Policies for growth and development

Question 1

Market-based policies

Answer 1

• trade liberalisation (remove trade barriers)
• promotion of FDI
• removal of govt subsidies
• floating exchange rate systems
• microfinance schemes
• privatisation

Question 2

Interventionist strategies

Answer 2

• development of human capital
• protectionism
• managed exchange rates
• infrastructure development
  promoting joint ventures with global companies

Question 3

Other development strategies

Answer 3

• industrialisation
• development of tourism
• development of primary industries
• fairtrade schemes
• aid
• debt relief/debt forgiveness

Question 4

Role of aid

Answer 4

Provides immediate relief and support to countries facing economic challenges, helping to address urgent needs such as healthcare, education, and infrastructure development but can lead to more debt

Question 5

Role of trade

Answer 5

facilitates long-term sustainable growth by fostering the exchange of goods and services, encouraging specialisation, and promoting investments, thereby stimulating economic development and improving living standards over time