Lesson Plan

• Describe the difference between saving and investment in macro‑economics.
• Explain how saving and investment rates affect economic growth using the Solow model.
• Analyse the factors that cause variation in saving and investment across countries.
• Evaluate policy measures that can improve the mobilisation of savings into productive investment.

• Projector and screen
• PowerPoint slides with key concepts and country data
• Handout containing the comparative country table
• Whiteboard and markers
• Calculator or spreadsheet for quick calculations

Begin with a quick poll: “What do you think is more important for a country's development – saving or investment?” Discuss students’ prior knowledge of saving versus consumption, then outline the success criteria: differentiate saving and investment, link rates to growth, and assess policy impacts.

1. Do‑now (5’): Write definitions of saving and investment; share and clarify.
2. Mini‑lecture (10’): Present key concepts, saving/investment rates and the Solow equation using slides.
3. Group analysis (15’): Teams examine the country comparison table, identify patterns, and answer guided questions.
4. Class discussion (10’): Groups report findings; teacher highlights roles of financial systems, policies, and stability.
5. Policy brainstorming (10’): Whole class generates ideas to improve the saving‑investment link; record on board.
6. Exit ticket (5’): Write one real‑world example of how saving influences investment in a country.

Recap that higher saving supplies the funds for investment, which drives growth, but the effectiveness depends on institutions and policies. For the exit ticket, students note a key takeaway and any lingering question. Homework: read a short article on FDI’s impact on investment and prepare a brief summary.