PNG

  

DEVELOPMENT ECONOMICS

SOLOMON ISLANDS

EAST TIMOR
The purpose of this page is to provide a final checklist of the the key concepts that needed to be included in your essay next week. Read this checklist and make sure that your essay covers many of the points listed below. While it may not be possible to cover all points listed below this page should be used as a type of template for the direction and structure of your essay. Good Luck!!

DEVELOPMENT INDICATORS
Economic
level of inflation
balance on current account
contribution of agriculture to GDP
capital employed by person
GDP per capita
Social
life expectancy at birth
energy consumption per person
population per doctor
daily calorie supply per capita
percentage of population
who are literate

 

 percentage of the population enrolled in education
Subjective
freedom of the individual
quality of life

 

village industry

 

 

young fisherman in Dili

 

 

 

 

rice farmer

 

 

 

 

gambling at a cock fight

 

 

FACTORS INHIBITING GROWTH IN DEVELOPING COUNTRIES
Population
density is a key issue
rate of population increase is a key point because economic growth must keep pace with this rate
Excessive Dependence on Agriculture
especially if labour intensive approaches are used
level of income consumed is a key point
vicious cycle of poverty
Small Manufacturing Sector
lack of a viable manufacturing sector can prevent the production of consumer goods for world markets
Infrastructure
developing countries have notoriously poor infrastructure
Governments often lack the resources to develop infrastructure
Trade

A narrow export base can prevent development especially agricultural products due to fluctuating commodity prices.
Debt

This can escalate out of control when:
foreign loans are easily obtained
domestic savings are low
Political and Cultural Constraints

The following points maybe relevant:
little sense of nationalism
tribal allegiances
warring tribes
level of political stability

bus station in Dili

STRATEGIES FOR ECONOMIC GROWTH
Improvements in Natural Resources and Use

This includes the discovery of existing deposits and the more efficient use of natural resources.
Improvement in Labour Quality

This depends on the following:
education and training
health
attitude towards work
Improvement in Investment

Points that need to be stressed in this section include:
Fixed capital
capital widening
capital deepening
Improvements in Technology

This involves the more efficient use of resources, combining or employing them in new ways so as to result in a larger output. Refer to the combination of new technology with capital equipment. For many developing countries it may mean the adoption of better farming methods such as better crop rotation. Research and Development is the key term-remember the emphasis Japan had in this area.  
Development Of Export Industries

The theory of comparative advantage could be introduced in this section. 

Countries that sell on the world markets can exploit economies of specialisation and scale. This helps to create efficient producers who are competitive both on export and domestic markets.

The foreign exchange earned from exporting competitive items can be used to import products in which other countries have a comparative advantage.

Countries that achieve sustained economic growth are successful in developing export industries.
The points mentioned above are all treated in more detail in chapter 9 of your text book.. It also important not to forget to mention the final section on how the successful future prospects of the country of your choice. While it maybe difficult to predict the industries these countries may have a comparative advantage in you should be able to elaborate on the institutions that may emerge. This allows you to mention a development pattern. However it should also be obvious the strong need for aid to continue for some time.