Economics of Growth and Development (EGD 3872)

Test 2

Date: 27 September 2018

Duration: 8:30 – 9: 45

Marks: 50

Question 1

a) Suppose you are development planner in your area, write a report instituting the strategies to
bring development in rural areas. (Note that on your discussion must include land ownership,
government policies, and institutional reforms. (8 marks)

b) Sub-Sahara Africa is facing a problem of raising more domestic resources which is necessary for
economic development. Briefly explain the challenges associated with domestic resource
mobilization in Sub-Sahara Africa and what policy recommendation you suggest to solve that
challenges. (8 marks)

Question 2

a) Explain the role of financial Intermediation in economic growth and development. ( 8 marks)
b) Use diagram discuss and explain Todaro immigration model. (10 marks)
c) Southern Africa countries are facing a problem of high population growth. Explain different
population policies they implemented in order to mitigate population growth. (5 marks)

Question 3

You are given information for Namibia unemployment rate as presented below

Age group Weight of age group Unemployment rate (%)

18-25 0.4 51
26-35 0.2 37
36-45 0.15 12
46-55 0.20 5
56-65 0.05 10
Total labor force: 25 000

(a) How many people fall under the age groups of 18-25, 26-35, and 36- 45 and 56-65? (4 marks)

(b) Calculate total unemployment rate (2 marks)

(c) What policies the government can implement in order to reduce unemployment in the age
groups 18 – 25 and 26-35. Give local examples. ( 5 marks)