modern economic growth

1. Modern Economic Growth
Dr. Pragati Krishnan
Assistant Professor (Guest)
School of Studies in Economics
Pt. Ravishankar Shukla University
Raipur, Chhattisgarh
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2. Concept given by :
• American Economist
• Statistician
• Nobel Prize in 1971
• Quantitative Economic Theory
• Book ; Modern Economic Growth:
Rate, Structure, and Spread
Simon Smith Kuznets
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3. Meaning : The development of the
developed countries of western Europe,
USA, Canada, Australia and Japan.
पश्चिमी यूरोप, अमेररका, कनाडा, ऑस्ट्रेलिया
और जापान क
े विकलित देशों का विकाि।
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4. Economic Growth , “ as along term rise in capacity to supply
increasingly diverse economic goods to its population, this
growing capacity is based on advancing technology and the
institutional and ideological adjustments that it demands.”
आर्थिक वृद्र्ि क
े साथ-साथ अपनी आबादी को तेजी से ववववि
आर्थिक वस्तुओं की आपूर्ति करने की क्षमता में वृद्र्ि होती है, यह
बढ़ती क्षमता उन्नत प्रौद्योर्िकी और संस्थाित और वैचाररक
समायोजन पर आिाररत है जजसकी वह मांि करती है।
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5. Characteristics of Modern Economic Growth
• High rate of growth of per capita production and population.
çfr O;fä mRiknu ,oa tula[;k dh mPp o`f) njA
• The rise in productivity. mRikndrk esa o`f)-
• High rate of structural transformation. lajpukRed ifjorZu dh mPp nj-
• Urbanization. 'kgjhdj.k-
• The outward expansion of developed countries. fodflr ns'kksa dk cká foLrkj-
• International flow of men, goods and capital. euq";ksa] oLrqvksa vkSj iwath dk varjkZ"Vªh;
çokgA
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6. Various Growth and Development Models
• Growth models :
• Development models :
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7. • Savings , Investment & Capital Formation
• Human Resources ( Human Capital Formation) &
Economic Growth
Domestic Measures for Economic Development
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8. Savings , Investment & Capital Formation
• Saving = Y-C
• Investment
• Capital formation
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9. Importance of Capital Formation
• Increase in national income. jk"Vªh; vk; esa o`f)-
• Increase in production. mRiknu esa o`f)-
• Market expansion. cktkj foLrkjA
• Helpful in economic development. vkfFkZd fodkl esa lgk;d-
• Increase in economic welfare. vkfFkZd dY;k.k esa o`f)
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10. Stages of Capital Formation
• Formation of savings. cpr dk xBu
• Mobilization of savings. cpr dk laxzg.k
• Investment. fuos'k
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11. Human Resources (Human Capital Formation) &
Economic Growth
Theodore William Schultz
➢ American Agricultural Economist.
➢ Chicago School of Economics.
➢ Human Capital Theory.
➢ Nobel Prize in 1979 along with Sir William Arthur Lewis for his
work in development economics, focusing on the economics of
agriculture. He analyzed the role of agriculture within the economy,
and his work has had far reaching implications for industrialization
policy, both in developing and developed nations.
➢ Schultz also promulgated the idea of educational capital, an offshoot
of the concept of human capital, relating specifically to the
investments made in education.
➢ Schultz, Theodore W. (1961). "Investment in Human Capital". The
American Economic Review. 51 (1): 1–17. JSTOR 1818907.
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12. • Health facilities and services : all exp. That affect the life expectancy strength and
stamina and the vigor and vitality of the people. LokLF; lqfo/kk,¡ ,oa lsok,¡ A ;g yksxksa dh
thou çR;k'kk] rkdr vkSj lgu'kfä vkSj tks'k vkSj thou 'kfä dks çHkkfor djrk gSA
• On the job training : old type apprenticeships organized by firms. ukSdjh ij çf'k{k.kA QeksaZ
}kjk vk;ksftr iqjkus çdkj dh çf'k{kqrkA
• Formally organized education at the elementary , secondary and higher levels. çkjafHkd]
ek/;fed vkSj mPp Lrj ij vkSipkfjd :i ls laxfBr f'k{kkA
5 ways of Developing Human Capital
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13. • Study progress for adults that are not organized by firms, including extension programs
specially in agriculture. o;Ldksa ds fy, çxfr dk v/;;u djsa tks QeksaZ }kjk vk;ksftr ugha gSa]
ftlesa fo'ks"k :i ls —f"k esa foLrkj dk;ZØe 'kkfey gSaA
• Migration of individuals and families to adjust to changing job opportunities. ukSdjh ds
cnyrs voljksa ds lkFk rkyesy fcBkus ds fy, O;fä;ksa vkSj ifjokjksa dk çoklA
Import of technical assistance, expertise and consultants. rduhdh lgk;rk] fo'ks"kKrk vkSj
lykgdkjksa dk vk;krA
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14. Wider sense . O;kid Hkko :
Expenditure on health, education and social services. LokLF;] f'k{kk vkSj lkekftd lsokvksa
ij O;;A
Narrow sense ladh.kZ Hkko :
Expenditure on education and training. f'k{kk ,oa çf'k{k.k ij O;;A
F. H. Harbison and C.A, Meyers ,Q- ,p- gkfcZlu vkSj lh-,-] es;lZ
Human capital formation is the process of increasing knowledge, the skills and the capacities
of all people of the country.
