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Economics, Institutions, and Development: A Global Perspective

This document discusses key concepts in economic development from a global perspective. It covers topics like the disparities between rich and poor nations and families, challenges facing developing countries, different approaches to development economics, and the multidimensional nature of development including its social, cultural, and institutional aspects beyond just economic growth. The core is that development involves increasing living standards, reducing inequalities, eradicating poverty, and expanding individual freedoms and choices.

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0% found this document useful (0 votes)
150 views16 pages

Economics, Institutions, and Development: A Global Perspective

This document discusses key concepts in economic development from a global perspective. It covers topics like the disparities between rich and poor nations and families, challenges facing developing countries, different approaches to development economics, and the multidimensional nature of development including its social, cultural, and institutional aspects beyond just economic growth. The core is that development involves increasing living standards, reducing inequalities, eradicating poverty, and expanding individual freedoms and choices.

Uploaded by

rabia liaqat
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 16

Economics, Institutions, and

Development: A Global
Perspective

Adopted for Economic Development by

Sohail Zafar Qureshi


Gift University Gujranwala

ECONOMIC DEVELOPMENT
Michael P Todaro

Chapter 01 Economic Development 1


Economics, Institutions, and Development: A Global
Perspective

While humanity share single planet it is a


planet on which there are two worlds the
world of the riches and the world of the poor.
Ranan Weitz 1986

Chapter 01 Economic Development 2


How Three Quarters Live
 As people trough the world awake each
morning to face a new day they do so under
very different circumstances.

 More then enough to eat well clothed and healthy with


reasonable degree of financial security.
 Others ¾ of the world are much less fortunate there
health is poor, they can’t read or write, unemployed,
there life is bleak and uncertain.

Chapter 01 Economic Development 3


 A Typical extended family in rural Asia. The
Asian household is likely to comprise of 10 or
more people including parents five to seven
children two grandparents and some aunts
and uncles. They have a combined annual
income in money and in kind. Together they
live in a portly constructed one room house
suppose tenants.

Chapter 01 Economic Development 4


 The work is hard the sun is hot and aspirations for a
better life are continually being snuffed out. In this
part of the world the only relief from the daily
struggle for physical survival lives in the spiritual
traditions of the people.

 If are to examine two representative families one a


wealthy family from the local ruling class and the
other a peasant background we would no doubt also
be struck by the wide disparities in their individual
living conditions.
Chapter 01 Economic Development 5
 One could easily be disturbed by the contrast
of two life. How ever had we looked at almost
any other major city in Latin America, Asia,
and Africa; we would have seen much the
same contrast.

 It arise several question.

Chapter 01 Economic Development 6


Questions
 Why does such obvious affluence coexist with such dire poverty
not only across different continents but also within the same
country or even the same city?

 How can traditional low productivity subsistence society be


transformed into modern high producitivity high income nations?

 To what extent are the development aspirations of poor nations


helped or hindered by the economic activities of rich nations?

 By what process and under what conditions do rural subsistence


farmers in the remote regions of Nigeria Brazil and Philippines
evolve int successful commercial farmers?

Chapter 01 Economic Development 7


Economics and Development Studies

 The study of economic development is one of


the newest most exciting and most
challanging bracnces of the broader
disciplines of economics and political
economy.

 One could claim that Adam Smith was the


first development economist and that his
wealth of nations published in 1776 was the
first tretise on economic development.
Chapter 01 Economic Development 8
 Yet there are some people who would still
claim that development economies is not
really a distinct branch of economics in the
same sense as is say macroeconomics labor
economies public finance or monetary
economic. Rather they would assert it is
simply an amalgamation and basically an
unaltered application of all these traditional
fields.
Chapter 01 Economic Development 9
The Nature of Development Economics

 Traditional Economics.
 Political Economy
 Development Economics

Chapter 01 Economic Development 10


Why study development economics?
 What is real meaning of development? Chapter 1 and 3
 What are the sources of national and international economic growth? Chapter 2, 4, 5
 Which are more influential theories? Chapter 3
 What are learned from historical record? Chapter 4
 Role of men ad women? Chapter 5,6,8,9 11
 Growth in population is development? Chapter 6
 Environmentally sustainable development? Capter 10-18
 Do education is development? Chapter 11
 Is international trade is desirable? Chapter 12
 Third world and foreign debt? Chapter 13
 Do agriculture promote development? Chapter 14
 Foreign exchange policy and third world? Chapter 13 14
 Should rich invest in poor? Chapter 15,18
 What is impact of foreign Aid? Chapter 15
 Free markets and govt role? Chapter 17
 Privatization a key to success? Chapter 16, 18
 What are most significant issues facing the developing world? Chapter 18

Chapter 01 Economic Development 11


The Important Role of Values in
Development Economics

 The social science of economics an claim


neither scientific laws nor universal truths. As
mentioned earlier in economics there can
only be tendencies and even these are
subject to great variations in different
countries and cultures and at different times.

Chapter 01 Economic Development 12


Need to Go Beyond Simple Economics

 We discover that resolving development problems to


achieve development is a much more complicated
then some economics would lead us to believe.
 Some economists occasionally make the mistake of
confusing their theories with universal truths so they
also sometimes mistakenly dismiss these no
economic variables as non quantifiable and
therefore of dubious important they often play a
critical role in the success or failure of the
development effort.

Chapter 01 Economic Development 13


Definition

Development must therefore be conceived as


a multidimensional process involving major
changes, in social structure popular attitudes
and national institutions as well as the
acceleration of economic growth the
reduction of inequality and the eradiation of
poverty.

Chapter 01 Economic Development 14


Core Values of Development

 Sustenance: The Ability to meet basic needs


 Self esteem: To be a person
 Freedom of Servitude: To be able to chose.

Chapter 01 Economic Development 15


Three Objectives of Developmet

 To increase the availability and widen the


disturbance of basic life sustaining goods.
 To raise levels of living.
 To expand the range of economic ad social
choices.

Chapter 01 Economic Development 16

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