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IB Syllabus Requirements:
Strengths and weaknesses of market-oriented policies
Strengths
• Discuss the positive outcomes of market-oriented policies (such as liberalized trade and capital flows, privatization and deregulation), including a more efficient allocation of resources and economic growth.
Weaknesses
• Discuss the negative outcomes of market-oriented strategies, including market failure, the development of a dual economy and income inequalities.
Strengths and weaknesses of interventionist policies
• Discuss the strengths of interventionist policies, including the provision of infrastructure, investment in human capital, the provision of a stable macroeconomic economy and the provision of a social safety net.
Weaknesses
• Discuss the limitations of interventionist policies, including excessive bureaucracy, poor planning and corruption.
Market with government intervention
• Explain the importance of good governance in the development process.
• Discuss the view that economic development may best be achieved through a complementary approach, involving a balance of market oriented policies and government intervention.
Theory of knowledge: potential connections
What criteria can economists use to decide on the balance between markets and intervention?
Is development economics dependent upon external normative notions such as what constitutes a good or fulfilled life?
Enduring Understandings:
Historically LDCs have tried both Markets & Intervention, with varying success. Today most development economists advise a mix.
Essential Questions:
What are the strengths and weaknesses of market-led and interventionist strategies in LDCs?
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“4.8 – The Balance Between Markets and Intervention”
Development and the Role of Markets:
Development and the Role of Government:
Aid for Africa? No Thanks!
Should governments make it easier for companies to do business? Does it help the people of a country when MNC's come there if those companies are tax exempt?
TEST – Opinion Report on Roles in Development
Presentations next class!
Work on the following task (Glossary of terms)
Practice Exam: Development (Note: we've already done this exam, but now you have more knowledge about development to help with your response)
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