Growth and Development Strategies
Economic Growth and/or Economic Development Strategies
Syllabus requirement
Includes trade strategies (import substitution, export promotion), economic integration, diversification, social enterprise, market-based and interventionist policies, and merit good provision.
Summary
This topic explains merit goods as goods and services whose consumption or production creates positive externalities, meaning social benefits exceed private benefits. Because private markets tend to under-provide and under-consume these goods, governments often use policy tools (such as public provision, subsidies, or regulation) to increase access and support economic development. Understanding merit goods helps explain why public spending on education, healthcare and infrastructure can raise long-term growth and development outcomes.
