Chapter 1, Problem 3QFR

Billions of people in the world make two dollars a day or less. In fact, a billion people make less than one dollar a day. In such places, a loan of $100 or $200 makes a huge difference. That's where microloans from organizations such as Opportunity International come in. Opportunity International is an organization that grants microloans to people, mostly women, in developing countries so they can invest in a business. Those investments often lead to community growth and employment, and help the owners, themselves, to prosper on a moderate scale. The borrowers must pay back the money with interest—when they do, they can borrow more and keep growing. Opportunity International, unlike some other microlending organizations, also provides a banking function where entrepreneurs can safely put their money. They can also buy some insurance to protect themselves against loss. Opportunity International helps over a million people in over 28 countries, giving them the opportunity to change…

What are the major government policies play in effective role in the growth and development of a country ?

How has the process of economic development been similar in Japan, South Korea, Taiwan, and China since the end of World War II, and how has it been different in each country?

The International Property Right Index scores countries based on the legal and political environment and how well property rights are protected. Go online and find a recent ranking. Choose three countries with high scores and three countries with low scores. Then find estimates of GDP per person in each of these six countries. What pattern do you find? Give two possible interpretations of the pattern.

Draw a graph of "catch-up" that shows where you would expect to see a country with low saving rates and low levels of health and education.  How would you expect real GDP per capita to grow in a country like this?

Draw a graph of "catch-up" that shows where you would expect to see a country with low saving rates and low levels of health and education. How would you expect real GDP per capita to grow in a country like this? Explain your answer.

Examine the different economic systems in a country, using examples.

Why do poorer societies have higher population growth rates than wealthier societies? How does poverty affect the environment? How does affluence affect the environment?

Some countries are developing at so fast pace. What are the reason behind this economic development.