1) What is the real meaning of development?
-Development is a process of improving the quality of all human lives and capabilities by raising
people‟slevel of living, self-esteem and freedom. This process is not of years, but of many
decades and goals is ever-changing. According to Todaro, Development must, therefore, be
conceived of as a multi-dimensional 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 ofabsolute poverty.Development means “improvement in country‟s
economic and social conditions”. More specially, it refers to improvements in way of managing an
area‟s natural and human resources. In order to create wealth and improve people‟s lives.
2)Which are the most relevant theories of development in the present time?
-Modern theory of economic growth focuses mainly on two channels of inducing growth through
expenses spent on research and development on the core component of knowledge innovations. First
channel is the impact on the available goods and services and the other one is the impact on the stock of
knowledge phenomena.The neo-classical theory of economic growth suggests that increasing
capital or labour leads to diminishing returns. Therefore,increasing capital has only a temporary
and limited impact on increasing the economic growth. As capital increases, the economy maintains its
steady-state rate of economic growth.
3)Is underdevelopment a domestic or internally induced phenomenon?
-Underdevelopment is viewed as an externally-induced process which is perpetuated by a small but
powerful domestic elite who form an alliance with the international capitalist system. The
“development of underdevelopment” is therefore systemic and path-dependent.
4)Explain implication of extreme gap between rich and poor countries in the worldIn an interconnected global society with an abundance of wealth, technological capacity and
expertise, it is morally reprehensible and economically short-sighted notto have ended extreme poverty
decades ago. But this will be impossible without simultaneously redressing levels of global
inequality, which have steadily increased since the 1980s when corporate-driven policies of economic
globalisation were widely adopted. In order to tackle this growing crisis of „poverty