Quiz 22: Macro Policy in Developing Countries
Developed nations are considered rich and have high per capita income. They have better technology and institutions to support their economy. While the developing nations are growing nations once considered to be poor, having high growth rate. They haveIf a person finds himself in a por country then he will not have access to better technologies and institutions. One has now had to work for a greater number of hours to earn same amount of money as he was earning before. He has to save more to cover himself for future emergencies and health issues because he will not get support from government. He was able to enjoy technological benefits which he will now be able to enjoy, and has to be careful with the weak institutions of the country as well.
(a) In the light of the basic Biblical norms of justice, righteousness, and stewardship, a nation should provide as much aid as it can provide to developing countries. A developed nation should take into account the quantum of poverty, hunger, and need for development of a developing country while providing aid and should not shy away from making aid because lack of capital is main reason that many developing countries fighting with issues such as poverty, hunger and illiteracy. Religious economist, in fact, believes that aid, at present, being provided by the developed countries to developing countries is much less than that actually needed by the developing countries. (b) It is within Christian norms to make aid conditional because right utilization of aid is necessary if basic biblical norms of justice, righteousness, and stewardship have to be achieved.Developed countries should instill conditions with regard to the utilization of aid before dispensing any aid so that aid reaches to ultimate and needy beneficiaries rather than
Developed nations are considered rich and have high per capita income. They have better technology and institutions to support their economy. While the developing nations are growing nations once considered to be poor, having high growth rate. They haveThe difference between the exchange rate method of comparing incomes and the purchasing power method is that in exchange rate method the exchange rate between the two countries is used to determine the relative earnings of the people of the two countries while the purchasing power method uses the purchasing power of currency of different countries to buy the same good.