TEST BANK Economic Development 13/E Michael Todaro
m m m m m m
Chapter 1: Introducing Economic D
m m m m
evelopment: A Global Perspective
m m m
◼ Key Concepts
m
Asmcuriousmasmstudentsmwho mregistermto mtakemDevelopmentmEconomicsmmay mbe,mtheirmknowledge man
d mexperience mof mthemdevelopingmworld mwillmvary mwidely.mThemfirstmmain mpointmof mChapterm1 mismto me
mphasise mhowmdifferentmlifemin mthemdevelopingmworld mis.mNewmin mthem13th medition mismamsystematic md
escription mof mfourmstylised mstratamof mlivingmstandardsmfrommextremempoverty mto mrich mbased mon mRoslin
g,
Rosling,mand mRoslingmRonnlund’smbook mFactfulness.mThismismfollowed mby mamdiscussion mof mthemWorl
d mBank’smclassification mof meconomiesmby mrangesmof maveragemnationalmincomemusingmgrossmnationalmi
ncomem(GNI)mstatistics.
Themsecond mpointmismto mprovide man moverviewmof mthemnaturemof mdevelopmentmeconomicsmasmamfield.m
Amdefense mof mdevelopmentmeconomicsmasmamdistinctmfield,mrathermthan man magglomeration mof mothermec
onomicsmsubfields,mismoffered.mAmmajormthememof mthembook,mthatmdevelopmentmeconomicsmmustmenc
ompassmthemstudy mof minstitutionalmand msocial,masmwellmasmeconomic,mmechanismsmformmodernisingma
n meconomy mwhilemeliminatingmabsolute mpoverty,mismintroduced.
Sectionsm1.5mand m1.6 mlooksmdeeperminto mthemmeaningmof mdevelopmentmand mamviewmofmdevelopmentmth
atmismmultidimensional.mAmartyamSen’sm“Capabilities” mapproach mismdiscussedmin mSection m1.5.mInmSect
ionm1.6,mdatamcollected min mamGallup mWorld mPollmon mthemrelationship mbetween mhappinessm(asmmeasured
mby mGallup’s
lifemsatisfaction m“ladder”mquestion mand mrealmpermcapitamincome)mand mothermresearch mon mhappiness/lif
emsatisfaction mismdiscussed.mThemlevelmof mhappinessmismnotmonly mrelated mto mlevelmof mincomembutmto mot
hermfactorsm such m asmdemocratic mfreedomsm and m them quality m of m socialm relationships.m Them rolem of m no
rmative
valuesmin mdevelopmentmeconomics—
amsubjectmdealingmwith mhuman mmisery mand mhuman mpotential,mwith mequity masmwellmasmefficiency,mwith
mculturalmchange mthatmcauses mlosses masmwellmasmgains, mand mwith mtransfer
asmwellmasmcreation mof mwealth—ismalso mstressed.
Themconclusion mismthatmdevelopmentmismboth mamphysicalmreality mand mamstatemof mmind.mThemmeaningm
and mobjectivesmof mdevelopmentmincludemthemprovision mof mbasicmneeds,mreducingminequality,mraisingml
ivingmstandardsmthrough mappropriate meconomicmgrowth,mimprovingmself-
esteemmin mrelation mto mthemdeveloped mcountries,mand mexpandingmfreedommof mchoice min mthemmarketman
d mbeyond.
Section m1.7 mpresentsman min mdepth mexamination mof mthemUN’smSustainable mDevelopmentmGoalsm(SDG
s).mThismincludesmammoremcomprehensive mlistmof mthemgoalsmthemselvesm(appearingmin mTablem1.1)mand
ma mdiscussion mof mthe mshortcomings mof mthe mSDGs. mIn mSection m1.8, mthe mplan mof mthe mbook mismintroduce
d mthrough m 32 m criticalm questionsm of m developmentm economics.m Dependingm on m them amountm ofm ma
terial
covered mby mtheminstructor,mstudentsmshould mbemablemto mintelligently maddressmmostmof mthesemquestions
mby mthe mend mof mthe mcourse. mFinally, ma mcomparative mcase mstudy mof mPakistan mand mBangladesh mismprese
nted.
