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1.

Does the rising segment of the inverted U-shaped curve imply that the poor
suffer from economic growth?
No. The rising segment of the inverted U-shaped curve indicates that
income shares (not necessarily income) of the poor and other low-income groups
decline.

2. Why are cross-national income distribution data for different per-capita income
levels at a given time inadequate for generalizing about income distribution
changes with economic development over time?
Time series data for individual countries are scarce and unreliable.
Moreover, many LDCs have not yet arrived at a late enough stage of
development to test the declining portion of the upside-down U curve. The only
data available are for cross-sectional data at a given time (as those by Adelman
and Morris discussed on pp. 186-187), not necessarily indicative of economic
development trends over time. Thus, whereas the historical growth of early
industrializing Europe suggests an inverted U, the evidence for today’s LDCs is
too mixed and inconclusive to confirm the Kuznets curve.

3. Which policies do you think are most effective in reducing poverty and income
inequality in developing countries?

For me it is the agrarian reform and the land distribution. Just like Albert
Berry and William Cline (1979) who finds an inverse relationship between the
size of plot and land productivity. It may help for the farmers to have their own
way on how to use the land that they give to them and also they may use it to
provide them for living and lastly it may become their own source of income
which may help the government to reduce the poverty.

4. Discuss why LDC women have higher poverty rates than men. What LDC
policies would reduce female poverty rates?
Because that time for them women has no capability to work like a men. In
some countries they find women as worthless. In terms of education men is
better than women. When the advancement of technologies occur women has no
capability or has no ability to work like a man does. A discrimination occurs in
some countries which women has no capability to defend themselves

5. Is there a tradeoff between LDC policies seeking to reduce income inequality and
those trying to stimulate growth? Does the tradeoff vary among different LDCs?
No, for the reason that poor data may make it difficult to generalize about
the tradeoff between income inequality and growth in LDCs. Earlier economists,
especially those associated with planning in Pakistan, were convinced that there
was a tradeoff that is fast growth required sacrificing income distribution
objectives. However, since Persson and Tabellinis empirical analysis in 1994,
more economists support the argument that inequality is harmful to growth. The
tradeoff is likely to vary from one LDC to another.

6. What conditions do you think are necessary for economic inequalities to con-
tribute to war and political violence?
Low per-capita income, predatory rule, a condition of relative deprivation,
and a weak or failing state with extensive rent seeking, along with economic
inequality, may contribute to war and political violence. Research on this is not
adequate to indicate whether these variables are necessary or sufficient.

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