| Economics News Articles: September 2005 |
| Welcome to those of you who are new
to economics and to this monthly set of news articles, and welcome back
to those who have used this site before.
As you will see from the contents, there are many economics topics covered in these articles, which are drawn from several different UK and non-UK newspapers, journals and magazines. The topics range across the chapters of the four textbooks, Economics (5th ed), Essentials of Economics (3rd ed), Economics for Business (3rd ed) and The Economic Environment of Business (1st ed) and I have ordered them so that they correspond approximately to the order of the chapters. I have tried to ensure that the links to the articles stay live over several months, or even permanently. This means that I have not been able to use some sources, such as the Financial Times and the Independent, as their free articles go into a subscription-only archive after a few days. However, to keep up to date with what is going on on a regular basis, these are still excellent sites to keep an eye on. As I have mentioned in previous sets of articles, if you're searching for economics news beyond the articles on this site, I would recommend the following two sites: The Guardian World News GuideIn the meantime, I hope you find the articles below useful for your studies and that they help you to see how relevant economics is to what is going on in the world. Tutors might like to use the linked articles as the basis for tutorial/seminar work or to use them as the basis for a problem-based approach to student learning. |
|
Andy Beharrell
|
| Contents |
1. Reforming the welfare state - how much government do we need?
2. The rain in Spain is not even falling on the plains
3. The relentless rise of the oil price
4. Looking for luxury in India - the Indian car market
5. The global housing boom - set to burst?
6. More trainers but less choice?
7. Corporate 'knee-capping'
8. More cream for the 'fat cats'?
9. The changing face of poverty
10. City traders face up to climate change
11. Airport expansion - good or bad for the economy?
12. E-Bay - making us all wealthier?
13. US interest rates in the ascendancy
14. The Chancellor's budget woes
15. Can Britain point the way for German reform?
16. Bra Wars
17. In defence of the CAP
18. Increasing oil prices fail to oil the wheels of the US
19. Revaluing the Chinese Yuan
20. The Big Mac Index
21. The G8 - what did they achieve?
| Relevant to: |
| Economics (5th edition) Chapters 1, 3 |
| Essentials of Economics (3rd edition) Chapter 1 |
| Economics for Business (3rd edition) Chapter 2 |
| The Economic Environment of Business (1st edition) Chapter 1 |
| The fundamental economic problem is one of scarcity and as a result countries have to work out how to allocate resources. The methods that they use will tend to differ, but one of the main choices to be made is the extent to which the government should intervene in the economy. For example, should healthcare be provided by the government or by the private sector? How extensive should the welfare state be? The articles below consider possible reform to the welfare state and the history of the welfare state in the UK. |
The future of welfare reform BBC News Online (11/8/05)
Poverty mapped BBC News Online (A timeline of the welfare state)
| Questions | |
| 1. | Assess the arguments for reducing the level of government intervention in an economy? |
| 2. | Discuss how overall efficiency in the economy is likely to change with increased levels of government intervention. |
| 3. | What economic problems might arise if welfare provision in the UK is reduced? |
| Relevant to: |
| Economics (5th edition) Chapter 2 |
| Essentials of Economics (3rd edition) Chapters 1, 2 |
| Economics for Business (3rd edition) Chapters 4, 5 |
| The Economic Environment of Business (1st edition) Chapter 2 |
| Spain and Portugal have suffered this year from one of the worst droughts on record. Water has been rationed, swimming pools have been closed and there have been significant problems with forest fires in Portugal. But what economic problems is this water shortage likely to cause? Read the article from BBC News Online linked to below and consider answers to the questions below. |
Iberian misery as drought bites BBC News Online (13/6/05)
| Questions | |
| 1. | What is likely to be the impact of the drought in Spain and Portugal on economic growth? |
| 2. | Using supply and demand analysis, show the impact of the drought on food prices in Spain. |
| 3. | Discuss the likely impact of the drought on the tourist industry in Spain and Portugal. |
| Relevant to: |
| Economics (5th edition) Chapter 2 |
| Essentials of Economics (3rd edition) Chapters 1, 2 |
