Economic Development 4/4 Discussion

Saving Methods

100

What's an example of a Saving Club

ROSCA'S  or SHG's

200

True or False. The poor would save more money if they had access to a bank account?

True

300

Why don't banks like managing small accounts, like the ones the poor would have.

The high admininistrative costs of running the accounts relative to the amount in the account is not profitable.

400

What is a technological advancement , specifically in Kenya, that is helping the poor transfer money ? Or what is the US equivalent

M-PESA (Venmo)

Psychology of Saving

100

What is the main psychological barrier stopping the poor from saving money?

Lack of Self-Control

200

What is an example of a temptation good

Alcohol, Tobacco, or sweets or snacks

300

Briefly explain the Savings & Fertilizer initiative.

- Immediately after a harvest period, farmers were offered the opportunity to pay for a voucher  to buy fertilizer for the next harvest period.

- had a greater effect than reducing the price of fertilizer

- Increased the fraction of farmers who used fertilizer by 50%.

400

In the Phillipines a group of researchers designed a new kind of account that would be tied to each clients savings targets. Why did most people prefer not to take up the offer?

They were worried about committing themselves to not withdrawing until the goal was reached. (didn't like not having access to their money)

Economist Article

100

What industry is a major driver of the Dominican Republic's economy, attracting 11 million visitors in 2024?

Tourism

200

Haiti was forced to pay a massive indemnity in 1825 to which country after gaining independence?

France

300

In 2010, there was a major natural disaster that killed nearly 200,000 people. Which country did this affect, and what was the natural disaster?

Haiti, Earthquake

400

Name one major reason why the Dominican Republic's economy grew while Haiti's stagnated?

 -Better governance

 -infrastructure investment

 -market friendly policies.