Development
Economics
Development Economics
Introduction
to
Development Economics
DEVELOPMENT ECONOMICS:
Development Economics is the branch of Economics
which deals with the Economic Development of the
Less Developed Countries (LDC).
Along with the efficient utilization of scarce resources and
their growth over time as focused on by traditional
economics, development economics tries to cover the
political, social , economic and institutional mechanisms to
bring about rapid and large scale improvements in the life
standards of poor and malnourished populations of
developing countries.
Development Economics
The need for a separate field of economics was felt as existing
and traditional areas of economics were unable to bring any
significant shift in the economic prospects of many developing
countries. In the above context development economics tries to
focus on various areas to bring about a noticeable change in
the economic prospects of developing countries:Development Economics is said to be the Economics
dealing with Economic Growth of the less developed
countries (LDCs), Poverty & Unemployment, Rural,
Agricultural and Industrial backwardness, Human and
Capital Resource Mobilization and Problems regarding
International Backwardness and Development.
Development Economics (continued)
Development Economics, must, therefore, identify the
mechanisms that keep entire societies in poverty and develop
strategies that will enable people to break out of the trap of
poverty and backwardness.
Development Economics needs to be concerned with political,
economic and cultural requirements of progress and change so
that rapid transformation of entire societies so as to spread the
fruits of economic progress as broadly as possible.
Important Questions in Development Economics?
1. What is the real meaning of development and how we can
develop a better understanding of the process of
development.
2. What are the sources of growth and why do some countries
develop rapidly whereas others lag behind ?
3. Is development an internally or externally induced
phenomena?
4. What can be learned from the historic process of
development as shown by the developed countries? How
similar or different conditions are in less developed
countries in comparison to developed countries when the
started on the process of development?
Important Questions in Development Economics?
5. What role can women play in speeding up the process of
development? How can their role in economic processes be
improved?
6. What is the impact of rapid population growth on the
process of growth and development
7. What are the causes of extreme poverty and what policies
are most effective in improving the lot of the extremely
poor?
8. What is the impact of better or poor health on the process of
development?
Important Questions in Development Economics?
9. What are the causes of unemployment in developing
countries?
10. What is the connection between agriculture and
development?
11. What is the link between ecology and development
12. Does expanded international trade work in favor of
developing countries how should developing countries
protect local industry?
Important Questions in Development Economics?
13. Should primary products be exported or should they be
processed and value added?
14. How can developing countries resolve their serious debt
issues?
15. When and how should developing countries protect local
industry?
16. What impacts have IMF & World Bank had on the
development of third world economies?
Important Questions in Development Economics?
17. Multi national corporations and investment in developed
countries. Who gains?
18. Globalization’s impact on poorer countries?
19.What is the impact of foreign aid on developing nations?
20.Are free market economy and privatization the answer to
poor countries development and what should be the role of
government in developing countries?
21 Why do developing countries have such poor development
policies?
Important Questions in Development Economics?
22. What is the impact of fiscal and monetary policies on
development? Do large military budgets stimulate or retard
growth?
23. What are the reasons for extreme differences in income
between the relatively few rich and many poor?
Scope of Development Economics:
Chapter 1: Introduction to Development Economics:
This chapter ‘introduction to Development Economics’
introduces the subject, its importance and its area of study.
This chapter covers the following points in detail.
•
What is Development Economics and its Area of study
•
What are the Reasons for studying development
economics.
•
Which countries are Less Developed Countries (LDCs)
and what are their common Characteristics.
Scope of Development Economics…..continued
Chapter 2: Development Vs Growth
This chapter ‘Development Vs Growth’ brings under
discussion the basic difference between the two economics
terms and specifically focuses on economic development. It
covers the following points in detail.
• What is Economic Growth & Economic Development,
• What are the Elements of economic development
• What Structural Changes are needed for development
Scope of Development Economics…..continued
Chapter 3: Economic Development
This chapter ‘Economic Development’, highlight the
importance of economic development. It also determines
that for a country to develop, what the are essentials. This
chapter covers the following points in detail.
• What are the Objectives of Development
• What are the Indicators of economic development
• What are the Pre-requisite of economic development
Scope of Development Economics…..continued
Chapter 4: Economic Development (continued….)
This chapter is the continuity of the chapter 3 ‘Economic
Development’ focuses on the various obstacles in the
economic development. This chapter covers the following
points in detail.
•
What are the Obstacles to economic development of
the Less Developed countries.
•
What are the Remedial measures for economic
development.
Scope of Development Economics…..continued
Chapter 5: Capital Formation
This chapter ‘Capital Formation’, highlight the importance
of increase in the stock of capital of a country over time. It
covers the following points in detail.
•
What is Capital Formation & its importance
•
What are the Sources of capital formation in the Less
Developed Countries (LDCs)
•
What are the Causes of low capital formation in
LDCs
•
What are the Measures to increase capital formation.
Scope of Development Economics…..continued
Chapter 6: Development Tools
In this chapter ‘Development Tools’, various tools that could
be used for developing a country are discussed. It covers the
following points in detail.
•
Per capita Income & economic development
•
Deficit Financing & economic development
•
Privatization Policy & economic development
•
Technology & economic development
Scope of Development Economics…..continued
Chapter 7: Foreign Resources and Development
This chapter ‘Foreign Resources and Development’ is the
continuity of the previous chapter ‘Development Tools’.
Foreign Resources can be utilized for economic development
of a country. This chapter covers the following points in
detail.
• What is Foreign Aid & What is the role of Foreign Aid in
the economic development of LDCs.
• What is Foreign Investment & What is the role of
Foreign Investment in the economic development of
LDCs.
Scope of Development Economics…..continued
Chapter 8: Population & Development
This chapter ‘Population and Development’ focuses on the
population aspect of the LDCs. This chapter covers the
following points in detail.
• What are the Effects of increasing population on the
economic development of LDCs.
• What is Human Capital Formation and what are its
problems in LDCs.
• What is Human Resource Development
• What is Manpower planning and what are its objectives.
Scope of Development Economics…..continued
Chapter 9: Urbanism & Economic Development
This chapter ‘Urbanism & Economic Development’ explains
the benefits of the urban areas to the people, Manufacturers,
traders, and the whole economy. This chapter will cover the
following points in detail.
•
What is an urban area
•
What are the benefits of urban areas to
 The household
 The trade
 The economy.
Thank you