4.3 Emerging and developing economies

Question 1

a) The three dimensions of the Human Development Index
(HDI) (education, health and living standards) and how
they are measured and combined

Question 2

b) The advantages and limitations of using the HDI to
compare levels of development between countries and
over time

Question 3

c) Other indicators of development

Question 4

a) Impact of economic factors in different countries:
o primary product dependency
o volatility of commodity prices
o savings gap: Harrod-Domar model
o foreign currency gap
o capital flight
o demographic factors
o debt
o access to credit and banking
o infrastructure
o education/skills
o absence of property rights

Question 5

b) Impact of non-economic factors in different countries

Question 6

a) Market-orientated strategies:
o trade liberalisation
o promotion of FDI
o removal of government subsidies
o floating exchange rate systems
o microfinance schemes
o privatisation

Question 7

b) Interventionist strategies:
o development of human capital
o protectionism
o managed exchange rates
o infrastructure development
o promoting joint ventures with global companies
o buffer stock schemes

Question 8

c) Other strategies:
o industrialisation: the Lewis model
o development of tourism
o development of primary industries
o Fairtrade schemes
o aid
o debt relief

Question 9

d) Awareness of the role of international institutions and
non-government organisations (NGOs):
o World Bank
o International Monetary Fund (IMF)
o NGOs