The document discusses the relationship between economic growth and economic development. It defines development as a dynamic and progressive process, while defining growth as the result of development. It outlines several factors that influence development, including reducing poverty, unemployment, illiteracy, and inequality. Economic development aims to improve living standards and expand economic and social choices. Key elements that drive development are human resources, natural resources, capital formation, and technological innovation.

1. National Bookstore Publishing 2010National Bookstore Publishing 2010
ECONOMICECONOMIC
DEVELOPMENTDEVELOPMENT
IntroductionIntroduction

2. Economic Growth and EconomicEconomic Growth and Economic
Development: which comes first?Development: which comes first?
 DevelopmentDevelopment – it is a dynamic and– it is a dynamic and
progressive processprogressive process
 GrowthGrowth – it is the result of the– it is the result of the
process or the product ofprocess or the product of
development.development.
ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT

3. -is a process by which the population of a-is a process by which the population of a
country improves it efficiency to getcountry improves it efficiency to get
necessary goods and services for itself andnecessary goods and services for itself and
thereby improves individual standard ofthereby improves individual standard of
living levels and economic welfare.living levels and economic welfare.
ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT

4. Economic Development is a dynamic and progressive process ofEconomic Development is a dynamic and progressive process of
improving human conditions like:improving human conditions like:
Reduction/elimination ofReduction/elimination of povertypoverty
Reduction/elimination ofReduction/elimination of unemploymentunemployment
Reduction/elimination ofReduction/elimination of illiteracyilliteracy
Reduction/elimination ofReduction/elimination of inequalityinequality
Reduction/elimination ofReduction/elimination of diseasesdiseases
It also Involve:It also Involve:
Economic Factors:Economic Factors: Capital, technology, marketCapital, technology, market
Non – Economic Factors:Non – Economic Factors: Culture, religion, government, educationCulture, religion, government, education
ECONOMIC GROWTH & DEVELOPMENTECONOMIC GROWTH & DEVELOPMENT

5. Three Core Values of DevelopmentThree Core Values of Development
1.1.Sustenance: The ability to meet basic needs.Sustenance: The ability to meet basic needs.
2.2.Self-Esteem: To be a person.Self-Esteem: To be a person.
3.3.Freedom from Servitude: To be able toFreedom from Servitude: To be able to
choose.choose.
ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT

6. Three objectives of development:Three objectives of development:
1.1.To increase the availability and widen theTo increase the availability and widen the
distribution of basic life-sustaining goods.distribution of basic life-sustaining goods.
2.2.To raise levels of living.To raise levels of living.
3.3.To expand the range of economic and socialTo expand the range of economic and social
choices.choices.
ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT

7. Obstacles to DevelopmentObstacles to Development
1.1.Capital deficiencyCapital deficiency
2.2.Unskilled manpower or lack of managerial skillsUnskilled manpower or lack of managerial skills
3.3.Over populationOver population
4.4.Man himself is the greatest obstacle toMan himself is the greatest obstacle to
developmentdevelopment
ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT

8. The Four Elements in DevelopmentThe Four Elements in Development
-Human resources-Human resources
-Natural resources-Natural resources
-Capital formation-Capital formation
-Technological change and Innovations-Technological change and Innovations
ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT

9. Economic GrowthEconomic Growth
Economic growth implies increase in gross product or aEconomic growth implies increase in gross product or a
continuous and steady increase in national income.continuous and steady increase in national income.
Economic growth of a community is reflected inEconomic growth of a community is reflected in
people’s high standard of living, better food andpeople’s high standard of living, better food and
housing, improved education and medical facilities andhousing, improved education and medical facilities and
advanced means of transport and communication.advanced means of transport and communication.
ECONOMIC GROWTHECONOMIC GROWTH

10. Modern Economic GrowthModern Economic Growth
It refers to the economic growth of the presently advanced countries.It refers to the economic growth of the presently advanced countries.
The features of this economic growth can be summarized by the following:The features of this economic growth can be summarized by the following:
Sustained increase in output per headSustained increase in output per head
Sustained technological progressSustained technological progress
Balance population growthBalance population growth
Sustained capital accumulationSustained capital accumulation
Rising wagesRising wages
High rates of change of economic structureHigh rates of change of economic structure
Transformation of social and other sectionTransformation of social and other section
ECONOMIC GROWTHECONOMIC GROWTH

11. Measurement of Economic GrowthMeasurement of Economic Growth
The measurement of the Gross National ProductThe measurement of the Gross National Product
The measurement of the Gross Domestic ProductThe measurement of the Gross Domestic Product
Per capita IncomePer capita Income
ECONOMIC GROWTH & DEVELOPMENTECONOMIC GROWTH & DEVELOPMENT

12. ECONOMIC GROWTH & DEVELOPMENTECONOMIC GROWTH & DEVELOPMENT
Colin Clark Growth ConceptColin Clark Growth Concept
StageStage 11
AgriculturalAgricultural DevelopmentDevelopment
Where agriculture is the principal source of employmentWhere agriculture is the principal source of employment
and incomeand income
StageStage 22
ManufacturingManufacturing Industry DevelopmentIndustry Development
Industries become the major economic activityIndustries become the major economic activity
StageStage 33
Service IndustryService Industry DevelopmentDevelopment
Service industry grow to be the dominant feature of theService industry grow to be the dominant feature of the
economyeconomy

13. Country’s Classifications according to statusCountry’s Classifications according to status
The First World (Highly Developed)The First World (Highly Developed)
It comprises the highly economically advanced, industrial countries, like theIt comprises the highly economically advanced, industrial countries, like the
United States, Western Europe, Japan and Australia etc.United States, Western Europe, Japan and Australia etc.
The Second World (Developed)The Second World (Developed)
It is the group of countries which are practicing the economic system ofIt is the group of countries which are practicing the economic system of
communism and which are also economically advanced. These countriescommunism and which are also economically advanced. These countries
are characterized largely by having “centrally planned economies.” In suchare characterized largely by having “centrally planned economies.” In such
groups are included the Soviet Union and the Eastern European Countriesgroups are included the Soviet Union and the Eastern European Countries
like Czechoslovakia, Poland and East Germany.like Czechoslovakia, Poland and East Germany.
The Third World (Less-Developed)The Third World (Less-Developed)
Countries grouped as the third world include all of those often described asCountries grouped as the third world include all of those often described as
the developing countries. They are poor, and although many of them arethe developing countries. They are poor, and although many of them are
improving their material welfare, their income levels are very low comparedimproving their material welfare, their income levels are very low compared
to those of the richer countries.to those of the richer countries.
ECONOMIC GROWTH & DEVELOPMENTECONOMIC GROWTH & DEVELOPMENT

14. End of Discussion
ECONOMIC GROWTH & DEVELOPMENTECONOMIC GROWTH & DEVELOPMENT
Website:Website:
www.principlesofeconomics.netwww.principlesofeconomics.net

15. Based on your personal observation, make a
short discussion of the current status of the
Philippine economy:
Guidelines:
 Government system and its performance
 Various social unrest and crimes
 Environmental status
SEATWORKSEATWORK