Institutions & Governance
What does “rule of law” mean, and why is it essential for development?
Laws apply equally to all, creating stability and protecting rights.
What defines a free and competitive market?
Buyers and sellers operate freely with minimal government interference.)
What is human capital?
The skills, knowledge, and health people bring to the economy.
Why are individual freedoms crucial in democratic societies?
They allow citizens to express opinions, innovate, and hold leaders accountable.
What is sustainable development?
Growth that meets current needs without harming future generations.
Why do democratic governments tend to support long-term economic growth?
They are more accountable and stable, attracting investment and ensuring fair policies.
How do property rights and patents encourage innovation?
They protect ownership of ideas and assets, rewarding investment and creativity
Why is education considered a driver of development?
It improves productivity, innovation, and civic engagement.
How does gender equality improve a country’s economy?
It increases labor force participation and leads to better outcomes for families.
How does rapid population growth challenge development efforts?
It strains resources, services, and infrastructure.
According to James Robinson, what two things must a successful state balance?
A: Power (order) and inclusion (freedom).
What happens in economies without competition?
Monopolies form, prices rise, and innovation slows.
How does infrastructure impact economic development?
It reduces costs, improves access, and enables trade and communication.
What happens when women have equal access to education and healthcare?
Societies become healthier, more productive, and more stable.
What are some benefits of family planning and population control?
Healthier families, better education, and slower resource depletion.
How do stable governments encourage business and entrepreneurship?
By reducing risks, enforcing contracts, and ensuring a predictable environment.
How do inclusive economic institutions promote growth?
They provide equal access to opportunities, markets, and resources.
Give two examples of how poor infrastructure can slow a country’s growth.
Poor roads hinder trade; weak internet limits business or education access.
What’s the difference between political and economic rights?
Political rights relate to government participation; economic rights involve access to resources and opportunities.
Why must countries address environmental issues to ensure long-term growth?
Degraded environments hurt health, agriculture, and economies.
What role do inclusive political institutions play in sustainable development?
They allow participation, protect rights, and prevent power concentration.
What’s the link between economic freedom and national wealth?
Countries with more economic freedom generally experience faster growth and higher income levels.
What’s the long-term effect of investing in education and infrastructure?
Stronger economies, better jobs, and increased global competitiveness.
How does inequality undermine development?
It limits opportunity, creates instability, and wastes human potential.
How can investing in clean energy help both the economy and the environment?
It creates jobs, reduces pollution, and fosters sustainable growth.