CHAPTER TWO

ECONOMIC AND SOCIAL DEVELOPMENT

What is development?

Development: Refers to the slow changes from low stage to high stage of living
standards. Normally development include both economic and social development.
Development include both social, political, economic, cultural and technological
progress. However can therefore development include both qualitative and quantitative.

LEVELS OF DEVELOPMENT

Development can be categorized in to two levels which are:-

A. INDIVIDUAL/PERSONAL LEVEL

Individual development: This refers to the increase in personal skills, capacity of great
freedom, creativity, self discipline and material well being.

INDICTORS OF PERSONAL/INDIVIDUAL DEVELOPMENT

Qn: Briefly outline five measures of individual develoment.

The common indicators of individuals development includes.

1. Level of education: in a developed country the level of education among individuals is

higher than people living in developing countries.

2. Diet and eating habits: Most individual persons living in developing countries do not
afford the enough balance diet due to poverty caused by low income.

3. Rate of income: Most individual person living developing countries have low income

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due to the use of poor productive tools while in developed countries people are
characterized by having enough income due to the use of advanced tools in production.

4. The productive tools: In a developed countries people are normally use better tools
like tractors, combined harvesters in agriculture due to the advancement of science and
technology while in poor countries people use poor production tools.

5. Living environment: most people in developed are living in a better and safe
environment while in a developing countries people are living in poor houses and
polluted environment.

6. Energy consumption: in a developed country people their major source of energy are
such as biogas, electricity, coal fuel while in poor economic developed countries people
their major source of power is fuel wood like charcoal.

B. NATIONAL DEVELOPMENT

National development: This refers to the measuring of living condition for all people in
the country.

DIMENSION/ASPECTS OF DEVELOPMENT

i. Economic development.

ii. Social development.

iii. Political development.

iv. Cultural development.

v. Technological development.

vi. Environmental development.

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1. Economic development: This refers to the economic growth which is measured by
Gross Domestic Product (GDP) and per capita income. It normally involves how people
how people, society or country how produce goods and services in the country for better
quantity and quality for consumption. Therefore under this sense the did veloped
country has high per capita income, high rate of investment, advanced technology, high
manufacturing industry and high production of goods and services.

2. Social development: is the process of improving the quality of life and welbing of
every individual in the in order to fulfill their potentials. The most notably indicators of
social development include quality food, education, health services, housing, clean and
safe water supply, population growth, and life expectancy.

3. Political development: Refers to the improvement in decision making structure and

process of citizen engagement in governance as well as effective functioning of
political institutions. It normally imply total democracy where people can have freedom
of movement, freedom of expression and right to own properties.

4. Cultural development: This refers to the constant improvement of peoples attitudes,

values knowledge and belief systems of a society. It normally referred to total life styles
followed and practiced by people in a given community. Under this context the changing
of people from negative cultural practices (lifestyles) which can hinder development to
the positive cultural practices which encourage development indicate progress.
Example of cultural practices which hinder development include: cultural practices
which limit education, prohibiting hospital services, limiting person from businesses,
prohibiting a person from eating some foods, cultural practices that undermine women
rights.

5. Technological development: This refers to the measure of tools used in production

processes in the given society. Normally the use of advance technological tools like
refrigerator, computer tractors and other sophisticated tools in production processes
indicated high development while the use of poor tools indicate low development.

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6. Environmental development: This is another dimension of development which focus
on the utilization of natural resources like mineral, forest resources, water resources for
the sustainable development. Therefore sustainable use of resources indicate high
development but unsustainable use of resources indicate poor development.

A. ECONOMIC DEVELOPMENT

Economic development: Refers to the economic improvement or growth from the

lower stage to high stage. Normally economic development can be manifested from
various economic sectors like agricultural, industrial production, improvement of
infrastructudevelopmen and so on.

INDICATORS OF ECONOMIC DEVELOPMENT

Qn: Analyse six measures of national development.

The economic and social development of any country can be measured by the following
indicators:-

1. Per capita income: This is the average income of the given country obtained by
dividing the total annual income of the country obtained in the year by the number of
people of that country. Usually per capita income varies from developed countries to the
developing countries. In the developed countries their per capita income is higher than
in developing countries.

2. Life expectancy: refers to the everage number of years in which a person is expected
to live before die. Usually in developed countries people live for many years compared
to the life span in developing countries this is due to problems like poor diet, poor health
services, lack of security and presence of disease. E .g 1980’s the life expectancy of
Tanzanians was above 60years while in UK it was above 90years.

