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Home Worksheets Growth and Development

Development and Growth Worksheet

A printable version of this worksheet is available for classroom or personal use with spaces to fill in the answers.

Introduction

Economic growth and development are not the same concept although they are often mistakenly used interchangeably. This worksheet aims to help make you aware of the difference between the two terms.

Step 1

1. What is the definition of economic growth? You may find the glossary helpful.

2. Use the data in the resources section to go to the national income accounts (output method) calculated at constant prices and use the data to complete the table below.

3. Find the population of Zambia over the same period and enter that as well.

4. Calculate the GDP per capita at constant prices i.e. the real GDP per capita and enter the answers in the final row of the table.

5. Plot the real GDP per capita from 1990 to 1997. (You may find it easier to use a spreadsheet)

6. During the period has the economy of Zambia experienced economic growth? What is your evidence of this? (Refer in detail to the data)

7. Is there any evidence for the existence of the trade cycle? On the graph that you have plotted mark any of the following phases of the trade cycle that you can observe.

• Recession
• Slump
• Growth
• Boom
• Upper turning point
• Lower turning point

8. Return to the data on the National Income Accounts by output at constant prices. Look at the different sectors of the economy. Identify which sectors have grown and which sectors have declined.

Step 2

Investment is a very important factor influencing the level of economic growth. Improving the quantity and quality of the factors of production raises the productivity of other factors of production.

1. Using a spreadsheet and the data in the resources section, plot the level of Gross Domestic Investment as a % of GDP between 1990 to 1997.

2. Is there any relationship between the level of real GDP per capita calculated in Step 1, and the level of investment as a % of GDP? (Refer to the data to justify your answer)

3. Does it support the view that investment is essential for economic growth to take place?

4. Why do you think the levels of private investment (shown in the table above) in Zambia are so much lower than in most More Developed Countries (MDCs)? Give four reasons.

5. How can the level of investment be increased? Suggest three ways.

Step 3

Check your understanding of the term economic development. The glossary may help with this.

1. Write down five indicators that would suggest that a country is experiencing low levels of development. For each indicator give an example from the Zambian economy and from a More Developed Country. Use the data in the resources section to find recent figures for each indicator.

The Human Development Index (HDI) is a composite indicator produced by the United Nations Development Programme. Read the theory section on composite indicators of poverty and living standards in the Rural Life and Agriculture tour for more detail on this.

2. What single indicators are combined to construct the HDI?

3. In the table below six countries are listed giving their HDI. Three other indicators of development are given for each country. For each indicator rank the given countries data. (Give a 1 to the indicator denoted the highest degree of development and 5 to the least.

4. Are the rank orders the same for all indicators? Would you expect this to be the case? (Give reasons for your answers)

5. Is the HDI a good overall indicator of development? (Justify your answer)

Step 4

Use the theory section of the Copper Tour to read about Rostow's model of the stages of economic development and Lewis's model of development.

1. For each model write a paragraph giving your views of the relevance of the model to the economic development that you have seen in Zambia.

2. Which seems more appropriate? Why?

3. Look at the data in the resources section for the % of people employed in the agriculture, industrial and service sector between 1960 and 1998. Is there any evidence to support Fisher Clark's theory of structural change?