Economic Development 4.1
IB Syllabus Requirements:
The nature of economic growth and economic development
• Distinguish between economic growth and economic development.
• Explain the multidimensional nature of economic development in terms of reducing widespread poverty, raising living standards, reducing income inequalities and increasing employment opportunities.
• Explain that the most important sources of economic growth in economically less developed countries include increases in quantities of physical capital and human capital, the development and use of new technologies that are appropriate to the conditions of the economically less developed countries, and institutional changes.
• Explain the relationship between economic growth and economic development, noting that some limited economic development is possible in the absence of economic growth, but that over the long term economic growth is usually necessary for economic development (however, it should be understood that under certain circumstances economic growth may not lead to economic development).
Common characteristics of economically less developed countries
• Explain, using examples, that economically less developed countries share certain common characteristics (noting that it is dangerous to generalize as there are many exceptions in each case), including low levels of GDP per capita, high levels of poverty, relatively large agricultural sectors, large urban informal sectors and high birth rates.
• Explain that in some countries there may be communities caught in a poverty trap (poverty cycle) where poor communities are unable to invest in physical, human and natural capital due to low or no savings; poverty is therefore transmitted from generation to generation, and there is a need for intervention to break out of the cycle.
Diversity among economically less developed nations
• Explain, using examples, that economically less developed countries differ enormously from each other in terms of a variety of factors, including resource endowments, climate, history (colonial or otherwise), political systems and degree of political stability.
International development goals
• Outline the current status of international development goals, including the Millennium Development Goals.
Theory of knowledge: potential connections
What are the knowledge issues involved in compiling a list of development goals?
Does the term “economic development” mean different things in different cultures?
Are there two ways of thinking about economics: from the point of view of an economically more developed country or from that of an economically less developed country? If so, what is the difference?
Are there two different sets of values in which such a distinction is grounded?
How can we decide if the distinction between economically more developed countries and economically less developed countries is a meaningful one given that economic development itself
might not be so clearly defined?
Enduring Understandings:
1. LDCs cannot grow or develop without improving their land, labor, capital, entrepreneurship, and institutions.
2. Generally LDCs share common issues, but why varies.
Essential Questions:
1. How does each economic resource relate to why LDCs are poor?
2. What are the common problems in LDCs?
Day 1: Development Defined and Sources of Development
By the end of the day you should be able to:
• Distinguish between economic growth and economic development.
• Explain the multidimensional nature of economic development in terms of reducing widespread poverty, raising living standards, reducing income inequalities and increasing employment opportunities.
• Explain that the most important sources of economic growth in economically less developed countries include increases in quantities of physical capital and human capital, the development and use of new technologies that are appropriate to the conditions of the economically less developed countries, and institutional changes.
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Overview Video of Development Economics:
Additional Review Presentation:
Growth vs. Development Review Video: • Distinguish between economic growth and economic development.
Economics Crash Course: Productivity and Growth: Why are some countries rich, while others are poor?
Economics Crash Course on Income and Wealth Inequality
Part 2 – The Green Revolution
1. Students to read “4.1A - The Green Revolution” then summarize the concept and write a short opinion re: the effectiveness of this as a way to develop
Why is this a good example of capital/tech in LDCs?
Part 5 – Growth and Dev.
Find some examples of countries that have experienced growth without development. Why has this happened? Relate this to the different aspects of economic development and what you learned today.
Exit Slip:
• Distinguish between economic growth and economic development.
• Explain the multidimensional nature of economic development in terms of reducing widespread poverty, raising living standards, reducing income inequalities and increasing employment opportunities.
• Explain that the most important sources of economic growth in economically less developed countries include increases in quantities of physical capital and human capital, the development and use of new technologies that are appropriate to the conditions of the economically less developed countries, and institutional changes.
HW: Read pp537-546 and here's another great summary of Economic Growth vs. Development
Day 2: Common Characteristics of LDCs
Goals for the day:
Common characteristics of economically less developed countries
• Explain, using examples, that economically less developed countries share certain common characteristics (noting that it is dangerous to generalize as there are many exceptions in each case), including low levels of GDP per capita, high levels of poverty, relatively large agricultural sectors, large urban informal sectors and high birth rates.
• Explain that in some countries there may be communities caught in a poverty trap (poverty cycle) where poor communities are unable to invest in physical, human and natural capital due to low or no savings; poverty is therefore transmitted from generation to generation, and there is a need for intervention to break out of the cycle.
Diversity among economically less developed nations
• Explain, using examples, that economically less developed countries differ enormously from each other in terms of a variety of factors, including resource endowments, climate, history (colonial or otherwise), political systems and degree of political stability.
International development goals
• Outline the current status of international development goals, including the Millennium Development Goals.
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Notes from “4.1B – Common Characteristics of LDCs”
Common Characteristics of LDCs:
Additional Review Presentation
Diversity Among LDCs:
Review: Why Are Some Countries Rich While Others Are Poor?
Poverty Cycle Explained:
Part 6 – Characteristics Data
Students to click on each of the below Gapminder maps /YouTube video and look at where LDCs are in relation to each characteristic – after looking at all, to explain their
findings:
Poverty (living off $2 / day)
Informal sector
Video – to introduce MDGs (Millennium Dev Goals)
Part 7 – Millennium Development Goals
Students to go to the millennium goals site, click on each of the goals, and briefly review the targets set by the UN. Explain how these are development, and not growth, focused.
Exit Slip:
• Explain, using examples, that economically less developed countries share certain common characteristics (noting that it is dangerous to generalize as there are many exceptions in each case), including low levels of GDP per capita, high levels of poverty, relatively large agricultural sectors, large urban informal sectors and high birth rates.
• Explain that in some countries there may be communities caught in a poverty trap (poverty cycle) where poor communities are unable to invest in physical, human and natural capital due to low or no savings; poverty is therefore transmitted from generation to generation, and there is a need for intervention to break out of the cycle.
Diversity among economically less developed nations
• Explain, using examples, that economically less developed countries differ enormously from each other in terms of a variety of factors, including resource endowments, climate, history (colonial or otherwise), political systems and degree of political stability.
International development goals
• Outline the current status of international development goals, including the Millennium Development Goals.
HW Read pp 547-550