, Todaro mandmSmith,mEconomicmDevelopment,m13e,mInstructor’smMan
ual
◼ Lecture Suggestions
m
Itm mightm bem bestm to m begin m with m am discussion m of m them immense m scalem of m transformation m in m them world
economy.mThemlatemHansmRosling’smvideo m“200 mcountries,m200 myears,m4 mminutes” m(readily mavailable
mon mYouTube)mcan mbe mused mto mconfirm mthis mpointmin man mentertainingmway. mItmmightmalso mbe mhelpfulm
to mhighlightmthatmrealmgrossmworld mproductmpermcapitamhasmalmostmtripled mbetween m1960 mand m2018 m(i
mplyingm growth m perm yearm of m 1.85%)m and m ism 33% m higherm than m itm wasm atm them turn m of m thism cent
ury
(implyingmannualmgrowth mof m1.56% mfromm2000 mto m2018).mThismdatamcan mbemfound mon mthemSaintmLou
ismFederalmReserve’smwebsite min mthemFederalmReserve mEconomic mDatabase m(ormFRED).
Despite msuch madvances,mtremendousmdisparitiesmcontinuemto mexist.mIn mtermsmof measily maccessible mstat
isticsm them PEWm Researchm Centre’sm “World m Population m bym Income”m providesm anm interactive m map
showingmthemsharemof meconomies’mpopulation mwho maremeconomically mpoor,mlowmincome,mmiddleminc
ome,muppermmiddlem income,mand mhigh mincome.m Whilemregrettably mthem datam provided mismform 2011,mi
t
echoesmwhatmTodaro mand mSmith mpointmoutmin mthemtext,mthatmmoremthan m75% mof mthemworld’smpopulati
on mlivemon m$15 mormlessmamday m(ormaboutm$5,500 mpermperson mpermyear).mSeveralmexcellentmbooksmatte
mptmto mgivemsomemideamof mthemrangemof mlivingmstandardsmfound mthroughoutmthemworld.mFormexample
,mThemMaterialm World m by m Peterm Menzell.m Thism book m presentsm photographic m profilesm of m typical
m families
around mthemworld mwith mallmof mtheirmpossessionsmplaced min mfrontmof mtheirmhomes.mAsmonemgoesmfromm
onemfamily mto mthemnextmtheminstructormhasmthemopportunity mto mhighlightmthemimportantmdifferencesmb
etween mnationsmand mregionsmand mto mtouch mon mkey missuesmof mgrowth mand mdevelopment.
Onem of m them key m strengthsm of m thism chapterm ism thatm itm doesm notm focusm solely m on m them hard m numbersm that
supposedly mmeasuremdevelopment.mThemdiscussion mof mSen’smCapabilitiesmapproach mand mthemfarmless
mthan mperfectmrelationship mbetween mincome mand mhappiness mare mwellmworth mspendingma mfairmamountm
of mclassm timem exploring.m Classm timem should malso m bem spentm discussingm them32 mcriticalmquestionsm lis
ted m on
pagesm21–
23 mof mthemtextmand mthen maskingmstudentsm to midentify m3 morm4 mquestionsmthatmthey maremparticularly minte
rested min mexploring.mAskingmeach mstudentmto mlistmwhatmthey mconsidermto mbem“critically” mcriticalmques
tionsmon mamsheetmof mpaper,mcollectingmtheirmresponses,mand mthen mtryingmto mdirectmthemrestmof mthemterm
mto maddressingmthe mmostmcommonly mmentioned mcriticalmquestions mformthatmclass mwillmbe mhelpful
in mfurthermdrawingmstudentsmin mand mholdingmtheirmattention mthroughoutmthemterm.
Atmthismsamempoint,mtheminstructormmightmalso mwish mto mgetmsomemideamof mstudents’mexperiencesm trav
elingmto mdevelopingmcountriesmand,min masmsubtlemamway masmismpossible,mdeterminemhowmshaky mtheirmu
nderstandingmof mthemwidermworld mis.mTheminstructormperhapsmcould mdrawmon mhismormhermown mexperie
ncesmand mgivemsomembackground masmto mhowmhemormshemfirstmbecame minterested min mDevelopment
Economics.mThismmay m– mthrough mthemkindsmof mquestionsmasked m–
mhelp mthe minstructormfurthermgauge mstudents’mlevelmof msophistication min mthismarea. mThis mismnotmsomet
hingmthatmshould mbemor,mcan,mbemsettled min mthemfirstmonemormtwo mclassesmand mwillmdevelop movermthemc
oursemof mthemterm.
