Dr. Don J. DeVoretz Feb. 11, 1998

Dept. of Economics

Simon Fraser University Name__________________

ID # __________________

Part A: Short answer: Each question worth 10 points. Use information from your country when appropriate.

1. Calculate the required amount of net savings for your country to growth at 2.5 per cent per annum in its income per capita given your country's population growth rate.

Repeat the above exercise assuming that your country did not change except that it had Canada's population growth rate ( approximately 1/2 of per cent).

2. Your country requires both imports and foreign investment to grow. With the aid of the Balance of Payments schedule explain the mechanisms to finance the required imports and the necessary foreign investment.

3. The labor surplus or W.A. Lewis model argues that under certain conditions excess labor could be converted to a growth force.

a. Explain the several stages of the W.A. Lewis model

b. Next, where is your country in the model ?.

c. Has your country achieved the balanced growth path of Lewis with no urban un(under)employment?

4. The demographic transition theory argues that as development proceeds a country will pass from stage one or two through to stage four.

a. Outline the four stages of the model and explain what demographic factor drives each stage.

b. Place your country in its current stage and add the correct numbers to the diagram

c. What prevents your country from moving to the next stage ?

d. If your country moved from its current stage in the demographic transition theory to stage IV how fast would your country now grow?

Part B. Each question is worth 20 points:

1. With the aid of your newspaper article critically evaluate the article using principles contained in the course to date.

2. The Year of Living Dangerously contains many themes related to the first half of the course.

Outline how the movie documents the social and economic indicators of development and the political and military impediments to economic development. How does your country compare in terms of indicators and social-political milieu to the movie.