What Is Development?

Topics: Poverty, Economics, Economic growth Pages: 5 (1797 words) Published: January 2, 2013
The aim of this eassy is to state what is is meant by economic development and growth as while as discussing the why Zambia regardless of th........ The eassy will beginft by defining the key concepts such as economic development and growrth. It will then discuss........... thereafter, a conclusion based on the evidence that will be presented in this paper shall be drawn. Economic development is a normative concept i.e. it applies in the context of people's sense of morality (right and wrong, good and bad). The definition of economic development given by Michael Todaro (2007...) is an increase in living standards, improvement in self-esteem needs and freedom from oppression as well as a greater choice. The economic development of a country or society is usually associated with (amongst other things) rising incomes and related increases in consumption, savings, and investment. Of course, there is far more to economic development than income growth; for if income distribution is highly skewed, growth may not be accompanied by much progress towards the goals that are usually associated with economic development. Thus economic development is the improvement in the welfare of the entire soceity. It calls for the increase in the well being of the people in a given community or country. Economic development is said to occur when the majority of the population in the labour force are employed in high paying jobs such that poverty levels reduce drastically. Economic Growth is a narrower concept than economic development. It is an increase in a country's real level of national output which can be caused by an increase in the quality of resources (by education etc.), increase in the quantity of resources & improvements in technology or in another way an increase in the value of goods and services produced by every sector of the economy. Economic Growth can be measured by an increase in a country's real GDP (gross domestic product) or real GDP percapita (which is real GDP divided by the population). Economic growth is one of the factors that leads to economic development. According to Ranis et al. (2000), economic growth and economic development is a two-way relationship. Moreover, the first chain consists of economic growth benefiting economic development with GDP. Specifically, GDP increases economic development by expenditure from families, government and organizations such as NGOs. With the rise in economic growth, families and individuals will likely increase expenditures with heightened incomes, which in turn leads to growth in economic development. Further, with the increased consumption, health and education grow, also contributing to economic growth. In addition to increasing private incomes, economic growth also generate additional resources that can be used to improve social services (such as healthcare, safe drinking water, etc.). By generating additional resources for social services, unequal income distribution will be mitigated as such social services are distributed equally across each community, thereby benefiting each individual. Thus, increasing living standards for the public.[14] Concisely, the relationship between economic growth and economic development can be explained in three ways. First, increase in average income leads to improvement in health and nutrition (known as Capability Expansion through Economic Growth). Second, it is believed that social outcomes can only be improved by reducing income poverty (known as Capability Expansion through Poverty Reduction). Lastly, social outcomes can also be improved with essential services such as education, healthcare, and clean drinking water (known as Capability Expansion through Social Services).[15] John Joseph Puthenkalam's research aims at the process of economic growth theories that lead to economic development. After analyzing the existing capitalistic growth-development theoretical apparatus, he introduces the new model which integrates the variables of...
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