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Chapter 1

The document provides an overview of economic development, defining it as a multidimensional process aimed at improving the well-being of individuals through structural transformations and equitable wealth distribution. It discusses core values of development, methods for measuring progress, and the importance of sustainable development. Additionally, it highlights key research problems and characteristics of developing countries, emphasizing the role of institutions and the distinction between economic growth and development.

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25 views

Chapter 1

The document provides an overview of economic development, defining it as a multidimensional process aimed at improving the well-being of individuals through structural transformations and equitable wealth distribution. It discusses core values of development, methods for measuring progress, and the importance of sustainable development. Additionally, it highlights key research problems and characteristics of developing countries, emphasizing the role of institutions and the distinction between economic growth and development.

Uploaded by

kimwoo1920
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Introduction

Economic development

Economics and Development


studies
1.1. Definition of Economic Development:
• Schaffner (2013): Economic development refers to the process through which an
economy improves the economic, political, and social well-being of its people. It
involves structural transformations, improvements in productivity, and changes in
social institutions.
• Perkins et al. (2013): Economic development is the sustained, concerted
(collaborated) effort of policymakers and the community to promote the standard of
living and economic health in a specific area. It includes job creation, economic growth,
and equitable distribution of wealth.
• Todaro and Smith (2020): Economic development is a multidimensional process
involving major changes in social structures, popular attitudes, and national institutions,
as well as the acceleration of economic growth, the reduction of inequality, and the
eradication of absolute poverty.
Sustained
The improvements
Production Equitable in health,
acceleration
structural distribution education and
of economic
transformation of wealth other aspects
growth of human
welfare
1.2. Core values of development

Sustenance Self-esteem
is the ability to meet is a sense of worth and
basic needs self-respect

Freedom
to choose among different life
paths
1.3. Measuring economic development
Perkins et al. (2013): Discusses
Schaffner (2013): Emphasizes using
composite(mixed or multiple) indices such
a range of indicators including GDP
as the Human Development Index (HDI)
per capita, literacy rates, and life
which combines income, education, and
expectancy to measure development health indicators

Todaro and Smith (2020): Highlights the use of both quantitative


indicators (like income per capita and poverty rates) and qualitative
measures (like political freedom and environmental sustainability)

Generally, Human development is a process of enlarging


people’s choices.
1.4. Development and Well-being
• Schaffner (2013): • Perkins et al. • Todaro and Smith
Connects (2013): Discusses (2020): Argues that true
development with well-being as a broad development is about
overall well-being, concept improving people's well-
including economic encompassing being, measured
security, education, economic, social, and through a broader
health, and social psychological perspective than just
inclusion dimensions. economic metrics
(data).
1.5. Sustainable Development
Schaffner (2013): Focuses on development that meets the needs of
• the present without compromising (trading off) the ability of future
generations to meet their own needs.

Perkins et al. (2013): Emphasizes the importance of environmental


• sustainability and the need to integrate environmental concerns into
economic planning.

Todaro and Smith (2020): Highlights sustainable development as a


• goal that integrates economic growth with environmental
stewardship (management) and social equity.
17 Sustainable development Goals
2. Economics and Development Studies
2.1. The Nature of Economics and Development Economics

Economics is the study Based on the assumption of an imperfect competition market,


of scarcity, the study of Schaffner (2013): Development economics focuses on improving
how people use
resources and respond fiscal, economic, and social conditions in developing countries
to incentives, or the through theoretical and empirical research.
study of decision-
making. Perkins et al. (2013): Examines the economic aspects of the
It often involves topics
like wealth and finance,
development process, including growth, structural change,
but it’s not all about and the distribution of income.
money.
The assumption: based Todaro and Smith (2020): Describes development economics as a
on the perfect branch of economics that deals with the economic aspects of the
competition market.
development process in low-income countries.
2.2. Research Problems in Development Economics:
• Schaffner (2013): Identifies key research problems such
as poverty, inequality, health, education, and governance.
• Perkins et al. (2013): Focuses on issues like economic
growth, income distribution, and the role of government
policy in development.
• Todaro and Smith (2020): Discusses major research
topics including poverty alleviation, economic growth
strategies, and sustainable development.
2.3. Characteristics of the Developing World:
• Schaffner (2013): Highlights characteristics such as low
income levels, high population growth, and economic
vulnerability.
• Perkins et al. (2013): Discusses features like structural
diversity, cultural heterogeneity (diversity), and varying
levels of development.
• Todaro and Smith (2020): Lists common
characteristics including widespread poverty, high
dependency ratios, and economic dualism.
Discussion Questions:
1. Discuss the role of institutions in economic
development according to Perkins et al. What types of
institutions are critical?
2. How do Todaro & Smith differentiate between
economic growth and economic development? What
are the implications for policy-making?
3. How does Schaffner define economic development,
and what are the key theories associated with it?

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