In mmany muniversities,mthemeconomicmdevelopmentmcoursemwillmbemfilled mwith mstudentsmwho maremnotm
majoringmin meconomics.mThesemstudentsmmay mcomemfrommdifferentmcollegesmwith mmajorsmsuch masman
thropology,msociology,mormpoliticalmsciencemormbusinessm(management,mfinance,metc.).mThey mmay mha
vemhad masmlittlemasmonemsemestermof mintroductory meconomics.mGiven mthatmyou maremteachingman mecono
micsmclass,myou mmay mwish mto mremind mthemstudentsmof mthismfactmand moffermwhatevermhelp myou mcan.mG
iven mvideo mcapturemsoftware,myou mmightmconsidermrecordingmsomemprimersmthatmthen mcould mbemmad
emavailablem to m studentsm through m coursem managementm softwarem such m asm Blackboard m orm Moodle.
m You
, Todaro mandmSmith,mEconomicmDevelopment,m13e,mInstructor’smMan
ual
certainly mshould musemthemfirstmclassmormtwo mto msetmthemstagemformthemapproach myou mwillmtake,mwhethe
rmitmwillmbemmoreminterdisciplinary, mmoremeconomic,mmoremmathematicalmand mquantitative,mmorem hi
storical,mormsomemcombination.
Emphasise mthatmdevelopmentm economicsm isman mexcitingmsubjectm to mstudy mand mteach mbecausemitmdoe
sm notmfocusmjustmon monemcountry,mbutmon mallmless-
developed mcountries.mFurthermemphasise mthatmyou mwillmtry mto mteach mkey mconceptsmand mideasmwhich m
can mbemapplied mto mthemexperiencesmof mmany mdevelopingmcountries.mThesemconceptsm and mideasmaremi
mportantm formunderstandingmwherem themdevelopingmcountriesmaremtoday,masmwellmasmwhatmtheirmopti
onsmaremformthemfuture.mYou mmightmalso mwish mto memphasise m thatm therem arguably m ism no m otherm aream o
f m economicsm thatm ism morem relevantm to m them majority mof mthemworld’smpeople.
Asmalready mmentioned,mthem32 mcriticalmquestionsmcan mbemused mto mmotivatemstudentminterestmin mthemsu
bjectmasmwellmasmpresentman moverviewmof mwhatmthemclassmismallmabout.mItmcan mbememphasised mthatmthe
remismno monemanswermto mthemgeneralmquestion mof mwhy msomemcountriesmaremmoremdeveloped mthan moth
ers.mTheremaremasmmany mdifferentmopinionsmon mwhatmamless-
developed mcountry mshould mdo mto mbecomemmoremdeveloped.mAmgood mapproach mismto mpresentmdifferin
gmviewpointsmthroughoutmthemcoursemand mletmthemstudentsmmake mup mtheirmmindsmon mtheirmown.
◼ Discussion Topics m
Encouragingmclassmparticipation mismamgood mway mto mmotivatemthemstudentsmand mmakemthemmfeelminvol
ved min mthemlearningmprocess.mThemfirstmfewmweeksmof mclassmin mparticularmaremconducive mto mthismsortm
of mexercise.mTwo mideasmformdiscussionsmatmthismstagemare:
• Whatmismthemmeaningmof meconomicmdevelopment? mWhy mdo mwemnotmseemamstrongermrelationship mb
etween mincomemand mhappiness,mespecially moncemincomemhasmrisen mabovem$20,000 mamyearmpermperso
n?
• Ismitmpossible mformthemwholemworld mto mbemdeveloped?mThismcan mbeman minterestingmquestion mto mask ma
tmthembeginningmof mthemcourse,moncemenvironmentmand mdevelopmentmhavembeen mcovered m(Chapterm
10),mand mthen magain matmthemend mof mthemcourse.
◼ Sample Questions
m
ShortmAnswer
1. Provide mamdefinition mof mdevelopmentmeconomics. mJustify myourmchoicemcarefully.
Answer:m SeemSection m4 m(pagesm8–
10)mformsomemideasmaboutmhowmthemstudentsmmightmanswermthismquestion.mThey mshou
ld min msomemway msay mthatmdevelopmentmeconomicsmismmoremthan mjustmgrowth min mGD
P.
