2. What is Development
• 1- Economic Progress is an essential
component of Development
• 2-It must encompass more than material and
financial side of people lives
• 3-New event
• 4-deveoping country=a poor country that is
trying to develop or improve its economy
3. Economic growth
• 1-Economic growth =Growth of national
income of the country
• 2-It increase in a net national product in a
given period of time say a year
• 3- The country will registered economic
growth only if per capita income was gone up
when the national income growth at a higher
rate than the growth rate of population
4. • The scope of economic
development includes the process
and policies by which a nation
improves the
economic, political, and social well-
being of its people.[2]
5. Economic development
• Economic development is a term
that generally refers to the
sustained, concerted effort of
policymakers and community to
promote the standard of living and
economic health in a specific area.
6. ------------
• . Such effort can involve multiple
areas including development of
human capital, critical
infrastructure, regional
competitiveness, environmental
sustainability, social
inclusion, health, safety, literacy, an
d other initiatives.
7.
8. Development
• Such effort can involve multiple areas
including development of human
capital, critical infrastructure, regional
competitiveness, environmental
sustainability, social
inclusion, health, safety, literacy, and other
initiatives. Economic development differs
from economic growth
9. ---
• . Whereas economic development is a policy
intervention endeavor with aims of economic
and social well-being of people, economic
growth is a phenomenon of market
productivity and rise in GDP.
Consequently, as economist Amartya Sen
points out: “economic growth is one aspect
of the process of economic development.” [1]
10. Economic Development
• The scope of economic
development includes the process
and policies by which a nation
improves the
economic, political, and social well-
being of its people
11. Economic Development
• '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.
12. 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
13. Mansell&Wehn
• Mansell and Wehn also state that economic
development has been understood since the World
War II to involve economic growth, namely the
increases in per capita income, and attainment of a
standard of living equivalent to that of industrialized
countries.[4][5] Economy development can also be
considered as a static theory that documents the
state of economy at a certain time. According to
Schumpeter (2003), the changes in this equilibrium
state to document in economic theory can only be
caused by intervening factors coming from the
outside
14. Economic development
• In economics, the study of economic
development was borne out of an extension
to traditional economics that focused entirely
on national product, or the aggregate output
of goods and services. Economic
development was concerned in the
expansion of people’s entitlements and their
corresponding
capabilities, morbidity, nourishment, literacy,
education, and other socio-economic
indicators.
15. Economist
• . Borne out of the backdrop of
Keynesian, advocating government
intervention, and neoclassical
economics, stressing reduced
intervention, with rise of high-growth
countries (Singapore, South Korea, Hong
Kong) and planned governments
(Argentina, Chile, Sudan, Uganda),
16. Economic Development
• economic development, more generally
development economics, emerged amidst these
mid-20th century theoretical interpretations of
how economies prosper.[1] Also, economist Albert
O. Hirschman, a major contributor to
development economics, asserted that economic
development grew to concentrate on the poor
regions of the world, primarily in Africa, Asia and
Latin America yet on the outpouring of
fundamental ideas and models.
17. Economic development
• Economic development typically involves
improvements in a variety of indicators such
as literacy rates, life expectancy, and poverty
rates. GDP does not take into account other
aspects such as leisure time, environmental
quality, freedom, or social justice; alternative
measures of economic well-being have been
proposed (
18. -----------
• .More Essentially, a country's economic
development is related to its human
development, which encompasses, among
other things, health and education. These
factors are, however, closely related to
economic growth so that development and
growth often go together
19. Underdevelopment
• Underdevelopment is a term often
used to refer to economic
underdevelopment, symptoms of
which include lack of access to job
opportunities, health
care, drinkable
water, food, education and housing
20. International Relation
• Although international relations and
international trade have existed for
many hundreds of years, it is only in
the past century that international
development theory emerged as a
separate body of ideas.]
21. ----------------
• ]More specifically, it has been
suggested that 'the theory and practice
of development is inherently
technocratic, and remains rooted in the
high modernist period of political
thought that existed in the immediate
aftermath of the Second World War'.[6]
22. -----------
• Throughout the 20th
century, before the concept of
international development
became a common word, four
aspects were used to describe
the idea
23. -
• political and economic liberalism, and the
significance of "free markets"
• social evolution in extremely hierarchized
environment
• Marxist critiques of class and imperialism
• anti-colonial take on cultural differences and
national self-determination
24. Post World War II
• The second half of the 20th century
has been called the 'era of
development'.[The origins of this
era have been attributed to:
•the need for reconstruction in the
immediate aftermath of World War
25. Colonialism
•The evolution of colonialism or "colonization"
into globalization and the establishment of new
free trade policies between so-
called 'developed' and 'underdeveloped'
nations.
