fe UNISA ECS207G OCTOBER/NOVEMBER 2010 OKTOBER/NOVEMBER 2010 DEVELOPMENT ECONOMICS. ONTWIKKELINGSEKONOMIE ‘STUDENT NUMBER / STUDENTENOMMER IDENTITY NUMBER / IDENTITEITSNOMMER unten ow ‘Ria Ria Marks: Question No“ Rao ‘aveane 2 |igEXarniners: ‘Subyect / Vak Number of paper / Viaesteinommer Date of examination / Datum van eksamen Examination centre / Eksamensentrum WARNING. 1A canddate who wihout suthorsation takes iio he ‘exemnaiion venue any book document or cbyect whieh ould assist hm in ine examination ano coes not Nand ‘over such reatonal fo the migistor before the ofl Commencement of the exarmimation, wil be Quity of vningng the Unwersty’s examination regulations and will able to punshment as seterminec bv Count! 2 Rough work may be done only on the examination question paper sed mis be labeled ae such 3. 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UNIVERSITY EXAMINATIONS UNIVERSITEITSEKSAMENS UNISAlS= ECS207G October/November 2010 Oktober/November 2010 DEVELOPMENT ECONOMICS (ECS 207G) ONTWIKKELINGSEKONOMIE (ECS 207G) Duraton 2 Hours 100 Marks Tydsduur 2 Uur 100 Punte EXAMINERS / EKSAMINATORE . FIRST / EERSTE. PROF AG OOSTHUIZEN SECOND/TWEEDE PROF P LALTHAPERSAD-PILLAY Use of a non-programmable pocket calculator 1s permissible, Gebruik van ‘n nie-programmeerbare sakrekenaar is toclaatbaar ‘This paper consists of 30 pages including 2 additional pages for longer answers or rough work (pp 29 to 30) plus the special front page Hierdie vraestel bestaan urt 30 bladsye insiuitende 2 ekstra bladsye wir langer antwoorde of rofwerk (pp 29 tot 30) plus die spesiale voorblad ‘This examination question paper remains the property of the University of South Africa and may not be removed from the examination venue. Hierdie eksamenvraestel bly die erendom van die Universiteit van Suid-Afrika en mag nie uit die eksameniokaal verwyder word nie. STUDENT NUMBER / STUDENTENOMMER 1 Please wnte legibly We cannot mark what we can't read 2 Do NOT use a red pen or a pencil to answer questions 3 Answer any 4 questions and wnte these numbers on the front INSTRUKSIES: ‘ INSTRUCTIONS: 1 Skryf asb leesbaar Ons kan nie merk wat ons nie kan lees nie 2 MOENIE met ‘n roo! pen of ‘n potlood die vrae beantwoord nie 3. Beantwoord enige 4 vrae en skryf die nommers voor op die vraestel [TURN OVER} IBLAA! OM]2 Ecs2076 10/11 2010 ‘THE PAPER CONSISTS OF SECTION A AND SECTION B. ‘SECTION AIS COMPULSORY AND REPRESENTS 40 MARKS ANSWER ALL QUESTIONS FROM SECTION A. CHOOSE ANY 3 QUESTIONS FROM SECTION B. SECTION B REPRESENTS 60 MARKS. DIE VRAESTEL BESTAAN UIT AFDELINGS A EN B. AFDELING AIS VERPLIGTEND EN VERTEENWOORDIG 40 PUNTE. BEANTWOORD ALLE VRAE IN AFDELING A. KIES ENIGE DRIE VRAE IN AFDELING B. AFDELING B VERTEENWOORDIG 60 PUNTE. Al Economic development was traditionally measured by means of the GDP per capita but was recently replaced by the Human Development Index (HDI) Explain what components. of development Is measured with this new tool and evaluate its advantages and disadvantages as a tool of measunng development 6) Ekonomiese ontwikkeling 1s tradisionee! gemeet deur middel van BBP per capita maar 1s onlangs vervang deur die Mensike Ontwikkelingsindeks (MOI) Verduidelik water komponente van ontwikkeling deur hierdie nuwe instrument gemeet word, en evalueer die voordele en nadele daarvan as metngsinstrument © ‘A2__ Give a comprehensive descnption and evaluation of the Gini