In lecture 1 we discussed the dollarization
of lifestyles in Papua New Guinea. This is the phenomenon of creating
industries that shift a proportion of the population from subsistence
lifestyles to ones dependent upon paid employment. The benefits can be earning
enough money to pay for school fees and provide for health care; the downside
can be not earning enough to compensate for not being able to grow your own
food, and the increased exposure to diseases such as AIDS. From what you have
learned through this course, what approach would you take towards ensuring the
benefits and minimizing the risks of dollarizing lifestyles? (You don’t need to
explain how you would solve any problems; the objective is to describe the
approach you would take).
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