2. In mdefiningmdevelopmentmto mincludemmoremthan mjustmthemgrowth mof mpermcapitamincome,mtheremis
man mimplicitmassumption mthatmthe mgrowth mof mpermcapita mincome malone mismnotmsufficientmto mguara
nteem themreduction mof mpoverty mand mthemgrowth mof mself-
esteem.mIsmitmpossible mthatmtheremcould mbemgrowth mof mpermcapitamincome mwithoutmthemachievem
entmof mthesemothermobjectives?
, Todaro mandmSmith,mEconomicmDevelopment,m13e,mInstructor’smMan
ual
Answer:mPermcapitamincomemcan mshowmgrowth meven mwhen mthatmgrowth mdoesmnotmtouch mvastmp
ortionsmof mthempopulation.mThismpointmismclearly mmademinmChapterm5 mand mismsuggested
min mthe mcomparative mcase mstudy mof mPakistanmand mBangladesh. mThe mgrowth mmay mbe mce
ntered min monemareamormsectormof mthemeconomy,mformexample.mAlso,mmostmdeveloped mc
ountriesmhave,matmsomemtimemin mtheirmhistories,mintroduced mpoliciesmemphasisingmequal
ity.
3. In mwhatmway mismdevelopmentmeconomicsmgreatermin mscopemthan mtraditionalmeconomics?
Answer:mDevelopmentmeconomicsmmustmencompassmthemstudy mof minstitutional,mpolitical,mand ms
ocialmasmwellmasmeconomicmmechanismsmformmodernisingman meconomy mwhilemelimina
tingmabsolutempoverty mand mtransformingmstatesmof mmind masmwellmasmphysicalmconditio
ns.mMoremdetailsmfound min mthemchapter.
4. Makemamcasemthatmdevelopmentmeconomicsmmightmbemmerely mamcombination mof mallmthemothermsu
bfieldsmof meconomics,monly mapplied mto mlow-income mcountries.
Answer:m SeemQuestion m3 mabove.
5. Whatmdo myou mthink maremthemmostmseriousmobstaclesmto mfurthermprogressmin mthemdevelopingmworld?
Answer:m Themmain mpointmheremismto mensuremthatmstudentsmaremthinkingmcarefully maboutmthemiss
uesmraised min mthemtext.mYou mmay malso mwish mto mdrawmfrommthemcriticalmquestionsmon mp
agesm21–23.
6. In mreviewingmdiscussionsmof mlifemin mdevelopingmcountries,mwhatmismitmaboutmlifestylesmin mthemlo
w-mincomemcountriesmcompared mwith mlifestylesmin mthemhigh-
income mcountriesmthatmmostmstrikesmyou?mWhy?
Answer:m Thismisman mopen-ended mquestion mto mstimulate mreflection.
7. Do myou mthink mitmismin mthemmaterialminterestsmof mhigh-incomemcountriesmto mhelp mlow-
income mcountriesmimprove mtheirmeconomic mperformance? mWhy mormwhy mnot?
Answer:mAnswersmmightmtouch mon mincreasingmthemmarketmformproductsmin mwhich mhigh-
incomemcountriesmhavemamcomparativemadvantage,mreducingmthemdangersmof mregionalm
warmand mterrorism,mreducingminternationalmtransmission mof mdisease,mand mcurbingminte
rnationalmmigration.
8. Howmismhappinessmrelated mto mdevelopment?
Answer:mAnswersmshould mmakemreferencemto mthemcorrelation mbetween mhappinessmand mincome m
levelmasmwellmasmtouch mon mthemconnection mbetween mhappinessmand msocialmrelationshi
ps,mpersonalmand mdemocratic mfreedoms,mreligiousmbeliefs,mand mhealth,mamongmothermf
actorsmlisted mon mpagem12.mFurther,manswersmshould mincludemamdiscussion mon mhappine
ssmasm beingmampartmof mAmartya mSen’smconceptmof mfunctionings.
9. Comparemand mcontrastmthemUN’smMillenniummDevelopmentmGoalsm(MDGs)m2000–
2015 mwith mthemSustainable mDevelopmentmGoalsm(SDGs)mputmforward min m2015?mWhatmdo myou mc
onsidermto mbemthemmostmimportantmof meithermsetmof mgoalsmand mwhy?
