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Short question 1

income and wealth are not ends in themselves but instruments for other purposes goes
back at least as far as Aristotle. Briefly discuss this statement in the view of Capibility
approach.

According to this statement, income and wealth change into another thing for our
needs:
Initially, Sen argued for five components in assessing capability:

1. The importance of real freedoms in the assessment of a person's


advantage
2. Individual differences in the ability to transform resources into
valuable activities
3. The multi-variate nature of activities giving rise to happiness
4. A balance of materialistic and nonmaterialistic factors in evaluating
human welfare
5. Concern for the distribution of opportunities within society

Short question 2

the greater the curvature of the lorenz line, the greater the relative degree of
inequality. Discuss this statement with the help of Diagram.

Lorenz Curve shows the actual quantitative relationship between percentage of income
recipients and percentage of national income they receive.The more the Lorenz curve
shifts away from the line of equality the greater the degree of income inequality.
Short question 3

what are the issues other than the population growth in developing
countries like pakistan?
The real problem is not population growth but the following,

Underdevelopment
If correct strategies are pursued and lead to higher levels of living, greater self-
esteem, and expanded freedom, population will take care of itself.
World resource depletion and environmental destruction
Natural resources are not utilizing for human development.
Deforestation is so extensive, it has made several significant impacts on
the environment.
Population Distribution
Many regions of the world and many regions within countries are viewed as
underpopulated in terms of available or potential resources.
Subordination of women
According to this argument, population growth is a natural outcome of
womens lack of economic opportunity.

Short question 4
Is the size of women in the informal sector play a vital role? Do you
agree this statement?Discuss.
Yes, I agree. Women have vital role in the informal sector. Women are over-
represented in the informal sector worldwide. The informal sector is the primary
source of employment for women in most developing countries. The majority of
economically active women in developing countries are engaged in the informal
sector.
Short question 5
What is meant by Efficacy of Domestic Institutions? Discuss your point
of view in this regard.
There are a number of domestic institutions that may act as sources of economic
development and, it is fair to argue, may also act as barriers to development if they
are absent or lacking in an economy. These factors are a part of the institutional
framework of any country.
Different institutional factors affecting development :
1. Education
2. Health care
3. Infrastructure
4. Political stability and a lack of corruption
5. Legal system
6. Financial system, credit, and micro-finance
7. Taxation
8. The use of appropriate technology
9. Income distribution
10.The empowerment of women
Long Question 1
To attain the development whats the values to adopt?
Explain it.
Development is both physical reality and a state of mind. In general, development
means to have a better and more humane life. Three basic components or
core values serve as a conceptual basis and guideline for understanding the inner
meaning of development. These are common goals sought by all individuals and
societies They relate to fundamental human needs.

Sustenance: The Ability to Meet Basic Needs


sustaining basic human needs: food, health, and protection.if any is absent or
in short supply: a condition of absolute underdevelopment exists.
a basic function of all economic activity: to provide as many people as possible
with the means of overcoming the helplessness and misery arising fro such
shortness.
rising per capita incomes, the elimination of absolute poverty, grater
employment opportunities, and lessening income inequalities are necessary
but not sufficient conditions for development.

Self-Esteem: To Be a Person
The feeling of worthiness that a society enjoys when its social, political, and
economic systems and institutions promote human values such as respect, dignity,
integrity, and selfdetermination.
Freedom from Servitude: To Be Able to Choose
The advantage of economic growth is not that wealth increases happiness, but it
increases the range of human choice.
Long Question 2
At the initial stage of development , how low income
countries today differ from developed countries.Discuss it.
The position of developing countries today is in many important ways significantly
different from that of the currently developed countries when they embarked on
their era of modern economic growth.
1.Physical and Human Resource Endowments
The difference in skilled human resource endowments is even more pronounced.
The ability of a country to exploit its natural resources and to initiate and sustain
long-term economic growth is dependent on the managerial and technical skills of
its people and its access to critical market and product information at minimal cost.
2.Relative Levels of Per Capita Income and GDP
The people living in low-income countries have, on average, a lower level of real
per capita income than their developed-country counterparts had in the
nineteenth century.
3.Climatic Differences
Almost all developing countries are situated in tropical or subtropical climatic
zones. It has been observed that the economically most successful countries are
located in the temperate zone.
4.Population Size, Distribution, and Growth
it is sufficient to note that population size, density, and growth constitute another
important difference between less developed and developed countries. Before and
during western nations experienced a very slow rise in population growth.
5.The Historical Role of International Migration
In the nineteenth and early twentieth centuries, a major outlet for excess rural populations
was international migration, which was both widespread and large-scale.
6.The Growth Stimulus of International Trade
International free trade has been called the engine of growth. Rapidly
expanding export markets provided an additional stimulus to growing local
demands that led to the establishment of large-scale manufacturing industries.
7.Basic Scientific and Technological Research and Development Capabilities
Basic scientific research and technological development have played a crucial role
in the modern economic growth experience of contemporary developed countries.
8.Efficacy of Domestic Institutions
Another difference between most developing countries and most developed
countries at the time of their early stages of economic development lies in the
efficacy of domestic economic, political, and social institutions.
Long Question 3
What are the causes of urban giantism?
The causes of Urban giantism are following:

1.Bread and Circuses


Urban Giantism The largest city in developing countries holds a very large share
of the national population. A different aspect of this urban giantism is that there is
often quite a size gap between the largest city and the second largest city.
Politics of the matter,unstable countries tend to have higher urban concentrations.
To stay in power, the government gives benefits to the urban dwellers that in turn
attract more migrants from the rural area.
2. Import Substitution Industrialization.
The government policy of high protectionism (import substitution
industrialization) for the local products and high transportation cost can also
promote urban giantism and first city bias. When there is high protectionism for
domestic or local products and the cost of transportation is very high, the
producers would be willing to have their manufacturing units in and around their
largest markets. This would help them have comparative and cost advantages.

3.Centralized transportation system


The hub-and-spoke transportation system with its centre in the capital (largest
city) results into large companies to have its base in the capital city. Locating in
the capital city can also help the firms and businesses in currying favor from the
politicians and bureaucrats and lobbying for their business as they can have direct
and easy access to the influential people in the political system.