This document discusses several methods used to measure economic development. It describes common metrics like gross national product (GNP) and per capita income, as well as indexes that account for other factors like quality of life, education, health and gender equality. These include the Physical Quality of Life Index, Human Development Index, Capability Approach, and Gender Related Development Index. No single measure can fully capture a country's economic development, so economists consider multiple criteria to evaluate progress.
Amartya Sen's 1999 book "Development as Freedom" argues that development should be understood as expanding the freedoms and capabilities of individuals. Sen defines freedom as both the processes that allow freedom of actions and decisions, as well as the opportunities available to individuals. True development requires removing major sources of unfreedom like poverty, tyranny, and lack of economic opportunity. Sen discusses five types of instrumental freedoms - political freedoms, economic facilities, social opportunities, transparency guarantees, and protective security - that interact and can strengthen one another in the development process.
Globalization has led to increased interdependence between nations through the free movement of goods, services, capital and labor. Key factors driving globalization include reductions in transportation and communication costs as well as technological advancements. While globalization offers economic opportunities through expanded trade and access to new markets, it also poses challenges such as threats to local industries and concerns over the impacts on cultural identity. International organizations like the WTO, IMF and World Bank facilitate globalization through policies promoting open trade, financial cooperation and development assistance.
Rostow proposed five stages of economic growth for countries: 1) traditional society, 2) preconditions for take-off, 3) take-off, 4) drive to maturity, and 5) age of high mass consumption. The document provides details on the characteristics of each stage, such as low productivity in traditional societies and a rise in investment and savings above 10% during the take-off stage. It also notes some criticisms of Rostow's theory, such as the lack of clear distinction between some stages and that growth is not truly automatic.
Modernization theory posits that countries must undergo scientific and technological advancement to become modernized and increase living standards, with the West's role being to invest in developing countries' factories, education, and media to disseminate modern ideas. It has been criticized for being ethnocentric and for ignoring inequality. Dependency theory argues that the rich world's development was achieved through exploiting the developing world, making them dependent on imports and aid. World systems theory asserts that a global capitalist economy has existed since the 16th century, with some countries forging ahead to form the wealthy core region and the periphery specializing in raw materials.
Sociology work and industry 5th edition slideswaheedaq
The document discusses various theoretical perspectives in the sociology of work, including Durkheim's structural functionalism, Marx's conflict theory, and Weber's interpretivism. It also addresses key topics like bureaucracy, globalization, gender inequality, and occupations. The document takes a sociological approach to defining and analyzing different aspects of work.
Characteristics of underdeveloped economiesGeorgi Mathew
Underdeveloped economies are characterized by low per capita incomes, underutilized resources, inefficient production techniques, and potential for growth. They have incomes of $1025 or less and rely on agriculture, suffering from poverty, unemployment, and low levels of living. Population growth outpaces economic growth, exacerbating unemployment and poverty. Development requires improving infrastructure, education, health, and industrialization to increase productivity and standards of living.
Presentation on Dependency Theory for PS 212 Culture and Politics in the Third World at the University of Kentucky, Summer 2007. Dr. Christopher S. Rice, Instructor.
This document discusses several methods used to measure economic development. It describes common metrics like gross national product (GNP) and per capita income, as well as indexes that account for other factors like quality of life, education, health and gender equality. These include the Physical Quality of Life Index, Human Development Index, Capability Approach, and Gender Related Development Index. No single measure can fully capture a country's economic development, so economists consider multiple criteria to evaluate progress.
Amartya Sen's 1999 book "Development as Freedom" argues that development should be understood as expanding the freedoms and capabilities of individuals. Sen defines freedom as both the processes that allow freedom of actions and decisions, as well as the opportunities available to individuals. True development requires removing major sources of unfreedom like poverty, tyranny, and lack of economic opportunity. Sen discusses five types of instrumental freedoms - political freedoms, economic facilities, social opportunities, transparency guarantees, and protective security - that interact and can strengthen one another in the development process.
Globalization has led to increased interdependence between nations through the free movement of goods, services, capital and labor. Key factors driving globalization include reductions in transportation and communication costs as well as technological advancements. While globalization offers economic opportunities through expanded trade and access to new markets, it also poses challenges such as threats to local industries and concerns over the impacts on cultural identity. International organizations like the WTO, IMF and World Bank facilitate globalization through policies promoting open trade, financial cooperation and development assistance.
Rostow proposed five stages of economic growth for countries: 1) traditional society, 2) preconditions for take-off, 3) take-off, 4) drive to maturity, and 5) age of high mass consumption. The document provides details on the characteristics of each stage, such as low productivity in traditional societies and a rise in investment and savings above 10% during the take-off stage. It also notes some criticisms of Rostow's theory, such as the lack of clear distinction between some stages and that growth is not truly automatic.