Answer:m Themanswermshould mstressmthatmboth msetsmof mgoalsmcovermambroad mrangemof mobjectives
mboth meconomic mand msocial. mThese mwere mputmforward mso mthatmdevelopingmcountries m
would mhavemnumericalmtargetsmagainstmwhich mtheirmprogressmcould mbemjudged mand,m
wheremwarranted,mappropriate massistance moffered.
m m m m m m
Chapter 1: Introducing Economic D
m m m m
evelopment: A Global Perspective
m m m
◼ Key Concepts
m
Asmcuriousmasmstudentsmwho mregistermto mtakemDevelopmentmEconomicsmmay mbe,mtheirmknowledge man
d mexperience mof mthemdevelopingmworld mwillmvary mwidely.mThemfirstmmain mpointmof mChapterm1 mismto me
mphasise mhowmdifferentmlifemin mthemdevelopingmworld mis.mNewmin mthem13th medition mismamsystematic md
escription mof mfourmstylised mstratamof mlivingmstandardsmfrommextremempoverty mto mrich mbased mon mRoslin
g,
Rosling,mand mRoslingmRonnlund’smbook mFactfulness.mThismismfollowed mby mamdiscussion mof mthemWorl
d mBank’smclassification mof meconomiesmby mrangesmof maveragemnationalmincomemusingmgrossmnationalmi
ncomem(GNI)mstatistics.
Themsecond mpointmismto mprovide man moverviewmof mthemnaturemof mdevelopmentmeconomicsmasmamfield.m
Amdefense mof mdevelopmentmeconomicsmasmamdistinctmfield,mrathermthan man magglomeration mof mothermec
onomicsmsubfields,mismoffered.mAmmajormthememof mthembook,mthatmdevelopmentmeconomicsmmustmenc
ompassmthemstudy mof minstitutionalmand msocial,masmwellmasmeconomic,mmechanismsmformmodernisingma
n meconomy mwhilemeliminatingmabsolute mpoverty,mismintroduced.
Sectionsm1.5mand m1.6 mlooksmdeeperminto mthemmeaningmof mdevelopmentmand mamviewmofmdevelopmentmth
atmismmultidimensional.mAmartyamSen’sm“Capabilities” mapproach mismdiscussedmin mSection m1.5.mInmSect
ionm1.6,mdatamcollected min mamGallup mWorld mPollmon mthemrelationship mbetween mhappinessm(asmmeasured
mby mGallup’s
lifemsatisfaction m“ladder”mquestion mand mrealmpermcapitamincome)mand mothermresearch mon mhappiness/lif
emsatisfaction mismdiscussed.mThemlevelmof mhappinessmismnotmonly mrelated mto mlevelmof mincomembutmto mot
hermfactorsm such m asmdemocratic mfreedomsm and m them quality m of m socialm relationships.m Them rolem of m no
rmative
valuesmin mdevelopmentmeconomics—
amsubjectmdealingmwith mhuman mmisery mand mhuman mpotential,mwith mequity masmwellmasmefficiency,mwith
mculturalmchange mthatmcauses mlosses masmwellmasmgains, mand mwith mtransfer
asmwellmasmcreation mof mwealth—ismalso mstressed.
Themconclusion mismthatmdevelopmentmismboth mamphysicalmreality mand mamstatemof mmind.mThemmeaningm
and mobjectivesmof mdevelopmentmincludemthemprovision mof mbasicmneeds,mreducingminequality,mraisingml
ivingmstandardsmthrough mappropriate meconomicmgrowth,mimprovingmself-
esteemmin mrelation mto mthemdeveloped mcountries,mand mexpandingmfreedommof mchoice min mthemmarketman
d mbeyond.
Section m1.7 mpresentsman min mdepth mexamination mof mthemUN’smSustainable mDevelopmentmGoalsm(SDG
s).mThismincludesmammoremcomprehensive mlistmof mthemgoalsmthemselvesm(appearingmin mTablem1.1)mand
ma mdiscussion mof mthe mshortcomings mof mthe mSDGs. mIn mSection m1.8, mthe mplan mof mthe mbook mismintroduce
d mthrough m 32 m criticalm questionsm of m developmentm economics.m Dependingm on m them amountm ofm ma
terial
covered mby mtheminstructor,mstudentsmshould mbemablemto mintelligently maddressmmostmof mthesemquestions
mby mthe mend mof mthe mcourse. mFinally, ma mcomparative mcase mstudy mof mPakistan mand mBangladesh mismprese
nted.
