MERU UNIVERSITY OF SCIENCE AND TECHNOLOGY

P.O. Box 972-60200 – Meru-Kenya.

Tel: 020-2069349, 061-2309217. 064-30320 Cell phone: +254 712524293, +254 789151411
Fax: 064-30321
Website: www.must.ac.ke Email: info@must.ac.ke

University Examinations 2015/2016

FIRST YEAR SECOND SEMESTER EXAMINATION FOR DEGREE OF BACHELOR OF

COMMERCE

BEC 3151: CONTEMPORARY ECONOMIC ISSUES IN AFRICA

DATE: APRIL 2016 TIME 2 HOURS

INSTRUCTIONS: Answer question one and any other two questions

QUESTION ONE (30 MARKS)

(a) Despite the fact that many African countries are resource rich, they have not been able to
barriers this resources for development some schools of thought have described resources in
Africa as “curse” rather than “blessing” Discuss this assertation. (10 Marks)
(b) Despite efforts made towards regional integration, the level of intra-trade in Africa still
remains low, discuss the factors hindering intra-trade in Africa. (5 Marks)
(c) Briefly discuss the role of agriculture in the process of industrialization in developing
countries (5 Marks)
(d) Discuss the role of foreign investment, official development assistance and remittances from
the diaspora in bridging the saving-investment gap and breaking the various arcles of
poverty. (10 Marks)

QUESTION TWO (20 MARKS)

(a) Discuss the effect of population growth on inequality and quality of life. (10Marks)
(b) Discuss the common types and causes of unemployment in Africa (10 Marks)

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 QUESTION THREE (20MARKS)
(a) Discuss the role structure and performance of the Kenyan economy before, during and after
the structural adjustment programs. (10 Marks)
(b) Discuss the effect of rural-urban migration on economic growth and quality of life in
Kenya. (10 Marks)
QUESTION FOUR (20 MARKS)
a) Technology and innovation have been described as the new engines of development in
Africa. Discuss this argument in the Kenyan context. (10 Marks)
b) Traditionally migration of labour was viewed as barrier to economic growth, however
given the emerging role of remittances this view is changing. Discuss. (10 Marks)
QUESTION FIVE (20 MARKS)
(a) Kenya like many countries of the world are facing climate change related effects, in
reference to the sustainable development goals discuss policies that may be undertaken to
offset their effects. (10 Marks)
(b) Distinguish absolute and relative poverty. (5 Marks)
(c) Distinguish growth and development in economies. (5 Marks)

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