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2 (a) Explain what is meant by the Lewis model - Edexcel - A-Level Economics A - Question 2 - 2022 - Paper 3
Question 2
2 (a) Explain what is meant by the Lewis model. Refer to Extract D in your answer. The Lewis model of economic development, also known as the dual-sector model, emp... show full transcript
Worked Solution & Example Answer:2 (a) Explain what is meant by the Lewis model - Edexcel - A-Level Economics A - Question 2 - 2022 - Paper 3
Step 1
Explain what is meant by the Lewis model. Refer to Extract D in your answer.
Answer
The Lewis model of economic development, also known as the dual-sector model, emphasizes the transition from a traditional agricultural economy to a modern industrial economy. It posits that an economy consists of two sectors: the subsistence (agricultural) sector and the capitalist (industrial) sector. Initially, labor is abundant in the agricultural sector, leading to a low standard of living. As the economy develops, labor moves from agriculture to industry, increasing productivity and incomes.
The Lewis model highlights the importance of surplus labor in the agricultural sector, which can be redistributed to the industrial sector without reducing agricultural output. The model suggests that this transition can accelerate growth and development through improved productivity, ultimately leading to a higher standard of living for the population.
Extract D suggests that Africa has the potential to capitalize on its industrial growth, particularly with a focus on sectors that do not require extensive manufacturing, presenting a unique opportunity for development.
Step 2
Examine two demographic factors influencing development in Kenya.
Answer
Demographic factors play a significant role in shaping Kenya's development trajectory. Firstly, the decline in birth rates is notable. Falling birth rates have significant implications for the economy as a smaller youth population may reduce the dependency ratio, allowing for more investment in human capital and infrastructure. This demographic shift could lead to increased economic productivity, as seen in various developmental models.
Secondly, urbanization influences development. As of the latest statistics, a significant proportion of Kenya's population is shifting towards urban areas. Urbanization can lead to improved access to jobs, education, and healthcare services. However, rapid urbanization also poses challenges, such as inadequate infrastructure and housing shortages, necessitating proactive measures for sustainable urban development.
Step 3
Using the example of cut flowers (Extract F), discuss how the concept of absolute advantage may lead to growth in Kenya.
Answer
Absolute advantage refers to the ability of a country to produce a good or service more efficiently than another country. In the case of Kenya, the flower industry benefits from the country’s unique climate and conditions, allowing for year-round production of flowers. This natural advantage positions Kenya favorably in the international market, enabling it to supply cut flowers more effectively compared to many other countries.
The growth of the cut flower industry provides employment opportunities and contributes to the national GDP. By leveraging its absolute advantage in this sector, Kenya can enhance its economic stability. Furthermore, this industry includes significant export opportunities, generating foreign exchange and increasing competitiveness in the global market.