Development Economics

The main purpose of this section is to provide students with the opportunity to understand the problems faced by developing countries, and to develop an awareness of possible solutions to these problems.

Throughout the course, students are introduced to several important concepts in development economics and, in particular, to the fundamental distinction between economic growth and economic development established in macroeonomics section. This important distinction needs to be re-emphasized at the beginning of this section.Given the dynamic nature of the international economy, it is problematic to group countries into clearly established categories such as developed, developing, newly industrialized countries (NICs) and transition economies. However, students should understand current terminology and be aware that similarities and differences exist within different categories. It is important for teachers to help students find relevant examples of the different categories of countries.

Topics covered in IB Development Economics

• Economic development
• Measuring development
• The role of domestic factors
• The role of international trade (one topic HL extension)
• The role of foreign direct investment (FDI)
• The roles of foreign aid and multilateral development assistance
• The role of international debt
• The balance between markets and intervention