

ASSIGNMENT # 1

1. What do you hope to gain from this course on development economics?

2. 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 development not mentioned in the text? If
so, describe them. If not, explain why you believe that the text description of
development is adequate.
3. 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 strategies accordingly?
4. 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 be developing economically but
may still be underdeveloped?
5. How does the concept of “capabilities to function” help us gain insight into
development goals and achievements? Is money enough? Why or why not?
6. What forces may be at work in giving the Millennium Development Goals such a
high profile in international economic relations?
7. Critically evaluate Harrad Domar Growth model and Two sector surplus labor
model of W. Arthur Lewis.

8. 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?
9. 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.
10. 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 them.
11. Do you think that there is a strong relationship among health, labor productivity,
and income levels? Explain your answer.
12. 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?
13. Explain the many ways in which developing countries may differ in their
economic, social, and political structures.
14. 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?
15. “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.

CASE STUDIES
1. What critical issues are raised from the examination of development problems
and prospects facing Brazil?