Modernization theory posits that countries must undergo scientific and technological advancement to become modernized and increase living standards, with the West's role being to invest in developing countries' factories, education, and media to disseminate modern ideas. It has been criticized for being ethnocentric and for ignoring inequality. Dependency theory argues that the rich world's development was achieved through exploiting the developing world, making them dependent on imports and aid. World systems theory asserts that a global capitalist economy has existed since the 16th century, with some countries forging ahead to form the wealthy core region and the periphery specializing in raw materials.
Sociology work and industry 5th edition slideswaheedaq
The document discusses various theoretical perspectives in the sociology of work, including Durkheim's structural functionalism, Marx's conflict theory, and Weber's interpretivism. It also addresses key topics like bureaucracy, globalization, gender inequality, and occupations. The document takes a sociological approach to defining and analyzing different aspects of work.
Characteristics of underdeveloped economiesGeorgi Mathew
Underdeveloped economies are characterized by low per capita incomes, underutilized resources, inefficient production techniques, and potential for growth. They have incomes of $1025 or less and rely on agriculture, suffering from poverty, unemployment, and low levels of living. Population growth outpaces economic growth, exacerbating unemployment and poverty. Development requires improving infrastructure, education, health, and industrialization to increase productivity and standards of living.
Presentation on Dependency Theory for PS 212 Culture and Politics in the Third World at the University of Kentucky, Summer 2007. Dr. Christopher S. Rice, Instructor.
This document discusses modernization theory, which posits that societies progress through stages from "traditional" to "modern". It is criticized for privileging markers like urbanization, literacy, and industrialization to define modernity. Key questions are raised around who defines modernity and whether all societies truly progress in the same linear way. The theory is also examined in the context of its origins in post-World War 2 United States as a way to promote capitalism over communism and analyze newly decolonized nations. Functionalism, which views society as analogous to a biological organism, is discussed as an influence on modernization theory.
This document summarizes key ideas from two works: Frank's "The Development of Underdevelopment" and Dos Santos' "The Structure of Dependency". Frank argues that modernization theory, which views underdevelopment as a natural phase, is deficient because it ignores how colonialism altered development paths in the Third World. Underdevelopment was intentionally created through exploiting resources and transferring economic surplus to Western nations. Dos Santos identifies three historical forms of dependency - colonial, financial-industrial, technological-industrial - and how they structurally limit industrial development and reproduce inequality in dependent nations under foreign capital's control.
The development gap and how it can be measuredjodiecmills
There are several ways to measure development levels and the gap between developed and developing countries:
1) GDP and GNP per capita are traditional economic measures but don't capture inequalities within countries.
2) Social indicators like health, education, and housing provide a more holistic view of development.
3) Composite indices that combine economic and social factors, such as the Human Development Index, provide a comprehensive overview of development levels.
4) Other indices measure specific issues like the digital divide, gender inequality, and livability between countries. No single measure can fully capture a country's development status.
The document discusses several theories of development, including modernization theory, dependency theory, and world systems theory. Modernization theory views development as a linear process of progressing through stages from traditional to modern societies. It was criticized for being ethnocentric and not accounting for alternative paths. Dependency theory argues underdevelopment is caused by the core-periphery global economic system that benefits wealthy nations at the expense of poorer ones. World systems theory builds on dependency theory by analyzing development at the global level and emphasizing the exploitative relationship between the core and periphery in the capitalist world system. The document provides overviews and criticisms of each theory.
Globalization refers to the increasing integration and interdependence of economies and societies around the world through increased cross-border movement of goods, capital, services, and people. It has led to greater global economic, political, and cultural integration. While it offers opportunities for economic growth and development, it also poses challenges related to increased inequality, urbanization, environmental pressures, and cultural homogenization that require careful planning and policy responses.
This document discusses various indicators used to measure development. It begins by outlining economic, political, social, and subjective indicators. It then categorizes indicators as economic, educational, health-related, composite, and gender-related. Composite indicators like the Human Development Index and Gender Empowerment Index combine individual indicators, while single indicators measure one thing like child mortality. Commonly used indicators include GNP, HDI, and poverty rates. The document also discusses indicators for education, health, and gender inequality.
This document provides an overview of modernization theory. It discusses:
1) The emergence of modernization theory in the late 1940s/1950s as a response to concerns about the spread of communism in developing countries. The theory promoted the adoption of Western capitalist and democratic models of development.
2) Modernization theory viewed developing countries as "traditionally" held back from development due to cultural barriers, and proposed they develop through industrialization and adopting Western values/institutions with assistance from Western countries.
3) Critics argue modernization theory promoted an overly simplistic view that did not account for diversity in development paths or historical/cultural contexts of different societies. The theory was also seen as ethn
The document discusses the topic of modernization. It defines modernization as the process of industrialization, urbanization, and other social changes that transform people's lives. It then covers some key aspects of modernization including social change brought about by new inventions and discoveries, cultural diffusion, characteristics such as the decline of traditional communities and increased bureaucratization. The document also provides a history of modernization, touching on developments in global communication technologies, the roles of industrialization, colonialism, and the spread of ideologies in the modernization process.
