Before the author of this paper proceeds with this chapter, one has to define what development is. Put in simple terms, authors Peet and Hartwick , development economics is the part of economics that deals with how a developing country can improve its economy in terms of growth and better living standards and conditions for its citizens. This includes economic policies, education, health, and working conditions. All these factors are considered to be the minimum essential factors that all humans require to live. It can also be defined as the differing theories con-cerning growth, poverty, institutions, and inequality in the less developed coun-tries . Development economics also is also viewed differently according to different cultures as well …show more content…
There also seems to be disputes among the faction of society that believe that even if better living standards and conditions for its citizens are achievable, the question is what is the right method to take in order to achieve it. Development economics is a very interesting topic, as it tends to raise different important issues in the society. According to Peet and Hartwick, ‘it has the power to move people’ . As a result of this, many conflicts revolve around development and its usage because it varies from political agendas to social reforms as well as reasons that do not necessarily adopt the main goal of the term development. Development as a definition is supposed to mean a more level playing ground for all in terms of better economic conditions, yet some use development as a means to gain riches and …show more content…
This is because taking into account the amount of income made in a society divided by the population simply doesn’t factor in the individual standards of living. Furthermore, according to Ravallion , development economics is simply more than economic indicators that solely focus on income, stating that the well-being of the citizens is a highly important factor. However, Bramell further states that the capability measure (living standard) of development cannot be easily measured. Furthermore, it is suggested that its view on development is based the ownership of goods, which is too materialistc. Lastly the aforementioned author also considers that focisng on lving standards alone is not enough to measure development because living standards is dependent on the growth of GPD as more income is needed to invest in factors that increase living standards such as health and
At one point in time poverty was the general fact of the world. Man was always expected to live on the line of poverty, majority of the economic thinkers couldn’t see the world moving away from this standard but we did and have gained great affluence. As society has grown from this poverty stricken state it once was in, into an affluent one, the ideas used to run it have yet to change in some ways. In The Affluent Society, John Kenneth Galbraith explains how with great economic growth there should be growth in economic ideas as well.
Although our world is becoming increasingly more technologically advanced and developed, one billion people are still expected to live in extreme poverty by 2015 (Country Comparisons). As long as humanity has existed, there have been impoverished people left behind in the wake of advancement. Many philosophical theories have been published attempting to solve global poverty, and while some are better than others, they all draw attention to various facets of the issue. Famous theories have built upon one another, giving the next generation new ideas to sift through and ultimately attempt to uncover a viable option to help those in need. The recently introduced Capabilities Approach published by economist Amartya Sen and philosopher supported by Martha Nussbaum gives the most applicable solution to a continuingly complicated problem. While revolutionary, the Capabilities Approach was only conceivable due to centuries of meticulous contemplation of a global issue spanning millennia.
In this essay, two countries, one developed and one developing, will be compared based on their economic growth and living standards, while also touching base upon the countries inflation rate, unemployment rate, and their current balance. The two countries chosen for comparison are the United Kingdom (developed) and Sierra Leone (developing). Based on previous knowledge, it is expected that the research conducted for this essay will show that the United Kingdom is further ahead in the world than Sierra Leone in respect to their economic growth and living standards as well as their current balance and unemployment rate. Before any of the above topics are discussed, it’s important to know a bit about the chosen countries background.
Standard of Living, in a purely material dimension is the average amount of GDP per person in a country (therefore determining access to goods and services). However the term has a much broader, non-material dimension involving issues of quality of life and are therefore much more difficult to quantify. There is no single measure of SoL, but a range of indicators, which can be used together to give a good idea of a countries’ SoL. Reasons for GDP figures alone giving an incomplete understanding of SoL in a country will be explained in this essay, along with problems faced when comparing levels of development between countries.
