UAS Ekonomi Pembangunan

UJIAN AKHIR SEMESTER GASAL 2011/2012

Mata Kuliah   : Ekonomi Pembangunan

Dosen              : Rusan Nasrudin, S.E., MIDEc

Question 1

Given constraints on modern sector growth, there is argument that the informal sector should be promoted as a major source of employment and income for the urban labor force.

• Explain graphically using Harris-Todaro Model to the validity of the claim that states the role of informal sector as source of employment! Debate the pros and cons of promoting the informal sector!’
• Explain why policies designed to reduce urban unemployment may not greatly reduce poverty in developing countries!
• Explain some important policy measures that you would expect to reduce excessive rural-urban migration! Explain!

Question 2

Realizing the common characteristics of agriculture in developing economies, it is imperative to emphasize that a country’s development strategy must include plans for achieving agricultural progress and rural development.

• Explain the common characteristics of agrarian system in the developing economies! Identify characteristics that are not advantageous for these countries!
• What are the primary determinants of agricultural labor productivity?
• Explain the concept, goals, and methods of integrated rural development!

Question 3

The role of the environment in economic development has received a tremendous amount of attention recently. This due to the environmental consequences associated with many economic decisions and development problems. In this context, discuss the following:

• Provide a short definition of sustainable development!
• Growth and environmental quality can be both complements and substitutes. Using simple microeconomic models, discuss the relationship between growth and the environment!
• In the case of what developed countries can do to respond constructively to the environmental damage being done in developing countries, identify and briefly explain policy issues to poverty and environment!

Question 4

The central importance of international trade in economic development is on the relation between theoretical arguments and statistical evidence.

• Using one of neoclassical model of international trade, explain the traditional arguments for the impact of trade upon development!
• Analyzes the implications of the assumptions of the theory that are typically violated in less developed countries!
• When and under what circumstances is intervention in international trade justified on market correction grounds? What preconditions would have to be met from the government side for there to be a reasonable likelihood of success?

Question 5

Examining international flow of financial resources to developing economies weights the pros and cons in the different forms.

• Provide a concise statement on the relationship between multinational corporation investment and economic activity in developing countries with respect to: comparative advantage, the debt crisis, scale economies, and pattern of consumption!
• Explain the motives of developed countries in providing foreign aid!
• Why does multinational corporation investment not necessarily offer the advantage of domestic employment expansion?