coefficient 3) Gee ‘n omvattende verduideliking en evaluenng van die Gini koeffisient ® ‘A3_ The debate on whether high population growth 1s good or bad for economic growth and development is stil not resolved Four points of consensus have however been reached on the issue of population growth that can be used for policy formulation Identfy these points of consensus (4) Die debat rondom die effek van ho® bevolkingsgroe! op ekonomiese groei en ontwikkeling 1s nog mie bygelé nie Vier punte van konsensus oor bevolkingsgroe! bestaan egter reeds en kan gebruik word ir beleidsformulenng Identifiseer hierdie vier punte van Konsensus 4) ‘A4 Explain why education and health are considered to be joint investments in development 4) \Verduidelik waarom onderwys en gesondherd beskou word as 'n saamgevoegde belegging 1m ontwikkeling @ [TURN OVER] IBLAAI OM}3 ECS207G 40/14 2010 AS. Argue for and against foreign direct investment (FDI) from a developing country’s point of view (10) Stel die argumente vir en teen buitelandse direkte investering vanuit 'n ontwikkelende land se gesigspunt (10) ‘A6 State the different opinions of the proponents for and the opponents of foreign aid @ Gee die verskilende opines van die voorstanders sowel as die teenstanders van buitelandse hulp, @ ‘AT _ Identify the six (6) main reasons for the failing of planning in developing countnes © Identiiseer die ses (8) hoofredes vir die mislukking van beplanning in ontwikkelendelande (6) QUESTION B1/VRAAG B1 11 According to Sen's Capabilities Approach we should consider the advantages denved (functionings) from income rather than the actual real income (commodities) when we determine the level of development Give five possible reasons why there may be a difference between real income and its functionings (10) Volgens Sen se ‘Capabilities Approach’ moet ons eerder kyk na voordele (funksionalitert) wat voortvioe! uit die besit van reéle inkome (kommoditeite) as na die inkome self as ons die viak van ontwikkeling wil bepaal Gee vyf moontlike redes waarom daar ‘n verskil kan wees tussen funksionaliteit en reele inkome 12. Discuss and evaluate the Lewss Theory of Development (10) Bespreek en evalueer Lewis se Teone van Ontwikkeling [20] [TURN OVER} [BLAAI OM]ECS207G 40/14 2010 QUESTION B2/VRAAG B2 21 Explain and interpret the information in the table below Relatve | HDivalue ] RealGDP | GDP rank Ginr HDI ranking percapita | minusHDI | coefficient rank ‘Tanzania 162 0.430 674 +13; 0346 Nigena 159 0448 1154 4 0.437 ‘South 721 0653 11 192 86 0578 Ainca Chile 38 0.859. 10874 +18 0571 Verdutdelik en interpreteer die inigting in die tabel hreronder (12) Relatiewe | MOlwaarde | Reéle BBP | BBP rang Gint MOI rang per capita | minus MO! | koéffisiént rang 162 0.430 674 +13; 0.346 159) 0.448 1154 4 0.437 121 0653 47 192 ~66 0578 36. 0859 0874 HE, Os7t 22. Differentiate between the demographic transition processes in the developed vs the developing countnes co) Differensieer tussen die demografiese oorgangsprosesse in die ontwikkelde vs die ontwikkelende lande QUESTION B3/VRAAG B3 31 Discuss the educational gender gap in detail and explain why it should be eradicated Bespreek die onderwys-gestags-gaping in detail en verduidelk waarom dit uitgewis moet word [20] 6) 32. In terms of accepted economic theory, developing countries should promote exports for economic growth Explain why developing countnes find it