| Economics for Business (3rd edition) Chapters 4, 5 |
| The Economic Environment of Business (1st edition) Chapter 2 |
| Oil prices have rarely been out of the headlines during the summer with every new record oil price level being greeted with new superlatives. Fuel prices have risen correspondingly and fuel protests took place, though with little consequence apart from a large traffic jam on the M4 as a result of a 'drive-slow' by some protestors. Hurricanes Katrina and Rita led to the closure of a number of refineries and exposed how sensitive the supply chain for fuel is to exogenous shocks. So why has the oil price risen and what impact is this likely to have on the world economy? The articles linked to below consider some of the issues relating to the rise in the oil price. |
Oil tops $67 as US demand soars BBC News Online (12/8/05)
'Peak oil' enters mainstream debate BBC News Online (10/6/05)
I don't drive a car; why should I care about oil prices? BBC News Online (10/8/05)
Economy feels pressure from costly oil BBC News Online (9/8/05)
Oil costs drives up price of raw materials Guardian (8/8/05)
Oil price quota: whither OPEC? The Tide (Nigeria) (20/8/05)
Oil price hike to hurt developing countries Business Standard (India) (20/8/05)
| Questions | |
| 1. | What are the main factors that have led to the rapid increase in the oil price? |
| 2. | Using supply and demand analysis, show the impact of Hurricanes Katrina and Rita on the oil market. |
| 3. | Assess the impact that higher oil prices are likely to have on (a) the developed world and (b) the developing world. |
| Relevant to: |
| Economics (5th edition) Chapter 2 |
| Essentials of Economics (3rd edition) Chapters 1, 2 |
| Economics for Business (3rd edition) Chapters 4, 5, 6 |
| The Economic Environment of Business (1st edition) Chapter 2, 3 |
| The luxury car market is the fastest growing segment of the overall car market in India. While the demand for cars is increasing at around 17% a year, the demand for luxury cars is increasing at 28% a year. Over 1 million cars were sold last year and as a result the market is being targeted by a number of major car producers. So what are the main factors driving demand in India? The article below from BBC News Online looks at the changes taking place in the Indian car market. |
India's car market is revving up BBC News Online (19/7/04)
| Questions | |
| 1. | Identify the principal determinants of demand for luxury cars in India. |
| 2. | Compare and contrast the likely value of the price elasticity of demand for the Maruti 800 and the Mercedes. Justify your answer. |
| 3. | Examine how the factors determining demand are likely to differ between the small car market and the luxury market. |
| Relevant to: |
| Economics (5th edition) Chapter 2 |
| Essentials of Economics (3rd edition) Chapters 1, 2 |
| Economics for Business (3rd edition) Chapters 4, 5 |
| The Economic Environment of Business (1st edition) Chapter 2 |
|
For a number of years, The Economist has prepared an index of global house prices and they have been rising faster than ever. As the introduction in the article states: "NEVER before have real house prices risen so fast, for so long, in so many countries. Property markets have been frothing from America, Britain and Australia to France, Spain and China. Rising property prices helped to prop up the world economy after the stockmarket bubble burst in 2000. What if the housing boom now turns to bust?" |
In come the waves The Economist (16/6/05)
| Questions | |
| 1. | What are the main factors that have led to the increase in global house prices identified in the article?. |
| 2. | Why do you think that the housing markets in the UK and Australia have slowed down? |
| 3. | Assess the impact that higher house prices are likely to have on the world economy. |
| Relevant to: |
| Economics (5th edition) Chapters 6, 7 |
| Essentials of Economics (3rd edition) Chapter 4 |
| Economics for Business (3rd edition) Chapters 11, 21 |
| The Economic Environment of Business (1st edition) Chapters 5, 8 |
| During August Adidas agreed a takeover with their rival Reebok. The deal still needs to be confirmed by shareholders and competition authorities, but is likely to go ahead by early 2006. The new combined company will have worldwide athletic footwear sales of 9bn euro and should help it challenge Nike, particularly in the lucrative North American market. |
Adidas agrees to buy rival Reebok BBC News Online (3/8/05)
Adidas to pay 3bn euro for rival Reebok Guardian (4/8/05)
The race is on to catch Nike Scotsman (4/8/05)
Adidas bid raises image concerns BBC News Online (3/8/05)
| Questions | |
| 1. | How has the market structure in the athletic footwear market changes as a result of the takeover of Reebok by Adidas? |
