Economics
Economic Development
Economic development refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area. It involves improving various aspects of the economy, such as infrastructure, education, healthcare, and technology, to create a more prosperous and equitable society.
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11 Key excerpts on "Economic Development"
No longer available |Learn more- (Author)
- 2014(Publication Date)
- Orange Apple(Publisher)
____________________ WORLD TECHNOLOGIES ____________________ Chapter- 3 Economic Development Newly industrialized countries Other emerging markets Other developing economies Economic Development is the increase in the standard of living in a nation's population with sustained growth from a simple, low-income economy to a modern, high-income economy. Also, if the local quality of life could be improved, Economic Development would be enhanced. Its scope includes the process and policies by which a nation improves the economic, political, and social well-being of its people. Gonçalo L Fonsesca at the New School for Social Research defines Economic Development as the analysis of the Economic Development of nations. The University of Iowa's Center for International Finance and Development states that: 'Economic Development' is a term that economists, politicians, and others have used frequently in the 20th century. The concept, however, has been in existence in the West for centuries. Modernization, Westernization, and especially Industrialization are other terms people have used when discussing Economic Development. Although no one is sure when the concept originated, most people agree that development is closely bound up with the evolution of capitalism and the demise of feudalism. ____________________ WORLD TECHNOLOGIES ____________________ The study of Economic Development by social scientists encompasses theories of the causes of industrial-economic modernization, the phases or waves of Economic Development historically used by economic developers, plus organizational and related aspects of enterprise development in modern societies.
eBook - PDFDevelopment Management of Transforming Economies
Theories, Approaches and Models for Overall Development
- Fabiana Sciarelli, Azzurra Rinaldi(Authors)
- 2016(Publication Date)
- Palgrave Macmillan(Publisher)
4 When we talk about development, we refer to an economic growth process that occurs alongside a transformation of the society that could ultimately increase the welfare of the population. Countries that are at a developing stage face a transition that leads them from a condition of social and economic underdevelopment to a higher level of welfare and a better employment of productive capacities. In giving a more thorough definition, we can say that development represents an overall variation of economic, social and cultural influences that coincide with the income growth per capita. Obviously, this poses an issue about the definition. While it may be easy to identify an indicator for economic growth, which can be easily synthesized through the GDP, what is far more demanding is the study of an all-embracing indicator for a more structured outlook, including the wealth of the national popula- tion for instance. For this reason, the concept of development needs to be defined by its multidimensional capacity and by covering the different aspects that compose it. 1 Economic Development By identifying the factors the growth theories are based on, we can also iso- late the principal development factors, for example physical capital, tech- nical progress, the demographic factor, human capital and institutions. In economic theory, the physical capital represents the machinery used in the different phases of the production process. Several theories examine thoroughly the relationship that unequivocally connects the accumulation of physical capital with the economic growth of a country. An increase of physical capital on a national level reflects an increment of investments in new productive activities by domestic enterprises. If investments increase then the productive capacity of the country will also improve. In order to use the new machinery appropriately enterprises need to employ new workers, thereby providing an income to people who until then had none to speak of.