, Todaro mandmSmith,mEconomicmDevelopment,m13e,mInstructor’smMan
ual
◼ Lecture Suggestions
m
Itm mightm bem bestm to m begin m with m am discussion m of m them immense m scalem of m transformation m in m them world
economy.mThemlatemHansmRosling’smvideo m“200 mcountries,m200 myears,m4 mminutes” m(readily mavailable
mon mYouTube)mcan mbe mused mto mconfirm mthis mpointmin man mentertainingmway. mItmmightmalso mbe mhelpfulm
to mhighlightmthatmrealmgrossmworld mproductmpermcapitamhasmalmostmtripled mbetween m1960 mand m2018 m(i
mplyingm growth m perm yearm of m 1.85%)m and m ism 33% m higherm than m itm wasm atm them turn m of m thism cent
ury
(implyingmannualmgrowth mof m1.56% mfromm2000 mto m2018).mThismdatamcan mbemfound mon mthemSaintmLou
ismFederalmReserve’smwebsite min mthemFederalmReserve mEconomic mDatabase m(ormFRED).
Despite msuch madvances,mtremendousmdisparitiesmcontinuemto mexist.mIn mtermsmof measily maccessible mstat
isticsm them PEWm Researchm Centre’sm “World m Population m bym Income”m providesm anm interactive m map
showingmthemsharemof meconomies’mpopulation mwho maremeconomically mpoor,mlowmincome,mmiddleminc
ome,muppermmiddlem income,mand mhigh mincome.m Whilemregrettably mthem datam provided mismform 2011,mi
t
echoesmwhatmTodaro mand mSmith mpointmoutmin mthemtext,mthatmmoremthan m75% mof mthemworld’smpopulati
on mlivemon m$15 mormlessmamday m(ormaboutm$5,500 mpermperson mpermyear).mSeveralmexcellentmbooksmatte
mptmto mgivemsomemideamof mthemrangemof mlivingmstandardsmfound mthroughoutmthemworld.mFormexample
,mThemMaterialm World m by m Peterm Menzell.m Thism book m presentsm photographic m profilesm of m typical
m families
around mthemworld mwith mallmof mtheirmpossessionsmplaced min mfrontmof mtheirmhomes.mAsmonemgoesmfromm
onemfamily mto mthemnextmtheminstructormhasmthemopportunity mto mhighlightmthemimportantmdifferencesmb
etween mnationsmand mregionsmand mto mtouch mon mkey missuesmof mgrowth mand mdevelopment.
Onem of m them key m strengthsm of m thism chapterm ism thatm itm doesm notm focusm solely m on m them hard m numbersm that
supposedly mmeasuremdevelopment.mThemdiscussion mof mSen’smCapabilitiesmapproach mand mthemfarmless
mthan mperfectmrelationship mbetween mincome mand mhappiness mare mwellmworth mspendingma mfairmamountm
of mclassm timem exploring.m Classm timem should malso m bem spentm discussingm them32 mcriticalmquestionsm lis
ted m on
pagesm21–
23 mof mthemtextmand mthen maskingmstudentsm to midentify m3 morm4 mquestionsmthatmthey maremparticularly minte
rested min mexploring.mAskingmeach mstudentmto mlistmwhatmthey mconsidermto mbem“critically” mcriticalmques
tionsmon mamsheetmof mpaper,mcollectingmtheirmresponses,mand mthen mtryingmto mdirectmthemrestmof mthemterm
mto maddressingmthe mmostmcommonly mmentioned mcriticalmquestions mformthatmclass mwillmbe mhelpful
in mfurthermdrawingmstudentsmin mand mholdingmtheirmattention mthroughoutmthemterm.
Atmthismsamempoint,mtheminstructormmightmalso mwish mto mgetmsomemideamof mstudents’mexperiencesm trav
elingmto mdevelopingmcountriesmand,min masmsubtlemamway masmismpossible,mdeterminemhowmshaky mtheirmu
nderstandingmof mthemwidermworld mis.mTheminstructormperhapsmcould mdrawmon mhismormhermown mexperie
ncesmand mgivemsomembackground masmto mhowmhemormshemfirstmbecame minterested min mDevelopment
Economics.mThismmay m– mthrough mthemkindsmof mquestionsmasked m–
mhelp mthe minstructormfurthermgauge mstudents’mlevelmof msophistication min mthismarea. mThis mismnotmsomet
hingmthatmshould mbemor,mcan,mbemsettled min mthemfirstmonemormtwo mclassesmand mwillmdevelop movermthemc
oursemof mthemterm.
