What do you mean by economic development?

 MEANING OF ECONOMIC DEVELOPMENT...

 The term ' economic development' extend the scope of economic theory in modern times. Every country wants to achieve higher rate of economic development. Various economists defined the term 'economic development' in different y. So it's very difficult to define the term ' economic development'. However, economic development is the process of improving standard of living, reducing poverty, inequality, unemployment, expanding employment opportunities and increasing per capita income over a long period of time. 

   According to classical economists, economic development means to increase in per capita GNP by the rate of 5% to 7% or more over a time. It means economic development refers only to the increase in National income over a long period of time. But according to some classical economists like Prof. Meier, economic development is a process whereby the real per capita income increases over a long period of time. 

    Modern economists redefined the concept of economic development by focusing quantative and qualitative aspect. According to them economic development in technical and institutional arrangements by which it is produced and distributed. The following 3 things must be maintained properly for higher rate of economic development in the country:

1. Life sustinance (ability to meet basic needs) 

2. Self-esteem (related to self-respect and independency) 

3. Freedom ( freedom to choose the wants) 

Comments

Post a Comment

If you have any problem then share with me.

Popular posts from this blog

Comparison between the Marshall and Robbins definition of economics...

 Marshall defined economics as a science of material welfare. It emphasized on human welfare through the attainment and use of the material requisites of well-being. On the other hand, Robbins's definition of economics as a science of scarcity and choice emphasized on maximum satisfaction while satisfying unlimited wants through limited means which have alternative uses. From intensive analysis of these two definitions, we find the following similarities and dis-similarities:- Similarities.....  1. Study of human efforts : Both Marshall and Robbins considered economics as the study of human behavior or efforts for the material welfare of human beings or maximum satisfaction of human beings.  2 . Study of rational man: Both definitions are based on the assumption of rational man. The function of attaining and using material things for welfare of human beings in Marshall's definition and maximizing satisfaction through the scarce resources in Robbins's definition can be achie
Read more

Adam Smith Definition of Economics

 Adam Smith's definition of Economics...  Adam Smith, founder of modern economics and the leader of classical economists developed economics as a separate social science. So he is regarded as a father of Modern Economics. He wrote a book on the subject named " An Enquiry into the Nature and Causes of the Wealth of the Nations " which was published in 1776AD. This book is regarded as the holy book of economics and popularly know as'The Wealth of Nations'. The name of the book is itself sufficient to understand what economics is and the subject matter does it cover.                    According to him, economics is the study of the nature and causes of the wealth of the nation and it is concerned with production and increase of nation's wealth. The term wealth means sufficient money resources. This definition was supported by various classical economists like J. B. Say, J. S. Mill, F. A Walker, David Ricardo, Thomas Robert Mathus etc. According to J. B Say, &quo
Read more

What is demand and its various types?

Image
 Definition of Demand... In common language, demand is same as desire. But in economics, demand means effective desire which is supported by ability to pay and willingness to pay for goods and services. For example: if a poor person wanted to have an iPhone, it’s just his/her desire because he/she doesn’t have ability to pay for iPhone. Similarly, if a rich person wanted to buy an iPhone , it may be a demand because he/she has ability to pay for iPhone. To have a complete definition of demand, the price per unit of a commodity and the period of time in which quantity is being demanded should be clearly stated. Therefore, demand means desire, ability to pay and willingness to pay for goods and services at certain price during a certain period of time. According to Benham, “The demand for anything at a given price is the amount of it, which will be bought per unit for time at that price”. Thus demand for a commodity is defined as a schedule which shows various amounts of that commodi
Read more

Difference between movement along the demand curve and Shift in demand curve

Image
  Difference between movement along the demand curve and Shift in demand curve....  The main difference between movement along the demand curve and Shift in demand curve are as given below: 1. When the commodity experience change in both the quantity demanded and price, causing the curve to move in specific direction, is known as movement along the demand curve. But when the price of a commodity remains constant but there is a change in quantity demanded due to some other factors, causing the curve to shift in a particular side, it is called Shift in demand curve.  2. Movement in demand curve occurs along the curve, whereas the shift in demand curve changes its position due to change in original demand relationship.  3. Price is the main determinant of movement along the demand curve whereas other factors except price are the determinant of shift in demand curve.  4. Movement along the demand curve indicates the change in quantity demanded whereas Shift in demand curve indicates the ch
Read more