| 2. | Assess the impact that this takeover is likely to have on the equilibrium level of price and output in the athletic footwear market. |
| 3. | Evaluate whether European competition authorities should allow this takeover to go ahead. |
| Relevant to: |
| Economics (5th edition) Chapters 6, 11 |
| Essentials of Economics (2nd edition), Chapters 4, 6 |
| Economics for Business (2nd edition), Chapters 11, 21 |
| The Economic Environment of Business (1st edition) Chapter 8 |
| The two major chip makers in the world (chips of the silicon variety!) are AMD and Intel. AMD has taken out a lawsuit against Intel claiming that they used their market power and high pressure tactics to force a range of computer companies into signing exclusive deals. They argue that this is an abuse of their market power and have termed the practice corporate 'knee-capping'. The lawsuit even compared Intel to a cocaine dealer that gets companies hooked on its financial incentives. |
Rival sues Intel over corporate 'knee-capping' Guardian (29/6/05)
| Questions | |
| 1. | Identify from the article the abuses of monopoly power that AMD alleges against Intel. |
| 2. | Using diagrams as relevant, show the likely impact on the price and sales of chips of the monopoly position of Intel. |
| 3. | Assess the policies available to governments to reduce any abuses of monopoly power. |
| Relevant to: |
| Economics (5th edition) Chapter 9 |
| Essentials of Economics (3rd edition) Chapter 5 |
| Economics for Business (3rd edition) Chapter 18 |
| The Economic Environment of Business (1st edition) Chapter 7 |
| Directors have often been accused of being 'Fat Cats' and with their pay rising at 16.1% per annum, this charge has resurfaced. The latest increase has taken the average level of pay including bonuses and incentives to more than £2.5m per annum. Directors' pay has for many years risen significantly faster than average earnings and, as a result of these differences, the average Chief Executive is now paid 113 times more than the average British worker, who earns £22,060. |
Chief executives pay rises to £2.5m average Guardian (4/8/05)
Special report: executive pay Guardian
£650m and still plenty in store Guardian (4/8/05)
| Questions | |
| 1. | What are the main factors that have led to Directors' pay rising significantly faster than average earnings? |
| 2. | Identify the main determinants of supply and demand for Chief Executives of major public companies. |
| 3. | What value would you expect for the elasticity of supply of labour for (a) Chief Executives and (b) workers in the catering and hospitality industry? Explain why these values differ. |
| Relevant to: |
| Economics (5th edition) Chapter 10 |
| Essentials of Economics (3rd edition) Chapter 5 |
| Economics for Business (3rd edition) Chapter 11 |
| Poverty is an easily forgotten topic in these more prosperous times, but it is still very much in existence. It may differ from the absolute poverty that is present in many developing countries, but it is still present. This year has marked the 60th anniversary of the welfare state in the UK and to mark the anniversary the BBC has run an In-Depth special with a number of articles relating to poverty and the welfare state. |
The changing face of poverty BBC News Online (27/6/05)
Quiz: The British welfare state BBC News Online (18/7/05)
Poverty mapped BBC News Online (Poverty timeline)
In depth: Breadline Britain BBC News Online
| Questions | |
| 1. | What is the difference between relative and absolute poverty? |
| 2. | What were the main policy changes brought in with the introduction of the welfare state? |
| 3. | Assess the extent to which poverty has changed over the 60 years since the introduction of the welfare state. |
| 4. | Evaluate the most effective policies for the reduction of relative poverty in the UK. |
| Relevant to: |
| Economics (5th edition) Chapter 12 |
| Essentials of Economics (3rd edition) Chapter 6 |
| Economics for Business (3rd edition) Chapters 20, 22 |
| The Economic Environment of Business (1st edition) Chapter 8 |
| The European Emissions Trading Scheme (ETS) sets limits for carbon emissions that companies have to meet. If they emit less than their allowances then they are allowed to sell the spare permits. This carbon trading scheme gives companies a market-based incentive to reduce their emissions and therefore the level of pollution. Companies that emit excess emissions will need to buy further permits and will therefore have increased costs, whereas those who use less than their allowance will effectively be subsidised. When the EU scheme was launched in January the price per tonne shot up from 6 euro to nearly 30 euro in June, though it has now stabilised more at just over 20 euro. |
