CHAPTER 3

1. Explain the essential distinctions among the stages-of-growth theory of development, the structural-
change models of Lewis and Chenery, and the theory of international dependence in both its neo-Marxist
and false-paradigm conceptualizations. Which model do you think provides the best explanation of the
situation in most developing nations? Explain your answer.
 The Lewis model, also known as the two-sector model and the surplus labor model, emphasized the
need for countries to shift their structures away from agriculture, which has low labor productivity,
and toward industrial activity, which has high labor productivity.
 According to Chenery's model, economic development is a set of interconnected structural changes
in an underdeveloped economy that are required for its transformation from an agricultural
economy to an industrial economy for continued growth, in addition to the accumulation of capital,
both human and physical.
 The theory of international dependence seeks to explain the current underdevelopment of many
nations around the world by examining patterns of inter-national interactions and arguing that
inequality among nations is an inherent part of those interactions.
 I believe that no single, perfect model can be used by a country. Developing countries should
evaluate what is a good opportunity for them and ask themselves what resources they have
available. Countries can select parts of every model they are familiar with that are effective,
relevant, and adoptable for the current situation and the type of opportunities/resources/problems
they are currently confronted with. They may take some ideas from various models that are
beneficial to their economy.2. Explain the meaning of dualism and dual societies. Do you think that
the concept of dualism adequately portrays the development picture in most developing countries?
Explain your answer.
2. Explain the meaning of dualism and dual societies. Do you think that the concept of dualism
adequately portrays the development picture in most developing countries? Explain your answer.
 The term dualism denotes the presence of both desirable and undesirable situations of phenomena
that are mutually exclusive to various groups of society (growth and stagnation) (rich and poor). It
is a concept that represents the existence and persistence of growing disparities between rich and
poor, both globally and nationally. The existence of rich and poor nations on a global scale, as well
as a few rich people accompanied by a majority of poor people in developing countries, is referred
to as dual society. It is a society in which two distinct sectors coexist. These sectors are separated
by different levels of development, technology, and demand patterns. The rural are unskilled and
illiterate, while the urban are educated and skilled. Some are better than others and can coexist.
Rich countries unquestionably wield power over poor countries. Coexistence is ongoing, not just
transitory. Superiority and inferiority have a natural tendency to grow, and superior elements do
little or nothing to lift the inferior element.
3. Some people claim that international dualism and domestic dualism are merely different
manifestations of the same phenomenon. What do you think they mean by this, and is it a valid
conceptualization? Explain your answer.
 The concept of dualism refers to situations that are mutually dependent on one another. When
there are rich people, there are poor people as well. Although international dualism is on a larger
scale than domestic dualism, the terms rich and poor are still applied to both. It is not a valid
conceptualization in my opinion because, while rich countries exist, poor countries do not rely on
them for development due to their diverse situations and resources. According to the logic of
dualism, rich countries develop while poor countries do not, which are unrelated, but dualism can
be applied to some factors.

CHAPTER 4
1. Can you think of additional examples of complementarities from everyday life? Does the S-shaped
curve of Figure 4.1 shed any light on them? Do you think your examples help as a metaphor for economic
development problems?
 The expansion of the economy, which leads to full employment.
- As the number of diesel fuel stations increases, so does the number of diesel cars on the road.
Individual household or business borrowings are increasing, causing internet bank returns to rise.
The central premise is that economic agents' rewards are contingent on the number of other
agents who will support one of their initiatives. The curve rises initially at an increasing rate, then
falls. This is because economic agents have an incentive to delay their move until more agents join
them.
2. What role do you think international trade and foreign investment can play in solving some of the
problems identified in the big push model? In the O-ring model? What limitations to your arguments can
you think of?
 According to the big push model, a firm's decision to industrialize or not is influenced by its
expectations of what other firms will do. The O-ring theory assumes that the manufacturing
process should be carried out by people with comparable skill levels. This implies that highly skilled
workers should collaborate with similarly skilled workers rather than with unskilled workers. This is
because a group of highly skilled workers will speed up the production process. Thus, international
investments and foreign trade will benefit a country's development only if there are enough highly
qualified individuals available to understand the investment terms and conditions; otherwise, the
economy will become trapped in a product quality trap.
3. The word trap suggests that there may be a way to escape. Do you think developing countries can
escape all of the traps described in this chapter? Which ones would be most difficult to escape?
 Even if a trap suggests that there may be an escape, I doubt that developing countries will be able
to avoid all of the traps mentioned in the book. However, it isn't a bad thing to wish for the
possibility that it is. I believe the most difficult is the poverty trap, because the middle-income trap
is much easier to address through policies and the like. Underdevelopment traps, on the other
hand, can be addressed by developing policies and increasing support, particularly from the
 government. A poverty trap is the most difficult to avoid because it is a cycle that is difficult to
break, especially because it leads to a population trap. It would be extremely difficult for the
government and other governing bodies to contribute to the improvement of their country's
situation.
 Because there is little to no opportunity for some families, communities, or nations in the poverty
trap, developed countries could lend money to the government or provide opportunities for the
people. Offering jobs is an example of an opportunity. Scholarships would also be beneficial
because education opens up many doors. Finally, I believe that developed countries can help
developing countries by providing them with useful information about growth and development,
particularly how to avoid the traps that developing countries face.
 Developed countries can do more to address poverty traps in their own countries because, in
comparison to underdeveloped and developing countries, a small portion of their population may
only experience poverty traps. Furthermore, I believe they can address the other two traps, middle-
income and underdevelopment, more easily than other types of countries because they have more
resources and capabilities to deal with them. Developed countries can do more to assist developing
countries. I believe that if they valued equality more and wanted each and every country to
succeed, they could be of greater assistance to developing and underdeveloped countries.