the start of the Cold War and the desire
of the United States and its allies to
prevent the Third World from drifting
towards communism
26. Independence-
• International Development in its very
meaning is geared towards colonies that
gained independence. The governance of the
newly independent states should be
constructed so that the inhabitants enjoy
freedom from poverty, hunger, and insecurity
27. Marshal Plan
• The launch of the Marshall Plan was another
important step in setting the agenda for
international development, combining
humanitarian goals with the creation of a
political and economic bloc in Europe that
was allied to the U.S
28. -----
• This agenda was given conceptual support
during the 1950s in the form of
modernization theory espoused by Walt
Rostow and other American economists] The
changes in the 'developed' world's approach
-to international development were further
necessitated by the gradual collapse of
Western Europe's empires over the next
decades; now independent ex-colonies no
longer received support-
29. Marshal Plan
• The Marshall Plan (officially the European
Recovery Program, ERP) was the large-scale
American program to aid Europe where the
United States gave monetary support to help
rebuild European economies after the end of
World War II in order to combat the spread of
Soviet communism.[1] The plan was in operation
for four years beginning in April 1948. The goals
of the United States were to rebuild a war-
devastated region, remove trade
barriers, modernize industry, and make Europe
prosperous again
31. • By the late 1960s, the critics of modernization were
advancing a dependency theory to explain the evolving
relationship between the West and the Third
World.[citation needed] In the 1970s and early 1980s, the
modernists at the World Bank and IMF adopted the
neoliberal ideas of economists such as Milton
Friedman or Bela Balassa, which were implemented in
the form of structural adjustment programs,[11] while
their opponents were promoting various 'bottom up'
approaches, ranging from civil disobedience and
conscientization to appropriate technology and Rapid
Rural Appraisal.[
32. • By the 1990s, there were some writers for whom
development theory had reached an impasse[13]
and some academics were imagining a post
development era.[14][15] The Cold War had
ended, capitalism had become the dominant
mode of social organization, and UN statistics
showed that living standards around the world
had improved over the past 40 years.[16]
Nevertheless, a large portion of the world's
population were still living in poverty, their
governments were crippled by debt and concerns
about the environmental impact of globalization
were rising.
33. Underdevelopment
• Underdevelopment takes place when resources
are not used to their full socio-economic
potential, with the result that local or regional
development is slower in most cases than it
should be. Furthermore, it results from the
complex interplay of internal and external
factors that allow less developed countries only
a lop-sided development progression.
Underdeveloped nations are characterized by a
wide disparity between their rich and poor
populations, and an unhealthy balance of
trade.[2]
35. History of Underdevelopment
• The world consists of a group of rich nations and
a large number of poor nations. It is usually held
that economic development takes place in a
series of capitalist stages and that today’s
underdeveloped countries are still in a stage of
history through which the now developed
countries passed long ago. The countries that
are now fully developed have never been
underdeveloped in the first place, though they
might have been undeveloped.[4]
36. Per Capita Income
•
• Per capita income is often used as a measure of
the wealth of the population of a
nation, particularly in comparison to other
nations. It is usually expressed in terms of a
commonly-used international currency such as
the Euro or United States dollar, and is useful
because it is widely known, easily calculated from
readily-available GDP and population estimates
and produces a straightforward statistic for
comparison
39. The Vicious Circle
Low Income
Low
Productivity - Low Saving
Low Investment
40. What is Vicious Circle
• 1-The Economic Development is
impossible
• 2-People are too poor to save
• 3-No investment in the country
• 4-Low level of productivity
41. Factors determining the rate of
Economic development
• 1-Availablity of natural resources
• 2-The rate of capital formation
• 3-Capital-out put ratio
• 4-Technological progress
• 5-Dynamic Entrepreneurship
• 6-Rate of growth of population
• 7-Socail overheads like education &health
• 8-Non-Economic factor
42. Underdevelopment
• Is a term often used to refer to
economic
underdevelopment, symptoms
of which include lack of access to
job opportunities, health
care, drinkable
water, food, education and
43. • Underdevelopment takes place when resources
are not used to their full socio-economic
potential, with the result that local or regional
development is slower in most cases than it
should be. Furthermore, it results from the
complex interplay of internal and external factors
that allow less developed countries only a lop-
sided development progression. Underdeveloped
nations are characterized by a wide disparity
between their rich and poor populations, and an
unhealthy balance of trade
