The document discusses economic development and the differences between economic growth and development. It defines development as sustained increases in production accompanied by changes in economic structure and efficiency. It also discusses key indicators and characteristics of developing countries, including the need for structural changes in the economy like shifting workers from agriculture to industry. The goal of development is to increase real income and provide more goods and opportunities to improve people's welfare, with innovation and investments in infrastructure and technology playing important roles. The Philippines has seen increases in GDP, investment, and exports in recent years, showing signs of economic development.

1. The Dynamics of
Development

2. Development is a Sustained Effort

3. What is Economic Development?
With the construction
activities going on around us, we
cannot help but think that the
country is making great strides
towards economic growth and
development.

4. Indicators of Economic Growth and
Development
 Factories being built outside Metro Manila.
 Nipa houses are being changed into modest
concrete houses.
 Television antennas that uses to be
nonexistent before.
 Infant mortality has gone down
 Farmers used to harvest 25 canvas are now
harvesting 70 – 90 canvas

5. Distinction between
GROWTH and DEVELOPMENT
2.GROWTH 1.DEVELOPMENT
- Economic Development
- Growth means means both more output or
increase in output or production and changes in the
technical and institutional
production. arrangements by which the
factors of production are
produced and distributed.

6. 3-5Economic Development of any nation can
be characterized by the following:
1.Increases in output 2.Changes in economic 3.Growth has to be
or production has to structure would spread accompanied by an
be sustained over a out in the entire increase in
long period of time. economy. efficiency.

7. The Objective of the Development Process:
6.MAN
The provision for the social
overhead capital like roads, bridges,
railroads, airports, communication
system and the provision for more
efficient production process are very
much needed because of the results
and objectives for which they are
built – for the welfare of man.

8. Increase in Real Income
• Increase in real income represents availability of more goods
and opportunities for more people.
• We can see that when the necessary social overhead capital are
provided and better technology and efficiency are worked for,
real income per person increases.

9. The Goal of Development
• With more goods and opportunities provided for more people, the higher will
be the level of development of more people.

10. The Human Factor in Economic Development
The development of the socio-
economic welfare of each individual
person is always the primary
objective of any economic plan or
development process.
If man is the object of any
development process, man is also the
central figure in any development
process.

11. Innovation in the Development of Process
7.Innovation
– application of the
stock knowledge to
the process of
production.

12. Innovation in the Development of Process

13. Characteristics of Less Developed
Countries
• Many of the presently developing countries are poorer today
than the presently developed countries at the time they began
developing.
• Most of the people live in rural areas, and a large part of the
national income is generated in agriculture.
• Income is more inequitably distributed in developing countries.

15. Structural changes in the Economy
• 8.Structure of the economy
• Refers to the manner in which the elements or units of the system are related to
one another and to the whole.
• For the development to take place, the structure of the economy has to change,
to change for the better.

16. Structural changes:

17. Sustained Increase in Per Capita Real Income
As we said before, 9.development is
the process by which the per capita real
income increase a sustained basis over a
long period of time.

18. THE PHILIPPINE RECORD
the performance of the Philippine economy

19. The Philippines has been performing quite well compared with
these international standards. The allegation that our economic
growth is “low” cannot be accepted. The com-plaints that the real
income in the Philippines is increasing only at 2% and that the
economy is sluggish because because it is growing only at 5% per
year, is not warranted.
Average Annual Rate

20. Major economic Indicators, Philippines,
1999-2003 (%)
ITEM 1999 2000 2001 2002 2003
GDP 3.4 4.0 3.4 4.0 4.5
Gross domestic investment/GNP 17.8 16.9 16.6 18.0 18.5
Gross national savings/GNP 18.7 21.0 22.1 20.2 19.5
Inflation rate (consumer price index) 6.7 4.4 6.1 5.0 6.0
Money supply (M3) growth 19.3 4.6 6.8 10.0 11.0
Fiscal balance/ GNP -3.6 -3.8 -3.8 -3.2 -3.0
Merchandise export growth 19.1 9.0 -16.2 3.0 6.0
Merchandise import growth 4.2 3.8 -6.2 2.5 4.0
Current account balance 9.2 10.7 6.0 2.0 1.5
Debt servise ratio 13.4 12.7 16.4 15.0 15

21. Sectoral Changes in the
Development Process