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A2 Development Economics Assignments
10th October 2012
Here are the two assignments that my students are writing about this week - I will post some of their answers on the blog at the weekend. I have also added in some research links to each question
1/ Natural Resource Curse
According to the World Bank, strong economic growth in the past decade among African countries rich in oil and minerals has failed to make a significant dent on their poverty levels. The decline in poverty rates in resource-rich countries has generally lagged behind that of countries without riches in the ground. Some countries, such as Angola, Congo-Brazzaville and Gabon, have witnessed an increase in the percentage of the population living in extreme poverty.
Research links:
- Africa's natural resources can be a blessing not a curse (Guardian)
- Africa's mineral wealth hardly denting poverty levels (Guardian)
- Boom time for Mozambique (Guardian)
- Poverty matters - natural resources and development (Guardian)
- Natural resources - curse or blessing, keynote talk by Paul Collier
- Lifting the resource curse (Oxfam policy paper 2009)
- Chile - the natural resource curse strikes again (Project Syndicate, October 2012)
Question: Explain why wage inflation is high in the Chinese economy and
evaluate the argument that rising wages provide more of an opportunity
for Chinese growth and development than a threat (20 marks)
Research links:
- Inflation, wages and economic growth (Economist)
- Manufacturing - the end of cheap China? (Economist)
- FoxConn worker strike (Guardian, Oct 2012)
- China - has it reached a Lewis Turning Point? (FT)
- A turning point for China? (Stephen Roach, Project Syndicate)
- China's war on inequality (Fan Gang, Project Syndicate)
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.