Using named examples, assess the advantages and disadvantages of top down and bottom up development strategies (15 marks) Development is the ways in which a country seeks to develop economically and to improve the standards of living for its inhabitants. Numerous development strategies both top down and bottom up can be used by countries to help them progress. However, while these may be advantageous in certain areas, not all strategies are as effective everywhere and thus problems can arise with top down and bottom up development schemes. Top down strategies are generally capital-intensive and often conducted by the government. The main criticism of these schemes is the fact that the money which is supposedly meant to aid the poorest people in the country who are most in need is actually diverted to those who are richer instead.
Explain how fiscal policy might be used to bring about supply-side improvements to an economy. [15] K2 K2 K2 K2 Fiscal policy is the manipulation of public spending, taxation and borrowing to achieve the government’s macroeconomic objectives. For example an increase in government expenditure or a reduction in income tax should increase aggregate demand and real output. Fiscal policy is also used to improve the supply-side performance of the economy by affecting incentives to work and incentives to invest. Such policies aim to increase the capacity of the economy to produce more goods and services by increasing the quantity or quality of the factors of production.
Innovation impacts the cost of production as well. Even the innovation helps in lowering the cost of production and making economies more efficient – producing more outputs with the same number of inputs. Technology affects market structure. In today’s market world, technology advances more rapidly because individuals gain incentives, in the form of profits, to discover new and cheaper ways of doing things. Even the dynamic efficiency refers to a market’s ability to promote cost-reducing or product-enhancing technological change.
This will mean the population will have more money which will go into the economy, this will mean more income for improving infrastructure and services. Also as TNCs move to other countries, job opportunities increase which means that the quality of life will generally improve too. Another benefit would be that the status of an area would be raised; this may encourage investment by other big name Multi-Nationals and most importantly will improve the countries economy drastically as valuable export revenues will be earned. Most important, they will benefit from cultural exchange creating a cultural integration. LEDC countries do not benefit as much as MEDC countries do, for example, sometimes much of the employment is low paid, low skill, long hours, meaning that the countries do not develop economically or give the opportunity to develop their skills.
These views where portrayed by many liberal philosophers such as Adam Smith, in regards to economic management; he believed that free trade and free markets where fundamental to successful economic growth, as individuals, consumers and business would create competition and feel confident within the economy. However more modern liberals believe in a form of positive liberty (More state intervention for progression by providing individuals with the tools to create a basic standard of living to develop their social and economic lives, with systems such as welfare) TH Green believed there was a need to embrace positive liberty as he stated that individual liberty was only achievable under favourable social and economic circumstances (Creating the welfare system). However today’s contemporary liberal democrats have a combined belief of both positive and negative liberty. There is potential to suggest that there is a contradiction within the lib dems with regards to their position on the state. Liberal philosophy clearly remains at the heart of the liberal democrat party.
Approaches of Henry George and Walter Rauschenbusch Henry George offered a single value tax on land property. This tax would be so large that it would give an incentive for the owner to use the land in a productive way. Doing so would create wealth and jobs in response to the ongoing poverty and social problems. Henry George used a more logical and radical approach when coming up with this solution. As economic growth occurred, so did technological advances.
If resources are allocated properly an effectively run government crime prevention program is invaluable. The cost-benefit analysis suggests that an economic activity should be expanded as long as the results provide more benefits than the overall costs. In both the U.K. and the U.S. the taxpayers are required to foot the bill for an ever-expanding crime prevention program. However, it is safe to assume that most individuals would rather invest in their own personal safety as well as the safety of their communities. A safer society would also see long-term economic benefits such as overall increase in GDP.
To what extent is the UK's economic growth sustainable? Sustainable development is a pattern of economic growth in which resource use aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come. The current UK government supports the concept of sustainable development and focuses on a few main objectives which are social progress which recognises the needs of everyone where everyone should share in the benefits of increased prosperity and a clean and safe environment. Effective protection of the environment which is where we must limit global environmental threats, such as climate change; to protect human health and safety from hazards such as poor air quality and toxic chemicals. Also, careful use of natural resources where we need to make sure that non-renewable resources are used efficiently and that alternatives are developed to replace them in due
In order to help the economy’s growth in the future Government spending can be used if used for extra capital spending. This leads to an increase in the stock of national assets. For instance, an increase in the transport infrastructure will improve the supply-side capacity of the economy which will promote growth. This is estimated through the cost-benefit analysis. Another, way to establish growth in the future would be to use budget deficit as a tool or demand management.
I argue other wise immigrants are usually skilled labor and they help increase the local production of the United States. Immigrants tend to send their US dollars outside America to their families, and this strengthens the value of the dollar, making it more valuable, thereby making the economy of US stronger. Having a variety of cultures helps people understand and learn from each other. Taking immigration away would hurt this country not only economically but also