IB Economics Name ______
Unit 5: Development Economics
Development Unit Cumulative Assignment
Goal: To win a concessionary loan from the World Bank to put towards a specific development project in the developing country you represent. Funds are extremely limited, and whether or not you will receive aid and how much aid you receive will be determined by a panel of judges consisting of your classmates.
Background: You will assume the role of Finance Minister for a country that you chose to research earlier in this unit. In that role, you will write a detailed report of your country’s development status, obstacles to economic development, existing resources and potential within the country, concluding with a proposal for a specific development project that will improve human welfare in your country. You will then make an appeal to lenders at the World Bank, requesting funding for your project. A committee made up of your classmates will decide whether to approve requests and bring them to the chief economist of the bank, your teacher. The best proposals (accurate, appropriate, achievable) will get the limited money available…and those students will earn the best marks.
Assignment: You will create a report for the country you selected in our earlier lesson, “Sources of Economic Growth and Development”. You will have class time over the next three weeks to research and prepare your report. The report may take any form you wish: It can be a written report to be delivered orally, it may be in the form of a Google Presentation, or it could be a video, such as a PhotoStory. You may also create a website containing the details of your report, or even an audio recording that could be podcasted in your appeal for financial support. Any other reasonable media may be used to prepare and present the report.
Resources online:
1. The World Bank Countries and Regions
2. CIA – the World Factbook
3. African Development Outlook
4. African Development Bank
Content Requirements: Reports will contain the following four sections.
1. Current Development Status: Describe your country’s status along the spectrum of economic development. Focus on factors such as the following: Natural factors (land resources, geography, location), human factors (health, education), economic factors (GDP per capita, unemployment, inflation, economic makeup of country) physical capital and technological factors, political and institutional factors, externalities, income distribution and sustainability.
2. Obstacles to Development: From the data presented in part 1, what would you consider to be the key internal factors preventing the further development of your country? What would you consider to be the key external factors preventing the further development of your country? Some obstacles to economic development you may focus on are:
· Poverty cycle or poverty traps: conflict trap, natural resource trap, geography trap, education/poorgovernance trap, etc…
· Institutional and political obstacles: ineffective taxation structure, lack of property rights, political instability, corruption, unequal distribution of income, formal and informal markets, lack of infrastructure
· International trade obstacles: overdependence on primary products, consequences of adverse terms of trade, consequences of a narrow range of exports, protectionism in international trade
· International financial obstacles: indebtedness, non-convertible currencies, capital flight
· Social and cultural obstacles: religion, culture, tradition, gender issues
3. Resources and Potential: Describe the internal and external advantages your country possesses that will enhance its chances for development. What geographical, social, institutional/political, economic, technological, or other advantages does your country already possess that make it a viable candidate for external aid. Convince your audience that your country is a worthy aid recipient and will put resources to use responsibly towards socially and economically beneficial ends. Why should YOU receive scarce foreign aid?
4. Formal Proposal: Propose a specific plan to speed development and improve the welfare of the people in your country. This part is to be more extensive and should include:
· Project type (infrastructure investment, fair trade organization, micro-credit scheme, health or education initiative, environmental or social project)
· Project goals, specific details about who, what, when, where and how the project will promote human development in your country.
· Examples of similar projects that have been successful in other developing countries
· Financial analysis of project: Detailed cost estimates, expected rates of return, a repayment schedule detailing how and when the development loan will be repaid.
Week 1: Choose the medium you will use for your report and the country you will represent. Research part 1: “Current Development Status” Due 4/19.
Week 2: Continued research on parts 2 and 3: “Obstacles to Development” and “Resources and potential”. Progress update due to teacher by end of week. Due 4/23
Week 3: Research complete, create formal proposal with required detail. One day dedicated for peer editing: each student must peer edit two other student’s reports and have theirs reviewed by two classmates on 4/30.
Week 4: Completed reports due 5/5. Report presentations and proposal review process. Funds rewarded and grades given by end of week.
Distribution of Funds:During week 4, students will present their development reports and proposals to the loan committee. Following each presentation, the committee members (students) will complete a brief evaluation of which will be submitted to the World Bank’s chief economist (the teacher) for review. Final distribution of fund (and grades) will be determined by the chief economist. The countries whose reports best fulfill the above criteria will receive the most funds and the highest grades. Reports failing toadequatelyfulfill the above criteria will receive fewer of the requested funds (and a lower grade).
From: http://welkerswikinomics.com/blog/2010/03/03/1457 see examples on this page
This assignment will be one of only four grades you will receive during the final semester of IB Economics. Below are the other assignments that will make up your grade.
· Adopt-a-Country Development Report: 25%
· Economic Development Test: 25%
· IB Economics Mock Exam: 25%