3. Daily food supply: The amount of food supply is measured in quantities used by a
person per year and the number of meals which a person used to get daily. Usually in
developed countries people use a lot of calories and get free food or free meals per day

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but in developing countries people obtain a little calories and get just one meal per day
this is because in developing countries the supply of food is not sufficient

4. Mortality rate: This refers to the risk of possibilities of death of people in a given
country. Usually in developing countries like Tz the mortality rate is higher compared to
developed countries like Britain, Japan and USA. In developing countries the mortality
rate is higher because of poor housing services and presence of diseases. Therefore if
mortality rate is low the life expectance increases and vice versa

5. Crude death rates: This refers to the number of children who died before the age of 5
years. In developing countries usually crude death rate is higher compared to
developing countries this is due to poor reproductive health services lack of family
planning education and poor mortality health services

6. Literacy rate: Is the ability of a person to be able to read , write and count, therefore
literacy rate refers to the number of people who are able to read write and count in the
country. In developing countries literacy rate is low while in developed countries literacy
rate is higher. E .g. Tanzania’s literacy rate is low because many children do not go to
school the number of schools are not enough and many people cannot offered the
expenses of education as a result the number of illiterate people is increasing.

7. Energy consumption: The amount of energy used in a country such as electricity fuel,
coal and other sources of power depend on the level of development reached by the
country. The consumption of energy in developed countries is higher compared to
developing countries which is due to the development of the industrial sector science
and technology and improvement of living standard.

INDICATORS OF DEVELOPING COUNTRIES

Qn: In six points characterize the silent features of developed countries.

Normally the world is divided in to developed and developing countries. Tanzania is

among of the developing countries. However the developing countries has
distinguished characteristics from the developed countries which are:-

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1. Low per capita income: This is the average income of the given country obtained by
dividing the total annual income of the country obtained in the year by the number of
people of that country. Usually most developing countries are featured by low per capita
income due to low investment in social and economic sectors.

2. Existence of high level of poverty: The most people living in developing countries are
dominated by poverty hence most people live below the poverty line where people lack
the basic needs like clothing, foods, shelters and health services. According to world
bank (WB) people under the developing countries use under 1.90 US dollars.

3. Excessive dependency in agriculture: Most developing countries the main economic

sector is agriculture. About 97% of population in developing countries are peasant
hence they use poor traditional methods of agriculture and can therefore the sector is
not well developed due to the use of poor technology.

4. Under utilization of natural resources: Most developing countries are featured by the
presence of many natural resources like mineral, water resources, Forest resources but
there is the problems of poor utilization due to the presence of low technology.

5. Existence of high trade deficit: Most developing countries are featured by

importation much of manufactured goods rather than export of commodities due to low
production.

6. Rapid population growth: The developing countries are featured by unsustainable

population growth where there is the problem of high birth rate. The world demographic
survivey proved that that population in developing countries growth rapidly than the
income.

FACTORS INFLUENCING ECONOMIC AND SOCIAL DEVELOPMENT

Qn: Critically elaborate six necessary factors to be considered for economoc

development.

QN: By giving six points explain why some countries develop faster than others.

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QN: Elaborate six determinants of economic development.

The economic and social development will take place if the following vectors will be
available:-

1. Land: This is the basic/ fundermental factor for economic development in the country
or society. It is the basic factor because nearly all social and economic activities are
taking place on the land surface, these are such as agriculture, pastoralist, mining,
lumbering, transport and communication plus settlements. Therefore without land or
resources, the economic and social development cannot take place.

The role of land on economic development

Qn: How land promote economic development? Five (5) points.

i. It generate capital.

ii. It encourage establishment of agriculture.

iii. It provide varieties of raw materials like minerals, sand, etc.

iv. It provide chance for location of industries.

v. It support the construction of infrastructure.

vi. It provide landforms which attract tourists.

vii. It provide employment opportunities to people.

2. Labour force: This is the ability and skills which people need to have in order to be
used in the production of goods and services, there are three basic sources of labour
force such as Human labour force Which is the basic source of labour and is divided
into skilled labour, semi- skilled labour and un skilled labour, Animal labour and
Machine labour.

Note : Human labour, is the basic source of labour which is also used to drive other
types of kabour.

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3. Capital: This is the money or anything worth which can be invested in business,
capital is very important factor for a business to start/ take place because it is used to
buy equipment pay workers, and to meet other expenses of the business. There are
different types of capital such as material capital, money capital and human resources
capital therefore if capital is reliable it facilitates the establishment and development of
different projects.

The role of capital in economic development

i. It helps in paying labourers.

ii. It helps in buying raw materials and equipments.

iii. It helps in improving technology.

iv. It helps in maintainance of infrastructures.

v. It helps in provision of social services.

4. Raw materials: These are substances in natural form or unprocessed, examples

crops, minerals animal product timber, logs and poles. Raw materials are needed in
order to enable production of goods and services to take place. Also raw materials are
very important for the development of industrial sector. Example cotton, coffee, sisal,
minerals, animal skins, milk, meat, timber, etc.

5. Entrepreneurs: These are people who are ready to start production venture or an
enterprise by using their money and skills in production of goods and services. They are
risk takers because the production venture cannot guarantee them to have profit,
therefore more enterprises in the country means more employment opportunities and
reliable source of income.