This document discusses reducing inequalities as outlined in UN Sustainable Development Goal 10. It notes that while laws may provide for equality, in practice extreme gaps exist between formal rights and actual equality. To address this, a 3-point framework is proposed focusing on resources, respect, and voice. Specific targets and policies are outlined to promote inclusion, equal opportunities, and reduce inequality outcomes through 2030. Barriers to achieving equality are analyzed, including lack of quality data and surveys in some countries.
This document summarizes Thomas Malthus' theory of population growth. It outlines Malthus' key assumptions, including that population grows geometrically while food production grows arithmetically, leading to an imbalance. It also discusses Malthus' ideas around positive and preventive population checks. The document then summarizes several criticisms of Malthus' theory, including that technological advances have allowed food production to keep pace with population growth, and that migration and birth control have disrupted the relationship between population and subsistence assumed by Malthus.
This document provides an overview of dependency theory and its key concepts. It discusses:
- The background and emergence of dependency theory from criticisms of modernization theory by Latin American scholars.
- How dependency theory views unequal relationships between core developed countries and peripheral less developed countries, with exploitation of the latter by the former.
- Mechanisms by which core countries extract surplus from peripheries through trade, investment, aid, and technology transfer.
- Influential analyses by Paul Baran, Andre Gunder Frank and others that sought to explain underdevelopment as a result of relationships with core economies and capitalism.
The document discusses Emile Durkheim's theories of the division of labor and social solidarity. It defines mechanical solidarity as social solidarity in small, traditional societies with little division of labor. Organic solidarity refers to solidarity in modern societies with complex division of labor and interdependence. Durkheim argued that the division of labor increased as societies became more populous and complex, not due to desires for happiness. There are two abnormal forms of division of labor: anomic, which lacks regulation; and forced, as seen in child labor.
This slide deals with basic concepts and theories of Globalization and Development. The role of various international institutions in a development process.
Dependency theory developed in the late 1950s led by Raul Prebisch to explain why economic growth in wealthy nations did not necessarily lead to growth in poorer countries. It argues that poorer nations are dependent on wealthy nations for resources, markets, and obsolete technology, which prevents self-sustaining development. Wealthy nations also actively maintain this state of dependence through economic, political, and cultural means. Dependency theory aimed to explain the persistent underdevelopment and inequality between nations as an intrinsic result of the patterns of interaction and trade within the global economic system.
This theory throws light on changes in birth and death rate and consequently on the growth rate of population. The relationship between birth and death rate changes with economic development and a country has to pass through different stages of population growth. This theory depicts the four stages of demographic transition that a country has to pass.
Urbanization refers to the migration of people from rural to urban areas in search of jobs, opportunities, and improved living conditions for their families. People are pulled to cities by the availability of infrastructure, jobs, education, healthcare and entertainment. They are pushed from rural areas due to lack of these resources and facilities. However, rapid urbanization leads to problems like overcrowding, unemployment, increased crime rates, pollution, and the development of slums. These issues can be addressed by controlling urban population growth and developing rural communities and infrastructure to discourage migration.
The document defines and discusses different aspects of poverty. It defines absolute and relative poverty, with absolute poverty referring to lack of means to meet basic needs and relative poverty considering social and economic status compared to others. It discusses the poverty line as the minimum income level required to afford life's necessities, and how the World Bank adjusted the international poverty line over time. It provides statistics on global and regional poverty rates. For India, it details how the poverty line was originally calculated and varies between states, with some below 10% and others above 40%. It also discusses inequality, the Gini coefficient measure of inequality, and how India's Gini index and inequality has risen in recent decades.
A study of what population policy is, how it evolve, types of population policy; weaknesses and strengths taken from the cases of India, China and Zimbabwe
The document summarizes several classical theories of economic development:
1) Adam Smith, David Ricardo, and J.S. Mill believed that economic growth would slow or stop due to increasing population and limited resources.
2) Thomas Malthus argued that population growth alone does not lead to development and that capital accumulation is necessary for continued growth.
3) Walt Rostow proposed a model of economic growth occurring in five stages: traditional society, preconditions for take-off, take-off, drive to maturity, and high mass consumption.
4) John Stuart Mill viewed economic development as dependent on land, labor, and capital, and distinguished between productive and unproductive consumption.
Dependency theory posits that peripheral, less developed nations are dependent on core countries for their economic development, which hinders their ability to develop and benefits core nations. It was developed by Raul Prebisch in response to global disparities and argues that the structure of the world economy favors core countries over peripheral ones. The theory is illustrated through Haiti's history as a peripheral nation dependent on France during colonial rule, which left it impoverished despite producing valuable exports.
introduction economics growth and development.pptxAMBIKABHANDARI5
Economic growth can be defined as an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. It can be measured in nominal terms, which include inflation, or in real terms, which are adjusted for inflation. Economic development is a wider concept than economic growth and aims for development of human capital, infrastructure, health, literacy rates, and general welfare. It involves both quantitative and qualitative changes in the economy to promote standard of living and economic health. Some key indicators of economic development include GDP per capita, life expectancy, literacy rates, and measures of poverty.
