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ECONOMIC Development Week 1

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18 views11 pages

ECONOMIC Development Week 1

Handouts

Uploaded by

christinadado28
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ECONOMIC

DEVELOPMENT

ECO 002
Mark Eric Ruiz, MBA
OVERVIEW

Economic Development is the process by which emerging


economies become advanced economies.
OVERVIEW

Development economics is a field of economics that


examines economic development.
Economic development is a comprehensive concept that goes beyond
mere economic growth, encompassing qualitative improvements in the
standard of living, poverty reduction, and equitable distribution of
wealth. Unlike economic growth, which is primarily measured by
increases in GDP, economic development involves multi-dimensional
progress across various aspects of human life, including education,
health, and social welfare. Economic development is an interdisciplinary
field that integrates insights from economics, sociology, political science,
and environmental studies to create a holistic understanding of a
nation’s progress.
DIFFERENCES BETWEEN
ECONOMIC GROWTH AND
ECONOMIC DEVELOPMENT
DIFFERENCES BETWEEN ECONOMIC
GROWTH AND ECONOMIC DEVELOPMENT

ECONOMIC GROWTH
Expand GDP
DIFFERENCES BETWEEN ECONOMIC
GROWTH AND ECONOMIC DEVELOPMENT
ECONOMIC DEVELOPMENT
Average life expectancy, i.e., how long people people’s lifespans are.
Education standards.
Literacy rates, i.e., what percentage of the population can read.
Environmental standards.
Availability of housing, plus the quality of housing.
Access to healthcare. This takes into account the number of doctors per
thousand people, access to affordable medicine, etc.
Income per capita.
“Economic development is about creating freedom for
people and removing obstacles to greater freedom.
Greater freedom enables people to choose their own
destiny.”

“Obstacles to freedom, and hence to development,


include poverty, lack of economic opportunities,
corruption, poor governance, lack of education and lack
of health.”

Amartya Kumar Sen


Indian economist and philosopher,
Nobel Memorial Prize in Economic Sciences Awardee
For all purpose

KEY INDICATORS
OF DEVELOPMENT
Gross Domestic Product (GDP):

Measures the total value of goods and services produced


but does not reflect income distribution or quality of life.

Human Development Index (HDI):

A composite measure of life expectancy, education, and


per capita income, providing a more comprehensive view of
development.

GINI Coefficient:

Assesses income inequality, ranging from 0 (perfect


equality) to 1 (maximum inequality).
Multidimensional Poverty Index (MPI):

Captures deprivations in health, education, and standard of living.

Genuine Progress Indicator (GPI)

Seeks to take a more accurate account of a nation’s well being than


just GDP (gross domestic product). GPI starts with GDP as its base but
also takes into account environmental and social factors such as:
1.Pollution
2.Poverty rates
3.Health standards
4.Inequality rates
5.Crime rates
6.Cost of pollution abatement
7.Cost of commuting
8.Cost of road accidents
9.Value of education
10. Value of housework and parenting

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