1. Is it in the interest of high-income countries to promote the development of poor countries? Why?

2. What are the reasons for the poor economic performance of most countries in sub-Saharan Africa?

3. The maquiladoras are the (mainly foreign-owned) factories located in Mexico on the border with the United States. Why do you think the maquiladora sector has expanded in the last 10 years? Do you think the maquiladoras are a positive factor in Mexican economic development?

4. Should governments seeking to develop domestic industry protect such industries with tariffs and regulations, or should they subject them to foreign competition?

5. There is currently a worldwide campaign to reduce the foreign debt of the least-developed countries. Discuss the economic benefits of debt relief for these countries.

6. In his well-known hypothesis about income distribution and economic development, economist Simon Kuznets argued in the 1950s that developing countries must first suffer an increase in inequality as they grow. Only as economic development proceeds, Kuznets argued, will inequality begin to decline. What do you think is the logic behind Kuznets's theory? Recent research shows that the Kuznets relation no longer holds. Why do you think this is?

7. Why is U.S. aid to developing countries so low (as a percentage of GDP) compared to most other industrialized countries?