City traders facing up to climate change BBC News Online (15/8/05)
| Questions | |
| 1. | Define (a) external cost and (b) marginal social cost.. |
| 2. | Using diagrams as appropriate, show how emissions of CO2 lead to a misallocation of resources. |
| 3. | Explain how the European Trading Scheme (ETS) helps to reduce external costs. |
| 4. | Explain what Nick Robins meant by "It is probable that some corporations will have made investments without taking into account the likely tightening of limits under the Emissions Trading Scheme (ETS)." |
| Relevant to: |
| Economics (5th edition) Chapters 12, 24 |
| Essentials of Economics (3rd edition) Chapters 6, 12 |
| Economics for Business (3rd edition) Chapters 20, 22 |
| The Economic Environment of Business (1st edition) Chapters 8, 11 |
| It has always been assumed that airport expansion is bad for the environment but good for the economy. However, a new report from Friends of the Earth suggests that the expansion of airport capacity is also damaging for the economy. The report argues that more airport capacity will lead to more people flying out of the UK than flying in and therefore a net outflow of currency. |
Airport expansion 'harms economy' BBC News Online (4/8/05)
Friend of the Earth transport campaign: Heathrow Friends of the Earth
Q&A: Airport expansion BBC News Online (18/2/05)
| Questions | |
| 1. | Explain the market failures that arise from increased airport expansion. |
| 2. | Explain in details the likely impact on the UK balance of payments of increased airport expansion if the Friends of the Earth report is correct. |
| 3. | Assess the regional impact on the UK of expansion of airport capacity. |
| Relevant to: |
| Economics (5th edition) Chapter 13 |
| Essentials of Economics (3rd edition) Chapters 7, 8 |
| Economics for Business (3rd edition) Chapters 26, 29 |
| The Economic Environment of Business (1st edition) Chapter 9 |
| More than £4bn worth of trading, 1.3% of UK retail sales, is likely to take place on E-Bay this year according to the Centre for Economic and Business Research (CEBR). This has had the effect of increasing the value of items people hold in their home as they are increasingly able to realise them, but it has also had a 'wealth effect' and as a result increased consumer confidence. |
Boost to economy hidden in the cupboard Guardian (15/8/05)
'EBay-nomics' boosts British households Times Online (15/8/05)
Auction sites 'boost typical household by £3000' The Scotsman (15/8/05)
Internet auctions boost UK wealth BBC News Online (15/8/05)
| Questions | |
| 1. | What is meant by a 'wealth effect'? |
| 2. | Assess the impact that auction sites like E-Bay have had on consumer confidence and the level of consumer spending. |
| 3. | Why does trading on E-Bay and other auction sites not appear in the national income accounts? |
| Relevant to: |
| Economics (5th edition) Chapters 18, 20 |
| Essentials of Economics (3rd edition) Chapter 9 |
| Economics for Business (3rd edition) Chapter 28 |
| The Economic Environment of Business (1st edition) Chapter 10 |
| The Federal Reserve in the USA is responsible for setting interest rates but economic indicators in recent months have made their job very difficult. On the one hand inflation has been creeping up demanding increased interest rates, but on the other hand there has been a threatened slowdown in growth demanding reduced interest rates. However, growth seems to have stayed fairly resilient in the last couple of months and concerns about high fuel and energy prices stoking inflation have led to an increase in rates for nine months in a row. |
US Fed increases rates to 3.25% BBC News Online (30/6/05)
An interesting juggling act BBC News Online (3/5/05)
Fed worries grow on US inflation BBC News Online (12/4/05)
| Questions | |
| 1. | Explain the monetary transmission mechanism whereby an increase in interest rates will reduce aggregate demand. |
| 2. | What are the main inflationary pressures that the Federal Reserve is concerned about? |
| 3. | The Monetary Policy Committee of the Bank of England is responsible for determining interest rates in the UK. How much do you know about how they determine interest rates? Have a go at the Biz/ed quiz on inflation and interest rates. How did you get on? |
| Relevant to: |
| Economics (5th edition) Chapter 20 |
| Essentials of Economics (3rd edition) Chapter 8 |
| Economics for Business (3rd edition) Chapter 30 |
| The Economic Environment of Business (1st edition) Chapter 10 |