6. Tools and equipment: These are working instruments which enable a person to
engage on production process effectively. There are several types of working
instruments such as agriculture tools, mining tools, transport facilities, fishing tools and
industrial equipments. The use of modern and better working tools increases the

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efficiency and productivity of goods and services and improving the quality of goods
and services.

7. Good infrastructure: These are the means of transport, communication, storage,

facilities and institution which facilitates the movement of goods and services, money
and people from one place to another. The availability of good infrastructure such as
roads, railways, air ways, water ways banks and ware housing improve the economic
and social development in a given country.

8. Presence of good government : The government must work hand in hand with the
help of the people to ensure the existence of the economic and social development in
the country. Usually the good government is responsible to create a conducive
environment and good policy in order to motivate local investors and to attract foreign
investors in the country. Also a good government is responsible to create political
stability and security of people and their properties in the country.

9. Science and technology: This refers to the use of modern and sophisticated
machines in various production process, usually the use of modern science and
technology in production process simplify the working process, increase efficiency and
improve productivity. Therefore the level of science and technology which is applied in a
given country determines the rate of economic and social development

10. Education: is very important tool in facilitating the economic and social
development because education enable people to change their negative ideologies on
development.

THE ROLE OF THE GOVERNMENT TO THE ECONOMIC DEVELOPMENT

Qn: Elaborate six (6) contributions of government towards the economic development
to the respective country like Tanzania.

Normally the Tanzanian government play very great role to the economic development
through the following ways:-

i. Provision of soft loans

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ii. Improving science and technology.

iii. Construction of infrastructures.

iv. Findings reliable markets both internal and external markets.

v. Formulating good economic policies.

vi. Provision of social services.

vii. Providing good working tools.

THE STRATEGY/ MODELS OF DEVELOPMENT

1. Capitalist economic strategy/market-led economy: This mode was developed by

some economists like David Recardo and Adam Smith who support much free market
economy where the production has to be determined by the demand and supply of the
markets. This mode emphasis that the government should focus much on investment
of enough capita, allowing much external investment and deducting trade barriers in the
markets.

2. Socialist economic strategy: This is the model of development which was developed
by Marxists like Karl Marx, Frederick Engels and Vladimir I. Lenin. This mode was
developed by the 20 century in different parts of the world particularly in Russian, Cuba,
Northern Korea, China. However by the 1960's most African countries started to adopt
this form of development.

3. Mixed economy strategy: This model comprises the balance between capitalist
model or market-led economy and the socialist model. In this model the private sectors
and the markets play important role on promoting the development but the major
means of production are under the control of the government. However this the most
applicable model of development.

4. Developmental state strategy: This is the form of developmental model where the
government articulate economy on every stage manner by maximizing investment of
both foreign and domestic, technological development, human resources development,

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finance and redistribution. This model of development need well committed leaders
who can bring rapid development through improvising infrastructure, markets,
technology and regulating markets.

5. Poverty reduction (Growth and reduction of poverty) model: This is the model of
development which emphasis poverty reduction through growth and redistribution. The
model focus on promoting development through reducing poverty through improving
education, infrastructure, technology and investment of enough capital.

PROBLEMS HINDERING ECONOMIC DEVELOPMENT IN TANZANIA

Qn: Explain in six points the handicaps limiting the economic improvement in
Tanzania.

1. Low level of science and technology: This limit production efficiency in different
productive sectors.

2. Poor transport and communication systems: Poor infrastructure limit and

discourage the level of both internal and external investment.

3 Low level of capital: This limit the level of investment and running different activities
in a effective way.

4. Low level of education: This problem hinder creativity in different economic sectors.

5. Poor economic policies: The economic policies are not stables interns of
implementation. Most economic policies remain theoretical only.

6. Shortage of experts: There is the the problem of lack of enough experts to the
respective economic sectors like in mining, agriculture, tourism, transportation and
industrial policies.

7. Climate vagaries: This has negative impacts to some economic sectors like
agriculture.

8. Unsustainable population growth: High birth rate increase dependency ratio.

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9. Eruptions of diseases: These include covid 19, Ebola, Dengue, Malaria, Chorela,
HIV/AIDS.

10. Natural calamities: These include floods, droughts and earthquakes. Example the
earthquake of 2015 which affected Kagera interns of public asset.

11. Poor utilization of resources: Natural resources in Tanzania like minerals, forests
and water resources are not utilized in a sustainable way.

12. Poor leadership: There is the problem of existence of corrupt leaders who work for
their interest than national benefits, hence this cause low economic development.

WAYS OF IMPROVING ECONOMIC DEVELOPMENT

Qn: Propose six ways to be considered in order to promote economic development.

1. To invest enough capital.

2. To improve science and technology.

3. To improve transport and communication systems.

4. To ensures good leadership.

5. To provide relevant education to the societies.

6. To ensures good utilization of resources.

7. To formulate good economic policies.

8. To ensure availability of enough working tools.

NICE STUDY

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