The document introduces economic development as a multi-dimensional process aimed at improving the economic, political, and social well-being of people, emphasizing growth, structural transformation, and social equity. Key indicators and values for measuring development include GDP per capita, the human development index, and qualitative measures of well-being. It also discusses the importance of sustainable development and the various research problems faced in the field of development economics.

1. DEVELOPMENT
ECONOMICS

2. CHAPTER
1
Introduction

3. 1
2
Economic development
Economics and Development
studies

4. 1.ECONOMIC
DEVELOPMENT
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
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.

5. GENERALLY, ECONOMIC DEVELOPMENT
INCLUDES:
The
acceleration
of economic
growth
Production
structural
transformatio
n
Equitable
distributio
n of
wealth
Sustained
improvement
s in health,
education and
other aspects
of human
welfare

6. Sustenance
is the ability to meet
basic needs
Freedom
to choose among different life
paths
Self-esteem
is a sense of worth and
self-respect
1.2. Core values of development

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

8. 1.4. Development and Well-being
• Schaffner (2013):
Connects
development with
overall well-being,
including
economic security,
education, health,
and social
inclusion
• Perkins et al.
(2013): Discusses
well-being as a
broad concept
encompassing
economic, social,
and psychological
dimensions.
• Todaro and Smith
(2020): Argues that
true development is
about improving
people's well-being,
measured through a
broader perspective
than just economic
metrics.

9. •
Schaffner (2013): Focuses on development that meets the
needs of the present without compromising 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 and social equity.
1.5. Sustainable Development

10. 17 Sustainable development
Goals

11. •
Schaffner (2013): Development economics focuses on improving
fiscal, economic, and social conditions in developing countries
through theoretical and empirical research.
•
Perkins et al. (2013): Examines the economic aspects of the
development process, including growth, structural change, and
the distribution of income.
•
Todaro and Smith (2020): Describes development economics as a
branch of economics that deals with the economic aspects of the
development process in low-income countries.
2. Economics and Development Studies
2.1. The Nature of Development Economics

12. 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.

13. 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, and
varying levels of development.
• Todaro and Smith (2020): Lists common
characteristics including widespread poverty, high
dependency ratios, and economic dualism.

14. 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?