1. UNDERDEVELOPMENT &
DEVELOPED ECONOMIES
DEFINATION OF UNDERDEVELOPED ECONOMY
CAUSES OF UNDERDEVELOPMENT
MEANING OF ECONOMIC DEVELOPMENT
FEATURES OF ECONOMIC DEVELOPMENT
NEED OF ECONOMICS DEVELOPMENT
DETERMINANTS OF ECONOMICS DEVELOPMENT
2. CAUSES OF
UNDERDEVELOPMENT ECONOMY
Y
ECONOMIC CAUSES
YY
1. MARKET IMPERFECTION
INFLEXIBLE ECONOMY P
P
PR
2.
OD
VICIOUS CIRCLE OF POVERTY PP
P
UC
3.
TI
P
ON
LACK OF CAPITAL FORMATION
AC
4.
PO
TU
L
SS
AL
IB
PR
IL
NON ECONOMICS CAUSES
IT
OD
Y
UC
LI
NE
SOCIALCAUSES
TI
1.
ON
LI
RELEGIOUS CAUSES
NE
2.
3. POLITICAL CAUSES
4. ADMINISTRATIVE CAUSES X
M
M C
C
M
C
3. DEFINATION OF
UNDERDEVELOPMENT ECONOMY
BY “M.P. TODARO” UNDERDEVELOPED ECONOMY
IS THAT ECONOMY IN WHICH THERE ARE LOW
LEVEL OF LIVING,ABSOLUTE POVERTY,LOW PER
CAPITA INCOME,LOW CONSUPTION
LEVELS,POOR HEALTH SERVICE, HIGH DEATH
RATES,HIGH BIRTH RATES & DEPENDENCE ON
FOREIGN ECONOMIES
4. MEANING OF ECONOMIC
DEVELOPMENT
IN WORDS OF
APPROACHES
SALVATORE,”ECONOMIC REGARDING
EVELOPMENT HAS BEEN ECONOMIC
DEVELOPMENT
DEFINED AS THE PROCESS
WHERE BY A COUNTARY’S
REAL AS PER CAPITA INCOME
& GROSS NATIONAL
PRODUCT INCREAS OVER A
SUSTAINED PERIOD OF TIME
THROUGH CONTINUOUS
INCREASE IN PER CAPITA
PRODUCTIVITY”. TRADITIONAL
& MORDERN
APPROACH VIEW
5. CAPITA INCOMES
NATIONAL
INCOME
PER CAPITA INCOME = POPULATION INCOME
REAL NATIONAL INCOME
REAL PER CAPITA INCOME = POPULATION SIZE
6. FEATURES OF ECONOMIC
DEVELOPMENT
INCREASE IN REAL GROWTH OVER LONG
NATIONAL INCOME PERIOD
INCREASE IN REAL HUMAN
PERE CAPITA INCOME DEVELOPMENT
REDUCTION IN REDUCTION IN
INCOME POVERTY
INEQUALITIES INSTITUTIONAL
STRUCTURAL DEVELOPMENT
CHANGES
7. NEED OF ECONOMIC
DEVELOPMENT
1. INCREASE IN NATIONAL INCOME
2. HIGH STANDARD OF LIVING
3. MORE CAPITAL FORMATION
4. LESS DEPENDENCE ON AGRICULTURE
5. SELF SUFFICIENCY
6. FORMATION OF HUMAN CAPITAL
8. DETERMINANTS OFECONOMIC
DEVELOPMENT
DETERMINANTS
OF ECONOMIC
DEVELOPMENT
ACCORDING TO DR. R.T.
GILL,”DETERMINANTS OF
ECONOMIC DEVELOPMENT
DEPEND UPON THE SIZE,
ORGANISATION & NATURE
OF PRODUCTION
CAPACITY OF AN
ECONOMY.”
ECONOMIC
DETERMINANTS - NON ECONOMIC
DETERMINANTS
9. VICIOUS CIRCLE OF POVERTY
NURKSE SAYS,”A LOW INCOME
LIMITED
PROCESSING
COUNTRY IS POOR POWER
BECAUSE IT IS
POOR.”
SMALL AMOUNT
OF INVESTMENT
10. ACCORDING FIRST
FIVE YEAR PLAN AN
UNDERDEVELOPMENT
ECONOMY IS
CHARACTERISED BY
THE CO-EXISTENCE IN
GREATER OR LESS
DEGREE OF
UNUTILISED
MANPOWER ON ONE
GUNNER MYRDAL HAND
SAYS,”AN UNDER
DEVELOPMENT COUNTRY
IS THAT IN WHICH THERE
IS A COSTELLATION
OFNUMEROUS
UNDESIRABLE
CONDITION OF WORK &
LIFE.”
11. HERE WE SEE ABOUT
ECONOMIC CONDITIONS OF
COUNTRY
12. ECONOMIC CAUSES
1. MARKET
IMPERFEC
TION
2.IMMOBILE
LABOUR
3.MONOPOLISTICS
PRACTICE