In mmany muniversities,mthemeconomicmdevelopmentmcoursemwillmbemfilled mwith mstudentsmwho maremnotm
majoringmin meconomics.mThesemstudentsmmay mcomemfrommdifferentmcollegesmwith mmajorsmsuch masman
thropology,msociology,mormpoliticalmsciencemormbusinessm(management,mfinance,metc.).mThey mmay mha
vemhad masmlittlemasmonemsemestermof mintroductory meconomics.mGiven mthatmyou maremteachingman mecono
micsmclass,myou mmay mwish mto mremind mthemstudentsmof mthismfactmand moffermwhatevermhelp myou mcan.mG
iven mvideo mcapturemsoftware,myou mmightmconsidermrecordingmsomemprimersmthatmthen mcould mbemmad
emavailablem to m studentsm through m coursem managementm softwarem such m asm Blackboard m orm Moodle.
m You
, Todaro mandmSmith,mEconomicmDevelopment,m13e,mInstructor’smMan
ual
certainly mshould musemthemfirstmclassmormtwo mto msetmthemstagemformthemapproach myou mwillmtake,mwhethe
rmitmwillmbemmoreminterdisciplinary, mmoremeconomic,mmoremmathematicalmand mquantitative,mmorem hi
storical,mormsomemcombination.
Emphasise mthatmdevelopmentm economicsm isman mexcitingmsubjectm to mstudy mand mteach mbecausemitmdoe
sm notmfocusmjustmon monemcountry,mbutmon mallmless-
developed mcountries.mFurthermemphasise mthatmyou mwillmtry mto mteach mkey mconceptsmand mideasmwhich m
can mbemapplied mto mthemexperiencesmof mmany mdevelopingmcountries.mThesemconceptsm and mideasmaremi
mportantm formunderstandingmwherem themdevelopingmcountriesmaremtoday,masmwellmasmwhatmtheirmopti
onsmaremformthemfuture.mYou mmightmalso mwish mto memphasise m thatm therem arguably m ism no m otherm aream o
f m economicsm thatm ism morem relevantm to m them majority mof mthemworld’smpeople.
Asmalready mmentioned,mthem32 mcriticalmquestionsmcan mbemused mto mmotivatemstudentminterestmin mthemsu
bjectmasmwellmasmpresentman moverviewmof mwhatmthemclassmismallmabout.mItmcan mbememphasised mthatmthe
remismno monemanswermto mthemgeneralmquestion mof mwhy msomemcountriesmaremmoremdeveloped mthan moth
ers.mTheremaremasmmany mdifferentmopinionsmon mwhatmamless-
developed mcountry mshould mdo mto mbecomemmoremdeveloped.mAmgood mapproach mismto mpresentmdifferin
gmviewpointsmthroughoutmthemcoursemand mletmthemstudentsmmake mup mtheirmmindsmon mtheirmown.
◼ Discussion Topics m
Encouragingmclassmparticipation mismamgood mway mto mmotivatemthemstudentsmand mmakemthemmfeelminvol
ved min mthemlearningmprocess.mThemfirstmfewmweeksmof mclassmin mparticularmaremconducive mto mthismsortm
of mexercise.mTwo mideasmformdiscussionsmatmthismstagemare:
• Whatmismthemmeaningmof meconomicmdevelopment? mWhy mdo mwemnotmseemamstrongermrelationship mb
etween mincomemand mhappiness,mespecially moncemincomemhasmrisen mabovem$20,000 mamyearmpermperso
n?
• Ismitmpossible mformthemwholemworld mto mbemdeveloped?mThismcan mbeman minterestingmquestion mto mask ma
tmthembeginningmof mthemcourse,moncemenvironmentmand mdevelopmentmhavembeen mcovered m(Chapterm
10),mand mthen magain matmthemend mof mthemcourse.
◼ Sample Questions
m
ShortmAnswer
1. Provide mamdefinition mof mdevelopmentmeconomics. mJustify myourmchoicemcarefully.
Answer:m SeemSection m4 m(pagesm8–
10)mformsomemideasmaboutmhowmthemstudentsmmightmanswermthismquestion.mThey mshou
ld min msomemway msay mthatmdevelopmentmeconomicsmismmoremthan mjustmgrowth min mGD
P.
2. In mdefiningmdevelopmentmto mincludemmoremthan mjustmthemgrowth mof mpermcapitamincome,mtheremis
man mimplicitmassumption mthatmthe mgrowth mof mpermcapita mincome malone mismnotmsufficientmto mguara
nteem themreduction mof mpoverty mand mthemgrowth mof mself-
esteem.mIsmitmpossible mthatmtheremcould mbemgrowth mof mpermcapitamincome mwithoutmthemachievem
entmof mthesemothermobjectives?
