1. Explain how low levels of living can turn into a vicious cycle in developing countries.

Suggest a government policy that can improve this situation.

Explain your opinion about the main possible issues that government will face implementing this policy and the best solution for them.

1. If countries are first ranked by level of real GDP per capita, and then by the value of the Human Development Index, would you expect the ranking of countries to be similar or different? Explain.