As Escobar points out in The Problematization of Poverty, one of the many changes in the post-WW2 era was the "discovery" of mass poverty throughout the world. This "discovery" had massive implications for development discourse. Prior to WW2, development discourse was limited to the colonial experience. But with the end of colonial rule lurking on the horizon, western academics began to formulate theories of economic growth and "modernization." As a result, an entire genre of academic research emerged: the development discourse. The aim of development discourse was to chart out patterns of growth (which were based on the historical successes of the West) that newly independent countries could use, primarily to escape vicious cycles of poverty, famine, etc.
In international parlance, development encompasses the need and the means by which to provide better life for people in poor countries and it includes not only economic growth, although that is crucial, but also human development like...
This essay will detail will examine how development is defined and the relative inaccuracies which surround it. Good, you define terms and introduce the purpose of the essay. As mentioned above, many economists use GNP or GDP to measure. development. The. GNP may be defined as the total value, or output of goods.
There are countless causes of poverty in under developed countries such as overpopulation, disease, and how the government distributes its wealth. When you have people in developing countries have far too many children than they should and don’t have the means to take care of them you get overpopulation, when you get overpopulation you get less job opportunities, and when that happens you people who can’t take care of themselves or their children. Two factors have been shown that correlate with overpopulation which is poverty and education. When you have higher education in a community you will tend to have a decrease in birth because when people get education especially in women you will have a decline in birthrates because when they get their education they usually want to get a good job. (Poverty and overpopulation).
There are at least four different research perspectives about the relationship between development and economic growth. Firstly, economic growth is the basis for social development. Secondly, economic growth and social development are not necessarily linked. Thirdly, both economic growth and social development are not basic causes by each other, but they depend on interaction. Fourthly, social development is the prerequisite for economic growth (Mazumdar. 1...
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.
When looking through the topic of development, two drastically different ways to assess it arise. The majority of the western world looks at development in terms of per capita GNP. This means each country is evaluated on a level playing field, comparing the production of each country in economic value. Opposite this style of evaluation is that of the alternative view, which measures a country’s development on its ability to fulfill basic material and non-material needs. Cultural ties are strong in this case as most of the population does not produce for wealth but merely survival and tradition.
McMichael, Philip, ed 2012. Development and Social Change: A Global Perspective, 5th ed. London: Sage Publications, Inc.
Economic growth is the most effective instrument for reducing poverty and enhancing the quality of life in developing countries. The benefits brought about from economic growth is strong growth and business opportunities enhance incentives. This may lead to the rise of a strong and growing group of entrepreneurs, which should generate pressure for enhanced administration. Strong economic growth therefore advances human development, which in turn promotes economic growth. But, under different conditions, comparative rates of development can have altogether different consequences for neediness, the occupation prospects of poor people and more extensive pointers of human development. The extent to which growth decreases neediness depends on the extent to which the poor take an interest in the growth process and share in its returns (Riley, G.
It is natural to be misled by the idea that economic growth is the key
in relation to development. Development is explained by the Oxford Dictionary as the process of developing or developed in a specified state of growth or advancement. Underdeveloped as according to the Oxford Dictionary is ‘not fully developed or not advanced economically’ which is meant for a country or a region. We can certainly see the difference between underdeveloped and developed where the changing situation emerges from the economic point of view. To be more specific, worlds within world were created i.e. the nomenclature of First World and Third World came into picture. The First World is said to be the industrialised, capitalist countries of Western Europe, North America, Japan, Australia, and New Zealand who are developed (as explained in the definition). The Third World includes the developing countries of- Asia, Africa and Latin America who are still in the mode of developing. Normally we understand the situation of underdevelopment is because the third world was under the colonies or the colonial rule for a certain period of time and lags behind the first world in every aspects like- social, economical, political, technological advancements which are yet to be seen in the third world fully like the first world. In this paper we will talk about various theorists from - Karl Marx (capitalism and class conflict), Kay and Amin (merchant capitalism, colonialism and neo-colonialism), Vladimir Lenin (imperialism), Andre Gunder Frank (third world dependency), Lipton (urban bias) and dependency theory. Here in this paper we will try to explain and understand the relevance of the various underdevelopment theories and different attributes related to it terms of the Indian Context.