ekuo iwath fuekZ.k ns'k ds lHkh yksxksa ds Kku] dkS'ky vkSj {kerkvksa dks c<+kus dh çfØ;k
gSA Dr. Pragati Krishnan 14

15. Schultz, Harbison, Denison, Kendrick, Abramovitz ,Becker ,Bowman
,Kuznets : rapid growth of the American economy has been the relatively
increasing outlays on education.
A dollar invested on education brings a greater increase in national income
than a dollar spent on dams, roads, factories or other tangible capital goods.
'kqYV~t] gkfcZlu] Msfulu] dsafMªd] vczkeksfoV~t] csdj] ckseu] dqtusV~l vesfjdh vFkZO;oLFkk dh rhoz
o`f) f'k{kk ij vis{kk—r c<+rs ifjO;; ds dkj.k gqbZ gSA
f'k{kk ij fuos'k fd;k x;k ,d M‚yj cka/kksa] lM+dksa] dkj[kkuksa ;k vU; ewrZ iwathxr oLrqvksa ij [kpZ
fd, x, ,d M‚yj dh rqyuk esa jk"Vªh; vk; esa vf/kd o`f) ykrk gSA
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16. • Human resources ;the working population provides the labour force required for the
exploitation of natural resources. They will remain under utilized or unutilized unless there
are human resources to exploit them.
ekuo lalk/ku; dk;Z'khy tula[;k çk—frd lalk/kuksa ds nksgu ds fy, vko';d Je 'kfä çnku
djrh gSA tc rd muds nksgu ds fy, ekuo lalk/ku miyC/k ugha gksaxs rc rd mudk mi;ksx
de ;k vç;qä gh jgsxkA
• Human beings assist capital formation through their savings and high capital formation is
an important requirement for the economic development of a country.
euq"; viuh cpr ds ek/;e ls iwath fuekZ.k esa lgk;rk djrk gS vkSj fdlh ns'k ds vkfFkZd fodkl
ds fy, mPp iwath fuekZ.k ,d egRoiw.kZ vko';drk gSA
Significance of Human Resources
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17. • Human beings are not only the suppliers of labor and capital required for
production but are also the consumers of the goods produced. As such they
provide the ,markets for the various products produced in the country.
euq"; u dsoy mRiknu ds fy, vko';d Je vkSj iwath ds vkiwfrZdrkZ gSa cfYd
mRikfnr oLrqvksa ds miHkksäk Hkh gSaA bl çdkj os ns'k esa mRikfnr fofHkUu mRiknksa ds
fy, cktkj miyC/k djkrs gSaA
• They are also military assets, they are useful for the defense of the country.
;s lSU; laifÙk Hkh gSa] ns'k dh j{kk ds fy, Hkh mi;ksxh gSaA
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18. Utilization of Human Resources in Economic Development
• Prof. Ragnar Nurkse.
• Prof. W.A.Lewis.
• Prof. Havery Leibenstein.
• Prof. P.C. Mahalnobis.
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19. Role of Human Capital in Economic Development
❖Increase output. mRikn esa o`f)
❖Adds to productive capacity. mRiknd {kerk esa o`f) gksrh gS
❖Tool for economic change. vkfFkZd ifjorZu dk lk/ku
❖Improves quality of life. thou dh xq.koÙkk esa lq/kkj ykrk gS
❖Rise in per capita income. çfr O;fä vk; esa o`f)-
❖Higher educational attainments. mPp f'k{kk miyfC/k;k¡-
❖Increase in life expectance. thou çR;k'kk esa o`f)-
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20. Thank You!!!
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