The Definition Of Economy In Different Decades Starting From 1970’S

1970’s: In the 70’s it was thought that a country economy would be developing if the PCI increasing.

1980’s: Country is developing if the poverty, unemployment, and unequal distribution of income are decreasing.

1990’s: Country is developing if the peoples are developing not the things.

Developing of people means to improve the quality of life i.e. increase standard of living (batter education, higher health standards, reduction in poverty, cleaner environment, greater individual freedom, greater & equal opportunity, etc) ==► (multidimensional approach).

DEVELOPMENT ECONOMICS IMPORTANT DEFINITIONS

1) W E Lkhan: A process which makes people in general better off by increasing there command over goods and services and by increasing choices open to them.

2) Mair & Bodwin: A process in which the economy’s real national income increases over a long period of time and if the rate of development / output is greater then the rate of growth of population then the per capital income increases.

3) Friedmann: An innovative process leading to structural transformation of the social system.

4) Klidee Berger: Economic development implies both more output and changes in the technical and institutional arrangements by which it is produced and distributed.

5) Development can also be defined as “An attack on chief evils of world today i.e. malnutrition, diseases, illiteracy, unemployment, and inequality”.

ELEMENTS OF DEVELOPMENT:

• Improvement in material welfare.

• Reduction in mass poverty.

• Provision batter health facilities.

• Food supply.

• Sanitation.

• Housing.

• Improvement in transportation.

• Energy.

• Changes of composition in input and output by sector organization of economy in a manner which gene rates production and employment for masses.

• Greater participation of broad based groups in making decisions for improving welfare of masses.

THERE ARE THREE TYPES OF ECONOMIC STRUCTURES:

1) Primary Economic Structure…….==►Includes Agriculture & Farming etc.

2) Secondary Economic Structure….==► Includes construction, Manufacturing etc.

3) Tertiary Economic Structure…….==► Includes Services etc.

PRIMARY SECTOR OF INDUSTRY:

The primary sector of industry generally involves the conversion of natural resources into primary products. Most products from this sector are considered raw materials for other industries. Major businesses in this sector include agriculture, agribusiness, fishing, forestry and all mining and quarrying industries.

The manufacturing industries that aggregate, pack, package, purify or process the raw materials close to the primary producers are normally considered part of this sector, especially if the raw material is unsuitable for sale or difficult to transport long distances.

SECONDARY SECTOR OF INDUSTRY:

The secondary sector of industry includes those economic sectors that create a finished, useable product: manufacturing and construction. This sector of industry generally takes the output of the primary sector and manufactures finished goods or products to a point where they are suitable for use by other businesses, for export, or sale to domestic consumers.