economic develpoment

Economic development

What is meant by economic development	Link between development and freedom Reducing poverty, public provision of education, healthcare, maintanance of law and order, guarantee of civil liberties and oppurtunity for civic participation
Source of economic growth	1) natural factors- hard to maek more land but land reclamation is an option- most countries try to make more use of their land through- fertiliaztion, better planning, imporved agricultural, and building upwards like in hongkong 2) Human capital factors- incouraging pop. growth, immigration Most develpoing countries not keen to increase pop. and increasing pop is very long term Most emphasis is on improving quality of the human capital0 improving healph care, improving education, voc. training. In addition provision freas water and sanitation can also improve health 3) physical capital and tech factors- factories, machinery, shops, offices, vehicles- affected by level of saving, domestic investment, gov intervention, forign investment. quality improved through- hugher education,r and d, access to forign tech and expertise Two concepts here: Capital widening: when extra capital is used with an increased amount of labour bu the ratio per worker does not change Capital deepening: increase in output per worker 4) institutional factors- adequat banking system, structured legal system, infrastructure, polit stability, good international relationships.
Does economic growth lead to economic develpoment	1) higher incomes-leads to a higher gdp per head of populationand this should to an extent lead tp higher standard of living, also depend on how fairly the income is distributed 2) improved indicators of welfare Ecomic growth has led to higher avg. years of schooling, literacy rates but not all sections of the population. 3) higher gov revenue- increased gov rev from tax Can better provide services 4) creation of inequality: leads to increase in gdp but also inequality. gap between rich and poor still widens, trickle down affect doesnt seem to work in developing countries 5) Negative externalities and lack of sustainability Econ. growth often leads to pollutionb,and other negative externalities Humans will be more severley effected in develpoing countries 1) access to fresh water will be harder 2) tropical deisises will sprad furhter north 3) droughts will be more frequent 4) food production is liekly to suffer 5) people will be affected by rising sea levels
Common charachteristics of developing countries	1) low standards of living charcahterized by low incomes, inequality, poor health and inadequate education 2) low level of productivity ( output per person) 3) high rate of population frowth and dependency burdens 4) high and rising levels of unemployment 5) substantial dependence on agriculture and primary products 6) prevlance om imperfect markets and limited information 7)dominance, dependance and vulnerability in international relation
Diversity among developing countries	1) resource endowment 2)historical background 3) geographic and demographic factors 4) ethnic and religious breakdowns 5) structure of industry 6) per capita income level 7) politcal structures
International development goals