eBook - ePubLocal Economic Development in the 21st Centur
Quality of Life and Sustainability
- Daphne T Greenwood, Richard P F Holt(Authors)
- 2014(Publication Date)
- Routledge(Publisher)
Part 1Defining Economic Development, Quality of Life, and Sustainability
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Economic Growth vs. Economic Development
We wrote this book to answer rising concerns about the relationships among economic growth, quality of life and sustainability in state and local Economic Development.1 One of our underlying themes is that these issues must be tackled jointly. Too often, they are addressed one at a time in community planning, state and local budgeting, and tax policies. If local governments do focus on sustainable development or quality of life, it is usually through separate policies and initiatives. Taking a more comprehensive approach will make clear the linkages among economic growth, quality of life, and sustainability.2 Differentiating economic growth from Economic Development is a good place to start. Economists and policymakers often speak of growth and Economic Development as if they are the same. We make a very clear distinction between them.3Economic Growth vs. Economic Development
Economic growth is traditionally defined as increased total output or income. People also refer to growth when there is an increase in population or in land area as a city “grows” beyond its traditional boundaries.4 Economic Development, on the other hand, is much more. We define it as a broadly based and sustainable increase in the overall standard of living for individuals within a community. Conventional economics has equated economic growth with Economic Development, implicitly assuming that growth will bring improvement in quality of life and the standard of living. However, many now question this assumption. This shows up in the questions asked by community quality-of-life and sustainability groups and the indicators they choose (Chapter 8 ). Some scholarly work in economics (Daly 1996, Holt 2010a; Greenwood and Norgaard 1994) also raises these questions. Standard of living refers to overall
- Nicholas A. Ashford, Ralph P. Hall(Authors)
- 2011(Publication Date)
- Yale University Press(Publisher)
Development is not a purely economic phe-nomenon. According to Todaro and Smith (2009, p. 16), “Development must . . . be conceived of as a multi-dimensional process involving major changes in social structures, popular attitudes, and national institutions, as well as the acceleration of economic growth, the re-duction of inequality, and the eradication of poverty. Development, in its essence, must represent the whole gamut of change by which an entire social system, tuned to the diverse basic needs and desires of indi-viduals and social groups within that system, moves away from a condition of life widely perceived as un-satisfactory toward a situation or condition of life re-garded as materially and spiritually better.” According to Todaro and Smith (2009, p. 22), eco-nomic and social development in all societies should have at least the following three objectives:* • To increase the availability and widen the distribu-tion of basic life-sustaining goods such as food, shelter, health, and protection • To raise the quality of life (securing more mean-ingful jobs and enhancing cultural and human values) * See Section 3.4 for the contributions of Seers (1979) and Sen (1999) to the discussion of development. Economic Development and Prosperity: Current Theory and Debate 147 of successive industrial development that have oc-curred and are discussed later in this chapter. 3.2 THEORIES AND PERSPECTIVES ON ECONOMIC GROWTH The relationship between different factor endow-ments or types of capital and economic growth has been the subject of volumes of analysis, predictions, and reinterpretations. It is beyond the scope of this book to provide a comprehensive review of that liter-ature. What we do provide is the salient evolution of major thinking that has guided economic and indus-trial policy from Adam Smith to David Ricardo to current innovation-based perspectives, including the so-called knowledge-based economy.
eBook - ePubThe Paradox Of Wealth And Poverty
Mapping The Ethical Dilemmas Of Global Development
- Daniel Little(Author)
- 2018(Publication Date)
- Routledge(Publisher)
2 What Is Economic Development? T HE CENTRAL GOAL OF THIS book is to probe the normative issues that arise within the context of Economic Development. The volume is not a textbook in the economics of development. However, it is impossible to discuss development issues without a basic understanding of the nature of Economic Development—that is, the attributes of a developing economy; the goals that governments, agencies, and organizations usually have in trying to transform an economy; and the instruments of change through which this transformation can be stimulated. 1 This chapter provides a schematic account of the main features of Economic Development in the world today. I will sketch the economic and social processes within a given society that constitute the system through which wealth and income are produced and distributed. I will also examine some of the outcomes in the developing world today—economic growth, technological change, urbanization, structural transformation, and globalization—as well as poverty, inequality, malnutrition, low literacy, low levels of democracy, and low life expectancy. And I will discuss the goals that are usually assumed to drive Economic Development planning and policymaking. Discussions throughout the book will be focused on the world's poorest countries, which are sometimes referred to as the "less developed countries" (LDCs). The World Bank classifies national economies by income level, distinguishing between low-income, middle-income (lower and upper), and high income economies (World Bank 2001b: 334-335). In using the terms less developed country, Third World country, or extremely poor country, it is impor tant to avoid giving the impression of backwardness or unworthiness in the countries and cultures that we discuss. Economic Development is a mixture of processes—economic, social, political, and cultural—whose dynamics are not well understood, and it is certainly possible to advance in one domain more fully than in another
