Evaluate government-led strategies

Evaluate government-led strategies, apart from the development of primary product industries, to promote economic development in countries such as Ethiopia.

Examiners Report: "This was generally a poorly scoring question as many candidates failed to appreciate the difference between 'government-led' and 'market orientated' development strategies. Although candidates obviously had a good level of knowledge of strategies to promote development in general, many spent most of their response evaluating market orientated strategies (e.g. promotion of FDI, trade liberalisation, privatisation), which few marks could be awarded for. Candidates made limited use of AD/AS analysis in their responses, which was disappointing, as often their points did lend themselves to this, and it would have allowed them to extend their analysis in a fruitful direction. Similarly, application to context was done much less, and much less well, in response to this question than to the three earlier parts. Some valid answers were included in the extract (e.g. the Nile dam infrastructure project, the GTP), and so students must remember to use the data given in their responses to all parts of the question."

So make sure you can identify if the question is asking for government led or market led strategies.

Ensure you use the data and keep it simple initially - Nile Dam infrastructure project will improve transportation helping businesses and labour. The project itself will have positive multiplier effects. Shifting AS and AD outwards helping industrialise and lift Real GDP per capita at PPP.

Government led strategy - nationalise, direct provision, government spending, protectionism, regulation.
Market led strategy - privatize, de-regulate, free trade, open up capital flows, FDI.