Economic Development

Done By: Radha Sookram, Simran Larrah, Soriyah Goring,Raveena

What is Economic Development?

• Economic development ideally refers to the sustained, concerted actions of communities and policymakers that improve the standard of living and economic health of a specific locality.

• Economic Development is the sustainable increase in the quality of life or residents in developing countries due to the changing structure of the economy

Some aspects of Economic Development:• An increase in real per capita GDP• Diversification of the economy from Primary production (agriculture

and natural resource extraction) to secondary and tertiary production and economic activity.

• Increased access to health services• Increased access to education.• Infustructure development enabling the creation of modern transport

and communication network• A low level of negative externalities• Freedom and social justice.

Economic Development

Human well being must improve if we are to say that the development has taken place. Economic Development is multi dimensional; that is, there are many aspects to economic development. There must be continuous economic growth, better education and health, as well as conservation of the environment.

Disadvantages of measuring success of any Economy

Economic Development

The Country must move from being a developing country to a developed one. There must be job creation. Economic development, in its simplest form, is the creation of economic wealth for all citizens in the different levels of society so that the people have access to potentially increased quality of life.

Developed Vs. Developing Countries

Economic Development

Economic Development

Underdevelopment /Developing Countries

The sources of underdevelopment in poor countries are:• Insufficiency or absence of natural resources• Lack of human capital• Attitudes and culture of people • Behaviour of elite groups in the economy• High birth rates and population growth rates • Breakdown in the rule of law

an elite is a small group of people who control a disproportionate amount of wealth or political power.

Measures of Economic Development

The Human Development Index (HDI) • The HDI was created to emphasize that people and their capabilities

should be the ultimate criteria for assessing the development of a country, not economic growth alone. The HDI can also be used to question national policy choices, asking how two countries with the same level of GNI per capita can end up with different human development outcomes. These contrasts can stimulate debate about government policy priorities.

• The Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable and have a decent standard of living. The HDI is the geometric mean of normalized indices for each of the three dimensions.

Measures of Economic Development

The HDI contains 3 elements:• Standard of living as measured by GDP per head• Life expectancy at birth• Education as measured by: (1) Adult literacy

(2) Primary, secondary and tertiary enrolment in education

Measures of Economic Development

The Human Poverty Index (HPI) The Human Poverty Index (HPI), which was introduced in 1997, is a composite index which assesses three elements of deprivation in a country - longevity, knowledge and a decent standard of living.

There are two indices; the HPI – 1, which measures poverty in developing countries, and the HPI-2, which measures poverty in OCED developed economies.

Poem On Economic DevelopmentEconomic Development deals with Sustainability

It depends on our abilityTo be able to need the needs of our future generation

We all have to make a contributionEducation is the key to success

Not just for the student but also the united nationThe skills obtained can help us to see the future

A future filled with treasureFrom developing to developed

We have changed our economy And the value in our currency

It deals with improvement and access in both health and educationEconomic growth and diversification

The United nations came up with 2 measures for developmentIt has two compartments HDI and HPI

ITS up to us if we want our economy to reach the sky radha sookram,,,,,

Summary

• Economic development is a sustainable increase in the quality of life of residence in a developing country.• The aspects of economic development are: economic

growth, diversification of the economy from Primary to secondary to tertiary economic activity, increased access to health and education services, modernised infustructure, reduced level of negative externalities, and freedom and social justice.• The human development index and the Human Poverty

Index are measures of economic development