Social and health issues in development

Question 1

Theories of income inequality
- Thomas Piketty

Answer 1

Thomas Piketty
- Author: “Capital in the 21 centuary”
- Before world war 1
- Redistribution in the form of progressive taxation
- Wealthy people will get richer than ordinary income earners unless extraordinarynshocks or high taxes destroy wealth.

Question 2

Theories of income inequality
- Hernando de Soto

Answer 2

De Soto
- if “Deal Capital” were legalized it will elevate the poor out of poverty.
- Protects rights of ownership
- ease the way for free market transactions

Question 3

Important of property rights in the development of a country

Answer 3

• property rights refers to an owners right to use a good or asset for consumption or income generation.
• If poor people living in the informal economy have access to property right they can generate wealth.

Question 4

How does informal economy traps poverty

Answer 4

The informal economy provides employment opportunities, especially with in developing countries, to those who do not have employment security, work security and social security.

Question 5

Property rights:
Define the ownership of resources and how they can be used.

Answer 5

• These resources can be used in a tangible (physical things you can touch) or intangible (non physicall things you cannot touch)
• can be owned by individual, businesses and governments
• property rights give confident to companies and people to invest in land