| Through most of his Chancellorship, Gordon Brown has kept a tight rein on fiscal policy and been able to meet his self-imposed 'golden rule'. This year, however, he has had increasingly difficulty in meeting this rule. He has agreed to significant increases in government expenditure, but the slowing economy has led to a reduction in tax revenues. This has pushed up the level of government borrowing and he is therefore in danger of breaking the golden rule. |
Budget woes deepen for Chancellor BBC News Online (20/7/05)
| Questions | |
| 1. | What is meant by the 'golden rule'? Why did Gordon Brown introduce this? |
| 2. | Explain the 'creative accounting' that the Treasury has used to avoid the golden rule being broken in recent months. |
| 3. | Assess the options that Gordon Brown has available to him to reduce public borrowing. Consider the advantages and disadvantages of each of these policy options. |
| Relevant to: |
| Economics (5th edition) Chapter 22, 21, 14 |
| Essentials of Economics (3rd edition) Chapters 7, 8, 10 |
| Economics for Business (3rd edition) Chapters 29, 31 |
| The Economic Environment of Business (1st edition) Chapters 9, 10 |
| Axel Weber is the President of the German Bundesbank and in the interview linked to below with the Guardian, he argues that the reforms that Britain has undergone in recent decades may help point the way for the German economy. |
British reforms point the way for us Guardian (10/9/05)
| Questions | |
| 1. | Assess the policy options available to Germany to create "flexible and dynamic labour markets". |
| 2. | What have been the main factors contributing to an improvement in German economic growth and competitiveness in recent months? |
| 3. | Explain the main reasons, identified by Axel Weber, for the poor economic growth record of Germany in the last decade. |
| Relevant to: |
| Economics (5th edition) Chapter 23 |
| Essentials of Economics (3rd edition) Chapters 11, 12 |
| Economics for Business (3rd edition) Chapter 24 |
| The Economic Environment of Business (1st edition) Chapter 11 |
| The ending of the Multi-Fibre Agreement earlier this year was expected to lead to a rise in imports of Chinese clothes and textiles, but concerns over the extent of that rise led the EU to introduce temporary quotas on Chinese imports. The EU was worried that the sharp rise in imports would damage European clothing producers. However, they significantly underestimated the scale of the rise in imports and in August millions of clothes were held up and not being allowed into Europe as the quotas had already been exceeded for the whole of 2005 on many categories of clothing. This led to retailers threatening shortages of clothing. The dispute became known as the 'bra wars' trade dispute and many poor taste headlines including 'Storm in a D-cup'. |
Peace breaks out in 'bra wars' The Scotsman (5/9/05)
Q&A: Chinese clothes exports to EU BBC News Online (5/9/05)
EU approves Chinese textile deal BBC News Online (7/9/05)
Closed shop or open market BBC News Online (11/9/05)
EU and China in 'bra wars' deal Guardian (6/9/05)
Deal reached following 'bra wars' peace talks The Scotsman (5/9/05)
| Questions | |
| 1. | Explain the main factors that led to the 'bra wars' dispute arising. |
| 2. | Summarise the deal reached between the EU and the Chinese authorities to solve the 'bra wars' dispute. |
| 3. | Discuss the costs and benefits for (a) UK consumers and (b) UK clothing firms of completely free trade in textiles and clothing. |
| Relevant to: |
| Economics (5th edition) Chapters 3, 23 |
| Essentials of Economics (3rd edition) Chapters 2, 12 |
| Economics for Business (3rd edition) Chapter 25 |
| The Economic Environment of Business (1st edition) Chapter 11 |
| The EU has agreed reforms to the Common Agricultural Policy (CAP), though many campaigners argue that these reforms do not go nearly far enough. Many campaigners argue for the complete withdrawal of subsidies for farmers, but in the article below from the Guardian Alec Gordon mounts a robust defence of support for farmers. |
We can't have the fields and hedgerows we want without supporting farmers Guardian (27/6/05)
| Questions | |
| 1. | Using diagrams as appropriate, explain how the CAP supports farmers. Show the impact of the scheme on equilibrium price and output in the relevant markets. |
| 2. | Using diagrams as appropriate, show the impact of agricultural support on the level of efficiency of a market. |
| 3. | Discuss the arguments for and against the provision of agricultural support by the UK government. |
| Relevant to: |
| Economics (5th edition), Chapters 15, 24 |
| Essentials of Economics (3rd edition) Chapter 12 |
| Economics for Business (3rd edition) Chapter 27 |
| The Economic Environment of Business (1st edition) Chapter 11 |
| The rapid rise in oil prices during 2005 has also led to a rapid growth in the US trade gap. The US trade gap was already at record levels, but the higher cost of oil imports has widened the gap by a further 6.1% in June. |