The three essential processes of an economy are production, consumption, and investment.
Production involves the creation of goods and services to satisfy human wants. Consumption is the use of goods and services to directly satisfy wants. Investment is the addition to the total stock of capital through inventory investment in finished goods and fixed investment in capital goods. These three processes work together to drive economic activity, with production creating goods and services, consumption driving production, and investment enabling future production and economic growth.
This document discusses modernization theory, which posits that societies progress through stages from "traditional" to "modern". It is criticized for privileging markers like urbanization, literacy, and industrialization to define modernity. Key questions are raised around who defines modernity and whether all societies truly progress in the same linear way. The theory is also examined in the context of its origins in post-World War 2 United States as a way to promote capitalism over communism and analyze newly decolonized nations. Functionalism, which views society as analogous to a biological organism, is discussed as an influence on modernization theory.
This document summarizes key ideas from two works: Frank's "The Development of Underdevelopment" and Dos Santos' "The Structure of Dependency". Frank argues that modernization theory, which views underdevelopment as a natural phase, is deficient because it ignores how colonialism altered development paths in the Third World. Underdevelopment was intentionally created through exploiting resources and transferring economic surplus to Western nations. Dos Santos identifies three historical forms of dependency - colonial, financial-industrial, technological-industrial - and how they structurally limit industrial development and reproduce inequality in dependent nations under foreign capital's control.
The development gap and how it can be measuredjodiecmills
There are several ways to measure development levels and the gap between developed and developing countries:
1) GDP and GNP per capita are traditional economic measures but don't capture inequalities within countries.
2) Social indicators like health, education, and housing provide a more holistic view of development.
3) Composite indices that combine economic and social factors, such as the Human Development Index, provide a comprehensive overview of development levels.
4) Other indices measure specific issues like the digital divide, gender inequality, and livability between countries. No single measure can fully capture a country's development status.
The document discusses several theories of development, including modernization theory, dependency theory, and world systems theory. Modernization theory views development as a linear process of progressing through stages from traditional to modern societies. It was criticized for being ethnocentric and not accounting for alternative paths. Dependency theory argues underdevelopment is caused by the core-periphery global economic system that benefits wealthy nations at the expense of poorer ones. World systems theory builds on dependency theory by analyzing development at the global level and emphasizing the exploitative relationship between the core and periphery in the capitalist world system. The document provides overviews and criticisms of each theory.
Globalization refers to the increasing integration and interdependence of economies and societies around the world through increased cross-border movement of goods, capital, services, and people. It has led to greater global economic, political, and cultural integration. While it offers opportunities for economic growth and development, it also poses challenges related to increased inequality, urbanization, environmental pressures, and cultural homogenization that require careful planning and policy responses.
This document discusses various indicators used to measure development. It begins by outlining economic, political, social, and subjective indicators. It then categorizes indicators as economic, educational, health-related, composite, and gender-related. Composite indicators like the Human Development Index and Gender Empowerment Index combine individual indicators, while single indicators measure one thing like child mortality. Commonly used indicators include GNP, HDI, and poverty rates. The document also discusses indicators for education, health, and gender inequality.
This document provides an overview of modernization theory. It discusses:
1) The emergence of modernization theory in the late 1940s/1950s as a response to concerns about the spread of communism in developing countries. The theory promoted the adoption of Western capitalist and democratic models of development.
2) Modernization theory viewed developing countries as "traditionally" held back from development due to cultural barriers, and proposed they develop through industrialization and adopting Western values/institutions with assistance from Western countries.
3) Critics argue modernization theory promoted an overly simplistic view that did not account for diversity in development paths or historical/cultural contexts of different societies. The theory was also seen as ethn
The document discusses the topic of modernization. It defines modernization as the process of industrialization, urbanization, and other social changes that transform people's lives. It then covers some key aspects of modernization including social change brought about by new inventions and discoveries, cultural diffusion, characteristics such as the decline of traditional communities and increased bureaucratization. The document also provides a history of modernization, touching on developments in global communication technologies, the roles of industrialization, colonialism, and the spread of ideologies in the modernization process.
This document discusses reducing inequalities as outlined in UN Sustainable Development Goal 10. It notes that while laws may provide for equality, in practice extreme gaps exist between formal rights and actual equality. To address this, a 3-point framework is proposed focusing on resources, respect, and voice. Specific targets and policies are outlined to promote inclusion, equal opportunities, and reduce inequality outcomes through 2030. Barriers to achieving equality are analyzed, including lack of quality data and surveys in some countries.
This document summarizes Thomas Malthus' theory of population growth. It outlines Malthus' key assumptions, including that population grows geometrically while food production grows arithmetically, leading to an imbalance. It also discusses Malthus' ideas around positive and preventive population checks. The document then summarizes several criticisms of Malthus' theory, including that technological advances have allowed food production to keep pace with population growth, and that migration and birth control have disrupted the relationship between population and subsistence assumed by Malthus.
