Observation

This question was not popular among the candidates. Candidates were required to define economic growth, describe four features of a developing economy and recommend two measures that can increase the rate of development in their country. The few candidates that attempted it were able to define economic growth in the (a) part but were unable to give meaningful recommendations that can increase the rate of development in their country . Few candidates that attempted this question scored average marks. 

These candidates were expected to state the following answers to score good marks:

                (a)        Economic growth is a sustained increase in the real output or per capita income of the economy over a given period of time.
(b)        (i)         Over dependency on primary products: The prices of such primary products
fluctuate in the world market.
(ii)        Poor infrastructural facilities:  Basic infrastructure such as electricity, water etc
which are necessary for industrial development are lacking.
(iii)       Rapid population growth rate:  This increases government expenditure and thereby reduces investment and production.
(iv)       Low level of technology/low level of industrialization: Old methods are still used in agriculture and manufacturing.  These limit outputs.
(v)        Problems of unemployment:  There is a high degree of unemployment and
underemployment of factors of production.
(vi)       Balance of payments problems:  High rate of importation because of the low level of  industrialization and overdependence on primary products usually result in             deficits on balance of payments accounts.
(vii)      Low level of manpower development/low productivity of labour:  Low literacy level leads to inadequate supply of technical manpower.      
(viii)     Low per capita income/low standard of living: Low level of productivity results in   
low national income and coupled with rapid population growth leads to low per  
capita income and low standard of living.
(ix)       Under utilization of natural resources:  Many of the resources are either under  
exploited or not exploited at all and therefore grossly underutilized.
(x)        High rate of illiteracy:  Large percentage of the population cannot read and write.
(xi)       Inadequate medical care due to inadequate medical facilities.
(xii)      Political instability:  Frequent changes in governments and government policies.
(xiii)     Low savings and investment as a result of low level of production.

(c)        (i)         Diversification of the economy: Reliance on single product for exports should be
discouraged.
(ii)        Improvement in the provision of infrastructural facilities such as electricity,
transportation network.  These should be provided and improved upon.
(iii)       Reduction in the rate of population growth:  This will reduce government
expenditure, increase savings and investment.
(iv)       Adoption of appropriate and improved technology:  This may reduce  unemployment and may also increase productivity.
(v)        Initiation of policies to reduce unemployment:  This may include policies to reduce population growth and alter system of education and programmes.
(vi)       Adoption of measures to correct balance of payments problems:  These may include measures to reduce payments on imports and increase earnings on       exports.
(vii)      Effective implementation of adult literacy and universal basic education programmes:  These may work to improve qualities of the manpower.
(viii)     Provision of improved medicare:  In order to improve qualities of lives and   improve efficiency of labour.
(x)        Mobilization of savings for investment:  This can be done through the establishment of financial institutions.
(ix)       Stable political climate:  Local and foreign investors will be encouraged in peaceful and stable political climate.
(xi)       Increase in investment:  This can be done through government direct investment, joint ventures and others.
(xii)      Economic Planning:  Appropriate economic planning should be embarked upon                              and fully implemented.