1. Why might the problem of rapid urbanization be a more significant population policy issue than curtailing population growth rates over the next two decades for most developing countries? Explain your answer.
2. Describe briefly the essential assumptions and major features of the Todaro model of rural-urban migration. One of the most significant implications of this model is the paradoxical conclusion that government policies designed to create more urban employment may in fact lead to more urban unemployment. Explain the reasons for such a paradoxical result.
3. "The key to solving the serious problem of excessive rural-urban migration and rising urban unemployment and underemployment in developing countries is to restore a proper balance between urban and rural economic and social opportunities." Discuss the reasoning behind this statement, and give a few specific examples of government policies that would promote a better balance between urban and rural economic and social opportunities.
4. For many years, the conventional wisdom of development economics assumed an inherent conflict between the objectives of maximizing output growth and promoting rapid industrial employment growth. Might these two objectives be mutually supportive rather than conflicting? Explain your answer.
5. What is meant by the expression "getting prices right"? Under what conditions will eliminating factor price distortions generate substantial new employment opportunities? (Be sure to define factor price distortions.)
6. The informal sector is becoming an ever-larger part of the urban economy. Distinguish between the urban formal and informal sectors, and discuss both the positive and the negative aspects of the informal urban labor market.
7. Why are primate cities-generally the capital-often disproportionately large in many developing countries? Which factors can be addressed with better policies?
8. What is an industrial district? How might governments of developing countries help them succeed?