5 Phases of Economic Development - A La Kuznets - Government- LED - Malthusian - Human Capital Based - Post Demographic Transition

1. PHASES OF ECONOMIC
DEVELOPMENT
PREPARED BY: RICH PAGADUAN

2. ECONOMIC DEVELOPMENT
• Economic development is the process by which a
nation improves the economic, political, and social
well-being of its people.
• Economic development can be defined as efforts that
seek to improve the economic well-being and quality of
life for a community by creating and/or retaining jobs
and supporting or growing incomes and the tax base.

3. 5 PHASES OF ECONOMIC
DEVELOPMENT

4. MALTHUSIAN
• Proposed by Thomas Robert Malthus (1766 – 1834)
• A theory about economic growth which depends on
the rate of the population of a certain area
• The economic growth is inversely proportional to
the population. The smaller population, the higher
the economic growth and vice versa.

5. MALTHUS THEORY

6. GOVERNMENT – LED ( LOCAL ECONOMIC
DEVELOPMENT)
• An approach towards economic development which
allows and encourages local people to work together
to achieve sustainable economic growth and
development.
• Support the formation of a partnership between
local and national institutions towards strategic
implementations.

7. A LA KUZNETS (GOVERNMENT VS. ENVIRONMENT)
• Proposed by Simon Kuznets
• The existence of a pattern or behavior, between
economic growth and environmental degradation,
consistent with the environmental Kuznets curve
(EKC) hypothesis.

8. KUZNETS CURVE

9. HUMAN CAPITAL BASED
• Is a measure of the economic value of an employee’s
skill set.
• Refers to the knowledge, skill sets and motivation
that people have, which provide economic value.
• It could be invested in through education, training
and enhanced benefits that lead to an improvement
in the quality and level of production.

10. POST DEMOGRAPHIC TRANSITION
• proposed in 1929 by Warren Thompson
• is the transition from high birth and death rate to
lower birth and death rate as the country develops
from pre- industrial to an industrialized economic
system
• fertility rate decreases when child mortality is low,
and is weakly dependent in GDP.