Instruction:Discuss each of the questions in detail and try to mention some real world examples
for the questions as much as possible.
Individual Assignment
1. Why are similar rates of growth associated with different rates of poverty reduction?
2. “Growth is bad for the poor. They are marginalized from modernization, so inequality
rises and even absolute poverty may rise as jobs disappear.” Discuss on the validity of
this statement.
3. “Poverty/Inequality-reduction programs are bad for growth and redistribution curtails
incentive for saving and work.” Can this statement be right? How?
4. Define what development means and then differentiate it from economic growth
5. Is there a level of inequality which is acceptable in that it does not endanger unacceptable
occurrences of poverty?
6. What are your comments on the four measurements of development in the context of
Ethiopian Economy?
7. How does the concept of “capabilities to function” help us gain insight into development
goals and achievements? Is money enough? Why or why not?
8. Do you think that there is a strong relationship among health, labor productivity, and
income levels? Explain your answer.
9. Can you think of an example of O-ring production from everyday life? Do you think your
example is a good metaphor for development problems?
10. Why is the government sometimes a part of the problem of coordination failure rather
than the solution? Does this make the problem hopeless? What could be done in this
case?