This document provides an overview of dependency theory and its key concepts. It discusses:
- The background and emergence of dependency theory from criticisms of modernization theory by Latin American scholars.
- How dependency theory views unequal relationships between core developed countries and peripheral less developed countries, with exploitation of the latter by the former.
- Mechanisms by which core countries extract surplus from peripheries through trade, investment, aid, and technology transfer.
- Influential analyses by Paul Baran, Andre Gunder Frank and others that sought to explain underdevelopment as a result of relationships with core economies and capitalism.
The document discusses Emile Durkheim's theories of the division of labor and social solidarity. It defines mechanical solidarity as social solidarity in small, traditional societies with little division of labor. Organic solidarity refers to solidarity in modern societies with complex division of labor and interdependence. Durkheim argued that the division of labor increased as societies became more populous and complex, not due to desires for happiness. There are two abnormal forms of division of labor: anomic, which lacks regulation; and forced, as seen in child labor.
This slide deals with basic concepts and theories of Globalization and Development. The role of various international institutions in a development process.
Dependency theory developed in the late 1950s led by Raul Prebisch to explain why economic growth in wealthy nations did not necessarily lead to growth in poorer countries. It argues that poorer nations are dependent on wealthy nations for resources, markets, and obsolete technology, which prevents self-sustaining development. Wealthy nations also actively maintain this state of dependence through economic, political, and cultural means. Dependency theory aimed to explain the persistent underdevelopment and inequality between nations as an intrinsic result of the patterns of interaction and trade within the global economic system.
This theory throws light on changes in birth and death rate and consequently on the growth rate of population. The relationship between birth and death rate changes with economic development and a country has to pass through different stages of population growth. This theory depicts the four stages of demographic transition that a country has to pass.
Urbanization refers to the migration of people from rural to urban areas in search of jobs, opportunities, and improved living conditions for their families. People are pulled to cities by the availability of infrastructure, jobs, education, healthcare and entertainment. They are pushed from rural areas due to lack of these resources and facilities. However, rapid urbanization leads to problems like overcrowding, unemployment, increased crime rates, pollution, and the development of slums. These issues can be addressed by controlling urban population growth and developing rural communities and infrastructure to discourage migration.
The document defines and discusses different aspects of poverty. It defines absolute and relative poverty, with absolute poverty referring to lack of means to meet basic needs and relative poverty considering social and economic status compared to others. It discusses the poverty line as the minimum income level required to afford life's necessities, and how the World Bank adjusted the international poverty line over time. It provides statistics on global and regional poverty rates. For India, it details how the poverty line was originally calculated and varies between states, with some below 10% and others above 40%. It also discusses inequality, the Gini coefficient measure of inequality, and how India's Gini index and inequality has risen in recent decades.
A study of what population policy is, how it evolve, types of population policy; weaknesses and strengths taken from the cases of India, China and Zimbabwe
The document summarizes several classical theories of economic development:
1) Adam Smith, David Ricardo, and J.S. Mill believed that economic growth would slow or stop due to increasing population and limited resources.
2) Thomas Malthus argued that population growth alone does not lead to development and that capital accumulation is necessary for continued growth.
3) Walt Rostow proposed a model of economic growth occurring in five stages: traditional society, preconditions for take-off, take-off, drive to maturity, and high mass consumption.
4) John Stuart Mill viewed economic development as dependent on land, labor, and capital, and distinguished between productive and unproductive consumption.
Dependency theory posits that peripheral, less developed nations are dependent on core countries for their economic development, which hinders their ability to develop and benefits core nations. It was developed by Raul Prebisch in response to global disparities and argues that the structure of the world economy favors core countries over peripheral ones. The theory is illustrated through Haiti's history as a peripheral nation dependent on France during colonial rule, which left it impoverished despite producing valuable exports.
introduction economics growth and development.pptxAMBIKABHANDARI5
Economic growth can be defined as an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. It can be measured in nominal terms, which include inflation, or in real terms, which are adjusted for inflation. Economic development is a wider concept than economic growth and aims for development of human capital, infrastructure, health, literacy rates, and general welfare. It involves both quantitative and qualitative changes in the economy to promote standard of living and economic health. Some key indicators of economic development include GDP per capita, life expectancy, literacy rates, and measures of poverty.
The three essential processes of an economy are production, consumption, and investment.
Production involves the creation of goods and services to satisfy human wants. Consumption is the use of goods and services to directly satisfy wants. Investment is the addition to the total stock of capital through inventory investment in finished goods and fixed investment in capital goods. These three processes work together to drive economic activity, with production creating goods and services, consumption driving production, and investment enabling future production and economic growth.
This document summarizes key concepts in economics including:
1) National economic performance is measured by variables like growth, inflation, unemployment, and the current account, but tradeoffs may occur when trying to achieve all goals at once.
2) The circular flow of income shows how households supply factors to firms in exchange for income, which is then used to buy goods and services in a continuous flow.