dificult to increase their exports of both pnmary and manufactured goods (14) Voigens aanvaarde ekonomiese teone moet ontwikkelende lande uttvoere bevorder vir ekonomiese groet, Ontwikkelende lande sukkel egter om hul uitvoere van beide pnmére en vervaardigde produkte te verhoog Verduidelik waarom (20) ITURN OVER] [BLAAI OM)5 ECS207G6 40/11 2010 QUESTION B4/VRAAG B4 41. Differentiate between an economic plan and economic planning 2 ‘Ondersket tussen 'n ekonomiese pian en ekonomiese beplanning 42. Explain the role and limttations of markets in developing countnes (10) Verduidelik die rol en beperkings van markte in ontwikkelende lande 43 Differentiate between the Washington Consensus and the Santiago Consensus ® Onderske! tussen die Washington Konsensus en die Santiago Konsensus (20) (TURN OVER} [BLAAI OM]At 6 Ecs2076 10/11 2010 SECTION.A COMPULSORY x a 7 “ AFDELING‘A VERPLIGTEND Economic development was traditionally measured by means of the GDP per capita but was recently replaced by the Human Development Index (HDI). Explain what components of development is measured with this new tool and evaluate its advantages and disadvantages as a tool of measuring development ©) Ekonomiese ontwikkeling 's tradisioneel gemeet deur middel van BBP per capita maar 1s onlangs vervang deur die Mensiike Ontwikkelingsindeks (MOI) Verduidelik water komponente van ontwikkeling deur hierdie nuwe instrument gemeet word, en evalueer die voordele en nadele daarvan as metingsinstrument ITURN OVER} [BLAAI OM)ECS207G 40/11 2010 A2__ Give a comprehensive descnption and evaluation of the Gini coefficient ® Gee ‘n omvattende verdurdeliking en evaluenng van die Gini koéffisiént.8 ECS2076 10/14 2010 A3_ The debate on whether high population growth 1s good or bad for economic growth and development is stil not resolved Four points of consensus have however been reached on the 1ssue of population growth that can be used for policy formulation Identify these points of consensus (4) Die debat rondom die effek van hoé bevolkingsgroei op ekonomese groei en ontwikkeling 5 nog nie bygelé nie Vier punte van konsensus oor bevolkingsgroei bestaan egter reeds ‘en kan gebruik word vir beleidsformulering Identifiseer hierdie wer punte van konsensus9 ECS207G 10/11 2010 ‘M4 Explain why education and health are considered to be joint investments in development Oy Verdusdelik waarom onderwys en gesondheid beskou word as 'n saamgevoegde belegging in ontwikkeling (TURN OVER] [BLAA! OM]10 ECS207G 10/11 2010 AS Argue for and against foreign direct investment (FDI) from a developing country’s point of view (10) Stel die argumente vir en teen buitelandse direkte investering vanuit ‘n ontwikkelende land se gesigspunt. [TURN OVER} [BLAA! OM]14 ECS2076 10/11 2010 ‘AB _ State the different opinions of the proponents for and the opponents of foreign aid 2 Gee die verskillende opinies van die voorstanders sowel as die teenstanders van butte- landse hulp [TURN OVER} [BLAAI OM]Ecs207G 1041 2010 AT _ Identify the sxx (6) main reasons for the falling of plannung in developing countnes © Identifiseer die ses (6) hoofredes vir die misiukking van beplannung in ontwikkelende tande TTURN OVER] [BLAAI OM]13 Ecs207G 10411 2010 [TURN OVER] [BLAA! OM]z 23 83 QUESTION B1/VRAAG B1 1 According to Sen's Capebilites Approach we should consider the advantages denved (functionings) from income rather than the actual real income (commodities) when we determine the level of development Give five possible reasons why there may be a difference between real income and tts functionings (10) Volgens Sen se ‘Capabilties Approach’ moet ons eerder kyk na voordele (funksionalitert) wat voortvicei utt die besit van reéle inkome (kommoditeite) as na die mkome self as ons die viak van ontwikkeling wil bepaal Gee vyf moontlike redes waarom daar 'n verskil kan wees tussen funksionaliteit en reéle inkome [TURN OVER]12 10/11 2010 Discuss and evaluate the Lews Theory of Development. (10) Bespreek en evalueer Lewis se Teone van Ontwikkeling [TURN OVER] [BLAAI OM]Ecs207G 10/11 2010 TTURN OVER] [BLAAI OM]ECS207G6 10/11 2010 [20] QUESTION B2VRAAG B2 21. Explain and interpret the information in the table below Relaive | Hbivalue | RealGDP | GDP rank Gini HDI ranking per capita | minusHDI | coefficient rank Tanzania | 162 0430 674 +13 0346 [Nigeria 159 0448 7 154 A 0.437 ‘South 121 0653 11192 “68 0878 Attica Chile Et] 0859 70874 +8 0871 \Verdurdelik en interpreter die inigting in die tabel hieronder: (12) Relatewe | MOlwaarde | ReéleBEP | BBP rang Gini MOI rang percapita | minus MOI | koéfisient rang, Tarzan | 162 0450 674 +43 O56 [Niger 159 0-448, 1154 =A 0.437 Suld- 721 (0653 11 192 “66 0578 atnka Chile ES 0.858 10874 +18 os7i (TURN OVER]18 ECS207G6 10/14 2010 ITURN OVER} [BLAAI OM]19 Ecs207G 10/11 2010 22. Differentiate between the demographic transition processes in the developed vs the developing countnes Differensieer tussen die demografiese oorgangsprosesse in die ontwikkelde vs die ontwik- kelende lande. [TURN OVER] [BLAAI OM)20 Ecs207G 10/11 2010 {20} QUESTION B3/VRAAG B3 31. Discuss the educational gender gap in detail and explain why it should be eradicated. ® Bespreek die onderwys-gestags-gaping in detail en verduidelik waarom dit uitgewis moet word [TURN OVER] [BLAA! OM]21 Ecs207G 40/11 2010 [TURN OVER] [BLAA! OM]32 22 £CS207G 40/11 2010 In terms of accepted economic theory, developing countries should promote exports for economic growth Explain why developing countnes find it dificult to increase their exports of both primary and manufactured goods (14) Volgens aanvaarde ekonomiese teone moet ontwikkelende lande urtvoere bevorder vir ekonomiese groei Ontwikkelende lande sukkel egter om hul uitvoere van beide primére en vervaardigde produkte te verhoog Verduidelik waarom [TURN OVER] [BLAAI OM]23 ECS2076 10/11 2010 [TURN OVER] [BLAA! OM]24 ECs207G 40/11 2010 QUESTION B4/VRAAG B4 41. Differentiate between an economic plan and economic planning 2 Onderske! tussen ‘n ekonomiese plan en ekonomiese beplanning 42. Explain the role and limitations of markets in developing countnes (10) \Verduidelik die rol en beperkings van markte in ontwikkelende lande [TURN OVER] [BLAAI OM]25 ECS207G 10/11 2010 [TURN OVER] [BLAAI OM)26 ECS207G 40/14 2010 43. Differentiate between the Washington Consensus and the Santiago Consensus ® Ondersket tussen die Washington Konsensus en die Santiago Konsensus (20) [TURN OVER] [BLAAI OM]27 ECS2076 10/11 2010 [TURN OVER] [BLAAI OM]28 ECS207G 10/11 2010 TOTAL 100 [TURN OVER} [BLAAI OM]29 ECS207G 40/11 2010 ‘ADDITIONAL SPACE TO ANSWER QUESTIONS OR FOR ROUGH WORK/ ADDISIONELE SPASIE VIR ANTWOORDE OF VIR ROFWERK [TURN OVER] [BLAAI OM]30 ECS2076 10/11 2010 ‘ADDITIONAL SPACE TO ANSWER QUESTIONS OR FOR ROUGH WORK/ ADDISIONELE SPASIE VIR ANTWOORDE OF VIR ROFWERK © UNISA 2010