Growth and development in emerging economies

In Sudan, public services such as healthcare are struggling to keep running. Power outages, blocking of internet access, and fuel shortages, will mean hospitals struggle to operate. Many of the hospitals in the capital city, Khartoum, have reported shortages of doctors, blood, transfusion equipment, medical supplies, and other skilled workers and commodities.

(Source adapted from: https://www.thelancet.com/journals/lancet/article/ PIIS0140‑6736(23)00858‑9/fulltext)

Evaluate the possible factors influencing the level of economic development in a developing country of your choice.

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(a) Using a demand and supply diagram, explain the cost of a subsidy on the market for cooking oil to the Indian government (Extract E, line 6).

(b) Examine two advantages of using the Human Development Index (HDI) to measure the level of economic development in India.

(c) With reference to Extract F, discuss the problems that might be involved with the buffer stock system in India.

EITHER

(d) Evaluate the microeconomic and macroeconomic reasons for the fall in poverty in India.

Using a demand and supply diagram, explain the cost of a subsidy on the market for cooking oil to the Indian government (Extract E, line 6).

Examine two advantages of using the Human Development Index (HDI) to measure the level of economic development in India.

With reference to Extract F, discuss the problems that might be involved with the buffer stock system in India.

EITHER

Evaluate the microeconomic and macroeconomic reasons for the fall in poverty in India.

Evaluate the microeconomic and macroeconomic effects of rapid increases in population in India.

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Explain one reason why a country might operate a managed exchange rate. Refer to Extract D in your answer.

With reference to the second paragraph of Extract E, examine two likely problems for the expansion of the chocolate industry in Ghana.

Discuss factors influencing the level of aggregate demand in Ghana. Use an aggregate demand and aggregate supply diagram in your answer.

EITHER

Evaluate the microeconomic and macroeconomic effects of high interest rates in Ghana, or another developing country of your choice.

Evaluate the microeconomic and macroeconomic effects of Ghana joining the African Continental Free Trade Agreement (Extract F).

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With reference to Extract A, explain what is meant by a ‘regional trade agreement’ (Extract A, line 7).

With reference to Extract A, examine two causes of the high cost of transporting goods between African countries.

Discuss the impact of improved transport links between African countries on economic growth rates.

Assess two likely benefits of debt relief to Angola. Refer to Extract B in your answer.

Discuss market-orientated strategies the Angolan government could use to improve development.

Explain what is meant by the Lewis model. Refer to Extract D in your answer.

Examine two demographic factors influencing development in Kenya.

Using the example of cut flowers (Extract F), discuss how the concept of absolute advantage may lead to growth in Kenya. Use numerical or diagrammatic analysis in your answer.

EITHER

Evaluate the microeconomic and macroeconomic effects of decreasing interest rates in Kenya, or another developing country of your choice.

Evaluate the microeconomic and macroeconomic strategies that could be used to promote development in Kenya, or another developing country of your choice.

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Using the data in Figures 1 and 2, calculate the change in the level of total aid funding to Rwanda between 2011 and 2012.

With reference to the information provided, examine two likely benefits for the Rwandan economy of the growth in the country’s population.

With reference to the information provided, assess the likely impact on the Rwandan economy of the change in aid received between 2017 and 2018.

Discuss the likely impact on Rwandan consumers and clothing manufacturers of the increase in the tariff on imports of second-hand clothes. Use an appropriate diagram to support your answer.

Discuss policies, other than import tariffs, that the Rwandan government could use to develop its manufacturing industries.

With reference to Figure 1 and Extract A, explain the likely impact of a Fairtrade scheme on agricultural communities.

Examine two ways, apart from Fairtrade schemes, in which cocoa farmers could boost their incomes despite the falling price of cocoa.

Discuss the problems for the Ivory Coast of dependency on cocoa for a large proportion of their exports. Refer to Figure 2 in your answer.

Nigeria is considering joining the African Continental Free Trade Agreement. Assess policies the Nigerian government could use in response to the concerns of the country’s ‘manufacturers and trade unions’ (Extract B paragraph 3) if they join this trading bloc.

Discuss the likely benefits of increased economic integration for sub‑Saharan African countries.

With reference to Figure 1 and Extract A, explain the likely impact of a Fairtrade scheme on agricultural communities.

Examine two ways, apart from Fairtrade schemes, in which cocoa farmers could boost their incomes despite the falling price of cocoa.

Discuss the problems for the Ivory Coast of dependency on cocoa for a large proportion of their exports. Refer to Figure 2 in your answer.

Nigeria is considering joining the African Continental Free Trade Agreement. Assess policies the Nigerian government could use in response to the concerns of the country’s ‘manufacturers and trade unions’ (Extract B paragraph 3) if they join this trading bloc.

Discuss the likely benefits of increased economic integration for sub‑Saharan African countries.

With reference to Extract D line 21, explain why ‘opportunity cost’ is a problem for governments of developing countries when servicing debt.

Examine two reasons, apart from access to finance, why 90% of the manufacturing sector in Mozambique ‘is made up of small enterprises’ (Extract E, line 9).

Discuss whether borrowers benefit from microfinance. Make reference to Mozambique in your answer.

EITHER

Evaluate the microeconomic and macroeconomic factors, apart from access to credit and banking, influencing growth and development in Mozambique.

Evaluate the likely microeconomic and macroeconomic effects of relatively high inflation rates in many African countries.

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With reference to the information provided, explain the distinction between absolute poverty and relative poverty.

With reference to the information provided and your own knowledge, examine two factors that might explain the differing rates of decline in absolute poverty in East Asia and Sub-Saharan Africa.

With reference to Extract A, discuss two macroeconomic policies, apart from protectionism, that a government could use to reduce the negative effects of globalisation.

Assess the view that ‘some level of inequality is desirable to maintain an appropriate incentive structure in the economy’ (Extract B, lines 19 and 20).

Discuss the role of the financial sector in the growth and development of developing countries.

Using the data in Figure 4 and other information provided, explain the likely change to Indonesia’s terms of trade since 2011.

Examine the likely effects on the profitability of Indonesian rice farmers of the government’s increased investment in dams (Extract E, lines 43-48). Use a cost and revenue diagram to support your answer.

Discuss the benefits of aid to Indonesia.

EITHER

With reference to the information provided and your own knowledge, evaluate the microeconomic and macroeconomic effects on Indonesia of the volatility of prices of commodities such as coal.

Evaluate the likely microeconomic and macroeconomic effects of the supply-side policies recently introduced in Indonesia.

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With reference to Figure 2, explain one likely reason for the change in the Chile peso exchange rate between 2013 and 2015.

Examine the likely impact of externalities of copper mining on firms and communities within Chile.

Apart from externalities, discuss the problems that Chile faces as a result of dependency on copper mining.

EITHER

With reference to the information provided and your own knowledge, evaluate the microeconomic and macroeconomic effects of policies that could be used to stimulate economic growth and development in Chile.

With reference to the information provided and your own knowledge, evaluate the microeconomic and macroeconomic impact on Chile’s economy of changes in the level of investment.

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