3) Economic growth is defined as increases in productive capacity and output over time, measured by variables like GDP, and it contributes to improved living standards but also has critics regarding sustainability and negative externalities.
Welfare economics deals with topics related to economic growth and development, such as justice, equity, freedom, and individual welfare. It assumes individuals are the best judges of their own welfare. Economic growth refers to an increase in per capita income, while economic development is a process whereby real per capita income increases over time. Development theories include the Harrod-Domar model, exogenous growth model, surplus labor model, and Rostow's stages of growth model. Measuring national income can be done via the product, expenditure, and income methods. The expenditure method defines national income as the total of consumption, investment, government spending, and net exports.
This document provides an overview of economic concepts including the meaning of an economy, phases of economic development, methods of measuring economic activity, indicators of economic development such as the Physical Quality of Life Index and Human Development Index, the concepts of economic growth and economic development, and factors that influence economic development. It defines key terms and discusses the differences between economic growth and economic development.
Here are my responses to your review questions:
1. Some key government policies that can promote economic growth discussed in the document include encouraging saving and investment, education and training, securing property rights and maintaining political stability, promoting free trade, controlling population growth, and promoting research and development.
2. The influx of more women in universities could positively influence the economy by expanding the overall human capital and skills in the labor force. Educating and training more women would increase productivity over the long run and potentially lead to more innovation. It could also help reduce gender imbalances in the labor market and certain occupations. Overall, greater educational attainment and workforce participation of women has the potential to boost economic growth.
This document provides information about an economics course, including contact details for the professor, class rules, course requirements, and topics that will be covered such as measuring economic growth and development. Key topics include defining GDP and how it is measured, issues with GDP measurement, real vs nominal GDP, Purchasing Power Parity for international comparisons, and examples of calculating GDP growth rates.
This is intended to develop uses understanding of the family as an economic unit. It will examine the family’s goal of improving its standard of living and the economic decisions the family makes to improve its well-being.
The document discusses several indicators used to measure and compare economic development levels between countries. It explains that while natural resources were historically important, productivity is now seen as the main indicator of development. The Human Development Index (HDI) is the most widely used composite measure, assessing health, education and income. However, no single measure can fully capture development, so indices continue evolving to include more factors like environment, gender equality and technology. GDP and GNP per capita also provide comparisons, but have limitations and do not show income distribution or quality of life factors. Overall development analysis requires considering multiple economic, social and environmental indicators.
Economic Growth and Development power point chapter 5 (1) (1).pptxDrGyemDorji
This document discusses economic growth and development. It defines economic growth as an increase in goods and services produced over time, driven by increases in factors like capital, labor, technology and human capital. Economic development is defined as improvements in a country's wealth and standard of living, as measured by indicators like life expectancy, literacy rates, and education standards. While economic growth refers to quantitative increases in production, economic development implies qualitative improvements in a country's economy and society.
Economic growth is measured as an increase in the quantity and quality of goods and services produced. It is difficult to accurately measure across societies due to various factors. Infrastructure development is important for economic growth as it enhances productivity and competitiveness. Public infrastructure includes facilities like transportation, water, power, and telecommunications that are developed and owned by the government for public use. Infrastructure requires significant investment and can be financed through taxes, user fees, or public-private partnerships.
The document discusses various concepts related to national income and inflation. It defines national income as the total value of goods and services produced in a country in a year. It describes different methods of measuring national income, including the product, income, and expenditure methods. It also discusses related terms like GDP, GNP, and per capita income. Regarding inflation, it defines inflation and outlines different types. It discusses factors that cause demand-pull and cost-push inflation and strategies that governments use to control inflation.
Economic growth and development and IncomeAbinash Pandia
Economic growth measures the value of goods and services produced, while economic development measures human welfare. Economic growth is affected by factors like natural resources, capital formation, technology, education and political stability. Countries can be measured based on GDP, GNP, HDI and other indicators. GDP can be calculated using production, expenditure and income approaches by summing value added, expenditures and incomes. International comparisons use market exchange rates or purchasing power parity rates.
The economic environment refers to all economic factors that influence business operations. It determines the inputs businesses need and the markets to sell finished goods. Key elements include gross national income, GDP, inflation, unemployment, poverty levels, and the type of economic system - whether it is a market, command, or mixed economy. Managers must assess the economic environment to make investment and strategic decisions that account for local conditions and predict future performance.
The document discusses economic growth, which can be defined as an increase in the output an economy produces over time or an increase in its productive potential as shown by an outward shift in its production possibility frontier (PPF). The PPF depicts maximum output possibilities given available resources. Economic growth occurs when an economy employs new technology, production methods, labor, raw materials or specialization through division of labor, leading to an outward PPF shift. Inward PPF shifts indicate reduced capacity from resource depletion, failure to invest, natural disasters or asymmetric growth between sectors. Factors influencing growth include social capital, technology, investment, health, education, productivity, population changes, trade and business environment policies. GDP and GNP per capita are measures
Income distribution, poverty, and living standards can be measured in various ways. The document discusses four main approaches to measuring income: the transaction approach, activities approach, balance sheet approach, and value added approach. It also discusses defining and measuring poverty and income inequality using metrics like the Gini index. Poverty reduction measures aim to permanently lift people out of poverty, while standard of living is measured using GDP per capita and factors like consumer spending, business investment, government spending, and net exports.
