ASIS, MARY JOY S.

ECON2 ASSESSMENT TASK 6

1. If you are one of the honorable members of the lower house or House of the Congress,

give five (5) economic development policies derived from the Todaro Migration Theory.

Explain each comprehensively.

If I am one of the honorable members of the lower house or House of Congress, I will give five economic
development policies derived from the Todaro Migration Theory such as:

 Reduce urban bias specifically large city bias of development strategies- it is when there are
more jobs in urban than rural and will lead to more rural-urban migration.
 Attempt to increase rural income simultaneously and make rural areas attractive- making an
increase in rural income and improving rural areas into more attractive, pleasant and useful
ways.
 Indiscriminate education expansion can also lead to further migration and employment (all
educated in rural areas come to the urban cities to look for jobs-modify the linkage between
education and employment.
 Wage subsidies and scarcity factor pricing can be counterproductive- Elimination of distortions.
 Programs of integrated rural development- reduce population growth and decentralize
authority to cities and neighborhoods.

2. In your own words, illustrate “Urban Giantism Problem,” by citing its cause and effect to the
economic development effort of a nation. How can UGP be counteracted upon?

Urban Giantism Problem is a problem in which there may be a first-city bias because these larger cities
call for more capital incentives.

Its causes to the economic development effort of a nation are: Bread and Circuses, Centralized
transportation system, Import Substitution Industrialization.

Centralized transportation system: because larger cities are where transportation systems are, there are
higher transportation costs for smaller cities and there are less incentives to work in smaller cities

Import Substitution Industrialization,: Less trade, incentive to concentrate on bigger, already established
cities to avoid transportation costs

Breads & Circuses: Dictators like to control power and to prevent unrest (evidence: stable democracies
vs unstable dictatorships.

Its effects to the economic development effort of a nation are: Generates surplus despite hostile
environment
-Informally trains less/unskilled workers and gives access to apprenticeships

-Brings more employment to low capital intensive areas

-Uses appropriate technologies and local resources

-Recycles waste material

-More benefits to poor, especially women who are concentrated in the informal sector

UGP can be counteracted upon if:

 The government made an action to prevent problem such Urban Giantism Problem.

 There is fairness between cities and provinces.

 There is a prevention about the first-city biased.