US trade gap widens as oil soars BBC News Online (12/8/05)
| Questions | |
| 1. | Explain the layout of the balance of payments accounts. |
| 2. | Which section of the balance of payments accounts will be most affected by the rise in oil prices? Why is this the case? |
| 3. | What policy options are available to the US government to narrow the trade gap? Assess the likely effectiveness of each policy. |
| Relevant to: |
| Economics (5th edition) Chapters 15, 24 |
| Essentials of Economics (3rd edition) Chapter 12 |
| Economics for Business (3rd edition) Chapter 27 |
| The Economic Environment of Business (1st edition) Chapter 11 |
| China has revalued its currency, the yuan, for the first time in a decade. Up to now the value of the yuan has been pegged to the dollar - something which the Americans have argued has led to the yuan being undervalued for some time. The Chinese authorities have chosen to float the currency against a basket of currencies, though this basket was not revealed for some weeks after the announcement of the revaluation. |
Yuan moves show a confident China Asia Times (26/7/05)
Bejing currency gesture fails to defuse threat of US protectionism New Zealand Herald (25/7/05)
Q&A: China revalues its currency BBC News Online (21/7/05)
China discloses linked currencies Times Online (11/8/05)
China lifts lid on currency basket International Herald Tribune (11/8/05)
| Questions | |
| 1. | Why have the Americans been lobbying for the Chinese to float their currency? |
| 2. | Explain how the value of the yuan is now determined. |
| 3. | Discuss the costs and benefits for the Chinese of fully floating their currency. |
| 4. | Assess the likely impact of the revaluation of the yuan on the competitiveness of the Chinese economy. |
| Relevant to: |
| Economics (5th edition) Chapter 24 |
| Essentials of Economics (3rd edition) Chapter 12 |
| Economics for Business (3rd edition) Chapter 27 |
| The Economic Environment of Business (1st edition) Chapter 11 |
| For many years, The Economist has published an indicator called the "Big Mac Index". Initially this was intended as a lighthearted guide to prices in a range of countries, but it has become a well-established way of measuring purchasing power parity (PPP) and is now published twice a year by The Economist. The Big Mac is such a widely available and internationally consistent product that it can be used as a way to measure purchasing-power-parity exchange rates. Though statistically this may not be the best measure (and is not therefore used by statisticians), it is a useful guide to see how well actual exchange rates reflect purchasing power. The article below from The Economist looks at the results from the 2005 Big Mac index. |
Fast food and strong currencies The Economist (9/6/05)
| Questions | |
| 1. | Why is it important to use purchasing power parity exchange rates when converting economic data to compare countries? |
| 2. | What problems may be inherent in using a single product (the Big Mac) to measure purchasing power parity? |
| 3. | Which country has the best value Big Macs? |
| 4. | Why do exchange rates differ from their long-run purchasing-power-parity values? |
| Relevant to: |
| Economics (5th edition), Chapters 25, 26 |
| Essentials of Economics (3rd edition) Chapter 12 |
| Economics for Business (3rd edition) Chapter 32 |
| The Economic Environment of Business (1st edition) Chapter 12 |
| In July this year, the G8 group of nations met at Gleneagles. Many people consider the summit to have been a great success and musician turned Africa campaigner, Bob Geldof, pronounced the summit an unprecedented success. Others argue that the outcomes were much more limited and that the world's rich nations have not gone nearly far enough in helping the developing world. The articles below look at a range of opinions from both before and after the G8 summit. |
Africa's economy BBC News Online
Can the G8 be considered a success? BBC News Online (8/7/05)
The G8 deal: what they said BBC News Online (8/7/05)
Profile: G8 BBC News Online (27/5/05)
Trade 'vital' to African progress BBC News Online (4/7/05)
Africa tells west: scrap trade barriers Guardian (6/7/05)
Rich spend 25 times more on defence than aid Guardian (6/7/05)
| Questions | |
| 1. | Summarise the main areas of agreement reached at the G8 summit in Gleneagles. |
| 2. | Consider the summit from the perspective of a developing country in Africa. What else would you have argued for the G8 to do and why? |
| 3. | Evaluate whether the G8 summit was a success in the context of improving the lot of the developing world. |
| 4. | Assess the likely impact of the debt-cancellation deal agreed at Gleneagles for the developing world. |