This document provides an introduction to business economics, including key concepts and differences from general economics. It discusses how business economics deals with applying economic principles to problems faced by firms. It also outlines several important economic indicators and factors relevant for business, such as infrastructure, GDP, inflation, money supply, foreign trade, and exchange rates. The role of government in areas like economic development, price and exchange rate control is also highlighted.
This document discusses several key topics related to measuring economic activity and growth:
1. Total output in an economy (gross domestic product or GDP) can be measured in three equivalent ways: by total output, total income, or total expenditure in the economy.
2. GDP is used to measure the total value of goods and services produced, but nominal GDP does not account for inflation - real GDP adjusts for inflation to show the actual growth in output.
3. Economic growth is defined as the increase in real GDP from one period to the next. Long-term growth comes from expanding an economy's productive potential through factors like new resources, technology, education, and efficient allocation of resources.
4.
This document discusses economic growth and development. It defines economic growth as an increase in a country's production capacity over time, which can be measured in nominal or real terms. Economic development involves policy interventions to develop human capital, infrastructure, health, and welfare. It aims to improve living standards and is measured by indicators like the Human Development Index. Factors like inflation, taxes, interest rates, and government policies can affect economic development. The document also discusses India's economic growth and development in recent decades since economic reforms began in 1991.
This document defines and explains key macroeconomic concepts related to measuring a nation's income and production. It discusses Gross Domestic Product (GDP) as the total market value of all final goods and services produced within a country in a given period. GDP is calculated using the expenditure and income approaches and is adjusted for inflation using the GDP deflator to determine real GDP. The document also outlines factors that influence GDP growth and limitations of GDP as a measure of economic well-being.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
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Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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3. • Amongst other things this means that people and countries can
exchange information and goods more quickly and in a less
complicated manner.
• This process in known as GLOBALISATION .
• Etymology – GLOBE.
4.
5.
6. • Both the companies are in direct competition
• But they pay the same
• Salary
• Production cost
• Same class of customers
• Similar suppliers
• As a result of which they offer the end product at a SIMILAR PRICE
7. With globalization..
• The countries that manufacture products (Television) at different
conditions i.e., lower production cost etc., can now offer the same
product in India at a LOWER PRICE.
8.
9.
10.
11. • Globalisation is the growing interdependence between nation as a
result of the free movement of labour, goods and services and
capital.
• With globalisation there is world wide economic activities because
there is a borderless world or global village.
Capital here, refer to the movement of money for the purpose of investment, trade, or business operation.
12. Outcomes of Globalization
Access to New Cultures
• Globalization makes it easier than ever to access foreign culture,
including food, movies, music, and art.
• This free flow of people, goods, art, and information is the reason you
can have McD (America) delivered to your apartments as you listen to
your Spotify (Sweden) or stream a Bollywood movie on Netflix
(America).
13. The Spread of Technology and Innovation
- Many countries around the world can now remain constantly
connected (through Skype, Zoom, G meet) so knowledge and
technological advances, travel quickly.
- As knowledge also transfers fast, scientific advances made in Asia
can be at work in the United States in a matter of days.
14. Lower Costs for Products
- Globalization allows companies to find lower-cost ways to produce
their products. (MacBook - designed in USA, assembled in China)
- It also increases global competition, which drives prices down and
creates a larger variety of choices for consumers. (Onida,
Micromax and mi)
- Lowered costs help people in both developing and already-
developed countries live better on less money.
15. Higher Standards of Living Across the Globe
- Developing nations experience an improved standard of living due
to globalization. According to World Bank, extreme poverty
decreased by 35% since 1990.
- Further, the target of the first Millennium Development Goal was
to cut the 1990 poverty rate in half by 2015. This was achieved
five years ahead of schedule, in 2010. Across the globe, nearly 1.1
billion people have moved out of extreme poverty since that time.
WORLD BANK
16. Access to New Markets
with the coming of globalisation both the consumers as well as
providers are now able to access new market at the comfort of their
homes (Amazon, Flipkart)
17. Access to New Talent
In addition to new markets, globalization allows companies to find
new, specialized talent that is not available in their current market.
For example, globalization gives companies the opportunity to
explore tech talent in booming markets such as Berlin or Stockholm,
rather than Silicon Valley. (Cheaper rate)
21. A rubbish heap can grow but does not develop
- R.L Ackoff
Ackoff was a pioneer in the field of
operations research, system thinking
and management science
Economic Growth
22. Economic Growth
• Is the rubbish heap
• Is the amount of material goods that a society has
• It is the amount of goods and service that are produced in an
economy and it is measured by GDP or GDP per capita i.e. per person
23. GDP
• GROSS DOMESTIC PRODUCT
• GDP is the value of all final goods and services produced within a country
in each year
• Final = only finished goods (T-Shirts) and not intermediary goods (cotton
yarns) unless they are capital goods (tractors).