- Ishwar C. Dhingra(Author)
- 2023(Publication Date)
- Routledge(Publisher)
2 Economic Development: Concept and Measurement2.1 Introduction
A comparative study of nation states in South-East Asia and India need not be pursued in vacuum. We need to have a sound conceptual framework within whose dimensions an objective analysis can be pursued. We intend to present such a framework that will focus on the concept of Economic Development. We will also highlight the different criteria of development, besides Gross Domestic Product. We will conclude the chapter with an identification of criteria that can be used for purpose of comparison of countries at different levels of development.2.2 Meaning of Economic Development
A decision tree, such as the one in Fig. 2.1 below, can help identify the biggest obstacles to growth. A concerted effort on all these fronts is required to attain Economic Development. But, what is Economic Development?Fig. 2.1: Problem: Low Levels of Private Investment and Entrepreneurship.2.2.1 ‘Development’ Distinguished from ‘Growth’
Traditional View Traditionally, Economic Development has been considered as synonymous with economic growth. Economic growth has been defined as “an increase in real terms of the output of goods and services that is sustained over a long period of time, measured in terms of value added.” While National Income estimated at Current Prices (NICUP) is called nominal income, national income estimated at constant prices (NICOP) is called real national income.Modern View The traditional concept of viewing Economic Development as synonymous with economic growth was based on what came to be known as the “trickle-down strategy
eBook - PDFDevelopment Economics
Theory, Empirical Research, and Policy Analysis
- Julie Schaffner(Author)
- 2013(Publication Date)
- Wiley(Publisher)
1.3 Understanding the Development Process As an objective, development is widespread and sustained improvement in well-being. As a process, development is the web of economic and social change through which such widespread and sustained improvement comes about. Within the framework that economists bring to the study of development, the accumulation of assets is central to the development process. Throughout this book we define the term assets very broadly to include any physical, mental, or social resources or attributes that expand in a long-lasting way an economy’s capacity to provide the goods, services, security, and opportu- nities from which people derive their well-being. They include not only farm and business assets such as irrigation ditches, machines, and inventories but also infrastructure assets such as roads, telecommunications systems, and wells for safe drinking water; human assets such as education, job training, and health; and technological assets such as knowledge and use of improved methods for cultivating rice. We will see that: Development is most successful when an economy creates a healthy quantity and diverse array of assets, the assets are of high quality and durability, and the assets are distributed and employed in ways that channel their benefits broadly throughout society. The quantity, quality, and types of assets that an economy creates in any period of time and the way the value generated by the assets is distributed across diverse groups are determined within a developing country’s socioeconomic system. A country’s socioeconomic system encompasses the many activities of its people, who seek the best for themselves and their families and who interact with each other in many market and nonmarket forums. They compete and transact with each other in goods, labor, and financial markets.
eBook - PDFMicroeconomics
A Contemporary Introduction
- William A. McEachern(Author)
- 2016(Publication Date)
- Cengage Learning EMEA(Publisher)
Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Chapter 21 Economic Development 475 more stable foreign economies. This leaves less to invest domestically in either human or physical capital; without sufficient capital, workers remain less productive. Another reason why wages are low in poor countries is that businesses are poorly run. For example, in many Indian manufacturing firms, equipment is not well main-tained, employee theft is common because inventory is not well monitored, and work-ers are poorly trained and managed. A recent World Bank study found that offering simple management advice to Indian factories increased productivity by 20 percent. 21-2b Technology and Education What exactly is the contribution of education to the process of Economic Development? Education helps people make better use of resources. If knowledge is lacking, other resources may not be used efficiently. For example, a country may be endowed with fertile land, but farmers may lack knowledge of irrigation and fertilization techniques. Or farmers may not have learned how to rotate crops to avoid soil depletion. In low-income countries, 39 percent of those 15 and older were illiterate during the period 2005 to 2009, compared to 17 percent in middle-income countries, and only 2 percent in high-income countries. Many children in developing countries drop out of school because their families can’t afford it or would rather put the child to work. Child labor in developing countries obviously limits educational opportunities. Education also makes people more receptive to new ideas and methods. Countries with the most advanced educational systems were also the first to develop. In the 20th century, the leader in schooling and Economic Development was the United States.