, Todaro mandmSmith,mEconomicmDevelopment,m13e,mInstructor’smMan
ual
Answer:mPermcapitamincomemcan mshowmgrowth meven mwhen mthatmgrowth mdoesmnotmtouch mvastmp
ortionsmof mthempopulation.mThismpointmismclearly mmademinmChapterm5 mand mismsuggested
min mthe mcomparative mcase mstudy mof mPakistanmand mBangladesh. mThe mgrowth mmay mbe mce
ntered min monemareamormsectormof mthemeconomy,mformexample.mAlso,mmostmdeveloped mc
ountriesmhave,matmsomemtimemin mtheirmhistories,mintroduced mpoliciesmemphasisingmequal
ity.
3. In mwhatmway mismdevelopmentmeconomicsmgreatermin mscopemthan mtraditionalmeconomics?
Answer:mDevelopmentmeconomicsmmustmencompassmthemstudy mof minstitutional,mpolitical,mand ms
ocialmasmwellmasmeconomicmmechanismsmformmodernisingman meconomy mwhilemelimina
tingmabsolutempoverty mand mtransformingmstatesmof mmind masmwellmasmphysicalmconditio
ns.mMoremdetailsmfound min mthemchapter.
4. Makemamcasemthatmdevelopmentmeconomicsmmightmbemmerely mamcombination mof mallmthemothermsu
bfieldsmof meconomics,monly mapplied mto mlow-income mcountries.
Answer:m SeemQuestion m3 mabove.
5. Whatmdo myou mthink maremthemmostmseriousmobstaclesmto mfurthermprogressmin mthemdevelopingmworld?
Answer:m Themmain mpointmheremismto mensuremthatmstudentsmaremthinkingmcarefully maboutmthemiss
uesmraised min mthemtext.mYou mmay malso mwish mto mdrawmfrommthemcriticalmquestionsmon mp
agesm21–23.
6. In mreviewingmdiscussionsmof mlifemin mdevelopingmcountries,mwhatmismitmaboutmlifestylesmin mthemlo
w-mincomemcountriesmcompared mwith mlifestylesmin mthemhigh-
income mcountriesmthatmmostmstrikesmyou?mWhy?
Answer:m Thismisman mopen-ended mquestion mto mstimulate mreflection.
7. Do myou mthink mitmismin mthemmaterialminterestsmof mhigh-incomemcountriesmto mhelp mlow-
income mcountriesmimprove mtheirmeconomic mperformance? mWhy mormwhy mnot?
Answer:mAnswersmmightmtouch mon mincreasingmthemmarketmformproductsmin mwhich mhigh-
incomemcountriesmhavemamcomparativemadvantage,mreducingmthemdangersmof mregionalm
warmand mterrorism,mreducingminternationalmtransmission mof mdisease,mand mcurbingminte
rnationalmmigration.
8. Howmismhappinessmrelated mto mdevelopment?
Answer:mAnswersmshould mmakemreferencemto mthemcorrelation mbetween mhappinessmand mincome m
levelmasmwellmasmtouch mon mthemconnection mbetween mhappinessmand msocialmrelationshi
ps,mpersonalmand mdemocratic mfreedoms,mreligiousmbeliefs,mand mhealth,mamongmothermf
actorsmlisted mon mpagem12.mFurther,manswersmshould mincludemamdiscussion mon mhappine
ssmasm beingmampartmof mAmartya mSen’smconceptmof mfunctionings.
9. Comparemand mcontrastmthemUN’smMillenniummDevelopmentmGoalsm(MDGs)m2000–
2015 mwith mthemSustainable mDevelopmentmGoalsm(SDGs)mputmforward min m2015?mWhatmdo myou mc
onsidermto mbemthemmostmimportantmof meithermsetmof mgoalsmand mwhy?
Answer:m Themanswermshould mstressmthatmboth msetsmof mgoalsmcovermambroad mrangemof mobjectives
mboth meconomic mand msocial. mThese mwere mputmforward mso mthatmdevelopingmcountries m
would mhavemnumericalmtargetsmagainstmwhich mtheirmprogressmcould mbemjudged mand,m
wheremwarranted,mappropriate massistance moffered.
