4.3 Emerging And Developing Economies

Question 1

What is HDI?

Answer 1

An index compiled by the UN that measures a countries economic development
Closer to 1 is best

Question 2

What is HDI made up of?

Answer 2

Education: mean years of schooling for 25 year old and expected schooling years for 5 year old
Health: life expectancy at birth
Living standards: GNI per capita at PPP

Question 3

Disadvantages of HDI

Answer 3

Doesn’t take into account inequality of poverty
The health and education indices don’t measure quality
Corruption and the environment aren’t included

Question 4

Advantages of HDI

Answer 4

Education and health two important factors. Shows how successful gov policies have been
Allows comparisons between countries to be made

Question 5

IHDI

Answer 5

HDI value when no inequality, falls below HDI value as inequality increases

Question 6

Market orientated strategies influencing growth and development

Answer 6

1. Trade liberalisation
2. Promotion of FDI
3. Removal of government subsidies
4. Floating exchange rate systems
5. Micro finance systems
6. Privatisation

Question 7

Interventionist strategies influencing growth and development

Answer 7

1. Development of human capital
2. Protectionism
3. Managed exchange rates
4. Infrastructure development
5. Promoting joint ventures with global companies
6. Buffer stock schemes

Question 8

Other strategies influencing growth and development

Answer 8

1. Industrialisation: The Lewis Model
2. Development of tourism
3. Development of primary industries
4. Fairtrade schemes
5. Aid
6. Debt relief

Question 9

Role of the world bank

Answer 9

Aim is to promote economic progress by raising productivity and reducing poverty.
Can loan funds to member countries.

Question 10

Role of the IMF (international monetary fund)

Answer 10

Aims to promote monetary corporation between nations and monetary problems can be consulted in the institution.
Aims to help free trade globally, so jobs supported.
Promotes exchange rate stability and tries to avoid competitive depreciations in the currency.

Question 11

Role of NGO’s

Answer 11

Voluntary groups which airs to raise the voices of ordinary citizens about issues like human rights, healthcare or the environment.
Could be funded by government, firms or private individuals.