eBook - PDFPerspectives on Economic Development
Public Policy, Culture, and Economic Development
- Ryan Merlin Yonk, Vito Bobek, Ryan Merlin Yonk, Vito Bobek(Authors)
- 2020(Publication Date)
- IntechOpen(Publisher)
4. Sudan: economic, social, and environmental dimensions of development We used the framework set in Figure 1 to explain how social and environmental indicators have affected development in its economic dimension as commonly measured by GDP. Variable selection is necessitated by availability of data, which is collected from the World Bank, World Development Indicators (WDI), and World Figure 1. Economic, social, and environmental dimensions of development. 66 Perspectives on Economic Development -Public Policy, Culture, and Economic Development Bank 2018 [6] and complemented with other sources. The study variables are defined as follows: Gross domestic product (GDP): GDP is the value of all goods and services produced in the economy expressed in current US dollars and stands for economic growth. Domestic investment (INV): INV is measured by gross capital formation consisting of additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construc-tion of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales and work in progress. Unemployment is represented by the total youth unemployment as percentage of total labor force ages (15 – 24), and it refers to the share of the labor force ages 15 – 24 without work but available for and seeking employment. Life expectancy at birth indicates the number of years a newborn would live if prevailing patterns of mortality at the time of its birth were to stay the same throughout its life.
eBook - PDFEducation and National Development
A Comparative Perspective
- Ingemar Faegerlind, Lawrence J. Saha(Authors)
- 2016(Publication Date)
- Pergamon(Publisher)
PART 2 Dimensions of Development This page intentionally left blank 3 63 Education, Economic Growth and Employment E c o n o m i c Growth as Development THERE have been few models o f development which have enjoyed the prestige and influence o f the e c o n o m i c growth model. Both theoretically and empirically the notion o f e c o n o m i c growth has long been at the heart o f development thinking and has dominated policy and research at national and international levels. There have been many points o f view as to h o w e c o n o m i c growth is best measured. However, whether seen in terms o f increases in per capita income, a shift in the labor force from the agricultural to the indus-trial sectors, a rise in energy consumption or the expanded use o f high technology such as automobiles, telephones or television, there can be little d o u b t that the recent histories o f most Western societies, at least until n o w , have been characterized b y steady e c o n o m i c growth and increased productivity. 1 E c o n o m i c growth models are o f relatively recent origin, although most have links with 18th-century theories o f progress, as, for example, the theory articulated by A d a m Smith in An Inquiry into the Nature and Cause of the Wealth of Nations ( 1 9 7 0 ( 1 7 7 6 ) ) . In general, e c o n o m i c growth models have been concerned with des-cribing the advancement and well-being o f nations as wholes. Although some models may consider the attitudes and beliefs o f individuals within societies, it is societal advancement which is o f primary con-cern in most explanations o f e c o n o m i c growth. Furthermore, while acknowledging the importance o f the agricultural sector in e c o n o m i c systems, most e c o n o m i c models focus on the process o f industrializa-tion, and include its origin and growth and the way that it promotes or impedes e c o n o m i c growth.
eBook - PDFMacroeconomics
A Contemporary Introduction
- William A. McEachern(Author)
- 2016(Publication Date)
- Cengage Learning EMEA(Publisher)
Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Chapter 19 Economic Development 427 more stable foreign economies. This leaves less to invest domestically in either human or physical capital; without sufficient capital, workers remain less productive. Another reason why wages are low in poor countries is that businesses are poorly run. For example, in many Indian manufacturing firms, equipment is not well main- tained, employee theft is common because inventory is not well monitored, and work- ers are poorly trained and managed. A recent World Bank study found that offering simple management advice to Indian factories increased productivity by 20 percent. 19-2b Technology and Education What exactly is the contribution of education to the process of Economic Development? Education helps people make better use of resources. If knowledge is lacking, other resources may not be used efficiently. For example, a country may be endowed with fertile land, but farmers may lack knowledge of irrigation and fertilization techniques. Or farmers may not have learned how to rotate crops to avoid soil depletion. In low- income countries, 39 percent of those 15 and older were illiterate during the period 2005 to 2009, compared to 17 percent in middle-income countries, and only 2 percent in high-income countries. Many children in developing countries drop out of school because their families can’t afford it or would rather put the child to work. Child labor in developing countries obviously limits educational opportunities. Education also makes people more receptive to new ideas and methods. Countries with the most advanced educational systems were also the first to develop. In the 20th century, the leader in schooling and Economic Development was the United States.
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