• Within = imported goods are not included
• Each year = only goods produced in the year of calculation – second
hand goods not included
24. Calculation of GDP (Expenditure Approach)
GDP = C + I + G + NX
Where,
C = consumption
I = Investment
G = Govt. Spending
NX = Net Exports
25. • Consumption – is another way of saying consumer spending
It is the money you and spend on physical goods like coffee, and on services like haircut
etc.
• Investment - this measures how much business spend on things like buildings, land and
equipments it also includes major consumer investments like buying a house etc.
• Govt. spending – this is the money local state and national government spend on things
like roads, schools, defense etc., govt. spending varies a lot on each countries approach
to public goods and services.
• Net exports or (exports - imports) – a lot of countries have –ve net exports because
they bring in more than they send out .
26. • Countries around the world collect data on consumption, investment,
government spending and net exports.
• This makes GDP a universal measure and a way to know the size of an
entire economy.
27. GDP Growth Rate
• Merely finding the GDP doesn’t make any sense, on finding the GDP
we have to find the GDP growth rate using the formula
• GDP growth = (GDP in current period - GDP in the previous period) /
GDP In the previous period * 100
• On finding the GDP growth rate we can find whether there is an
expansion or contraction in the growth of GDP.
28. Expands = Economy is healthy
Contracts = Economy in bad shape
2 consecutive quarters of –ve GDP
= Recession
29. Economic Development
• Economic development unlike economic growth is a much broader
measure
• It looks at the overall health of the nation and it’s people.
• Thus it looks into health care, education, environmental quality and
it also takes into account material wealth i.e., Economic Growth
30. ECONOMIC GROWTH ECONOMIC DEVELOPMENT
Economic growth
- is about material living
standards.
- this is about stuffs or
material goods i.e., how
many cars, take-away
meals, hair-cut a person
can get or buy .
Economic development
- is about the quality of life
- it is about the living
standards
- it is about what it is like
to life in a country.
- Health care, education
etc.
31. How do we compare living standards
between countries?
• Simple, look at how much people earn – income this is a clear indicator of
difference between people’s lives.
• Income tells us the ability of a nation’s citizen to satisfy their material
wants i.e., is their ability to buy a new car etc., it tells us the quality of life
• So if we are just comparing the living standards i.e., just the income we
just need to find the GNI – which is the overall income of a country
• It is usually calculated on per person basis thus it is called GNI per capita.
32. GNI &GDP
• GNI – value of income received
• GDP – value of production
GDP GNI
Is the value of
production i.e. what is
the produced goods
and service worth.
Is the amount of
money that producers
received – it is the sum
of the income.
GDP is just within the
countries.
GNI can be from inside
and outside of that
country.
33. Human Development Index
• With GNI, we are only comparing, economies on the basis of income.
• When looking at GNI, we are only focusing on material living
standards and not on broader quality of life.
• To measure economic development along with GNI we also take into
account health, education, environmental quality etc.
• The primary measure of Economic Development is HDI – Human
Development Index.
34. HDI MEASURES
GNI per capita (PPP Basis) Measures material standards of living
Life expectancy at birth Demonstrates health and nutrition
standards of a country
Levels of education
attainment
Measures years of school attendance.
Education is important for the
development of workforce/Economy
38. • While the orthodox view of development aims to raise people’s
income, Sen argues that this is of little use to people who still suffers
in terms of health and education.
• Sen believed that personal freedom in all aspects of life was an
important way to enhance economic development.
41. • For example – In a working enviroment, if someone can’t read they
will struggle to use their money wisely to develop business. Therefore
if they were able to develop the necessary skill to increase their
freedom it would result in being able to do more and as a result be
more freer
44. Company A
• Employees come in do their job as long as possible and leave
• There is no health care
• There is no training programs
• The managers hired are all from other countries and there is minimal
bounding between managers and workers that would lead to progression.
• If any one tries to speak up against the system they get fired.
45. As a result of this poor working conditions there is a,
• Below average products are produced
• And there is high employee turnover
46. Company B
• Focuses on making sure that the employees are looked after they have
fair pay, holidays and breaks
• If workers protest, issues are discussed leading to a happier workforce
• If the employees are ill they have health care and are back to work
quickly
• Employees get promoted quickly and this motivation means that staff
turn over is less
47. • Here, Company B follows Sen’s model as it is trying to focus on
freedom beyond income with a greater focus on self improvement
and quality of life
• The chances are company B will preform better than the unfree
company.
48. • Sen argues that this inclusive open management structure has be
proven to be a more effective way of creating freedom in the lives of
the people.
49. Conclusion
• Globalization – development.
• Unequal Economic growth.
• Focus on economic development rather than growth.