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DEVELOPMENT ECONOMICS

Can there ever be a single, Unified theory of

SUBMITTED TO:
Mrs. Mariyam Hasib
SUBMITTED BY:
Sidra Pervez
Registration # 2406

Development?

THE

TERM

"ECONOMIC DEVELOPMENT,"

TYPICALLY REFERS TO IMPROVEMENTS IN A

VARIETY OF INDICATORS SUCH AS LITERACY RATES, LIFE EXPECTANCY, AND POVERTY


RATES

ETC.

MANY

ECONOMISTS

HAVE

PRESENTED

SEVERAL

THEORIES

OF

DEVELOPMENT AND THERE IS LOT OF CRITICISM ON EVERY THEORY AS WELL.

ALL

FOUR THEORIES OF ECONOMIC DEVELOPMENT HAVE THEIR OWN IMPORTANCE

AND FOCUSES ON ASPECTS OF THE DEVELOPMENT PROCESS IN LOW-INCOME


COUNTRIES. ITS FOCUS IS ON METHODS OF PROMOTING ECONOMIC GROWTH BUT ALSO
OF REALIZING INDIVIDUAL POTENTIAL FOR THE MASS OF THE POPULATION, FOR
EXAMPLE, THROUGH HEALTH AND EDUCATION AND WORKPLACE CONDITIONS,
WHETHER THROUGH PUBLIC OR PRIVATE CHANNELS.
INVOLVES

THE

CREATION

OF

THEORIES

AND

THUS, DEVELOPMENT ECONOMICS


METHODS

THAT

AID

IN

THE

DETERMINATION OF TYPES OF POLICIES AND PRACTICES AND CAN BE IMPLEMENTED AT


EITHER

THE

DOMESTIC

OR

INTERNATIONAL

LEVEL.

THIS

MAY

INVOLVE

RESTRUCTURING MARKET INCENTIVES OR USING MATHEMATICAL METHODS LIKE


INTER-TEMPORAL OPTIMIZATION FOR PROJECT ANALYSIS, OR IT MAY INVOLVE A
MIXTURE OF QUANTITATIVE AND QUALITATIVE METHODS.
FIELDS

OF

ECONOMICS,

APPROACHES

IN

UNLIKE

DEVELOPMENT

IN MANY OTHER

ECONOMICS

MAY

INCORPORATE SOCIAL AND POLITICAL FACTORS TO DEVISE PARTICULAR PLANS.

THERE CANT BE A SINGLE, UNIFIED THEORY OF DEVELOPMENT BECAUSE

LINEAR

STAGE

OF

GROWTH

MODEL

FOCUSES

ON

THE

ACCELERATED

ACCUMULATION OF CAPITAL, THROUGH THE UTILIZATION OF BOTH DOMESTIC


AND INTERNATIONAL SAVINGS TO PROMOTE ECONOMIC GROWTH WHEREAS IN
STRUCTURAL CHANGE THEORY, FOCUS IS ON SHIFT OF SURPLUS LABOR FROM
RUAL TO URBAN AREAS.

THUS

THE COUNTRIES CANT FOLLOW ONE THEORY BECAUSE THE CONDITION

AND THE ECONOMY OF EVERY COUNTRY IS DIFFERENT LIKE SOME COUNTRIES


ARE RICH IN CAPITAL BUT HAVE SHORT OF LABOR AND VICE VERSA.

INTERNATIONAL

DEPENDENCY THEORY IS ALSO NOT APPLICABLE FOR ALL

COUNTRIES BECAUSE SOME COUNTRIES ARE SO POOR THAT THEY CAN BARELY

AFFORD THE BASIC NEEDS OF THE PEOPLE AND ARE UNABLE TO SAVE AND
INVEST IN FOREIGN AFFAIRS.

THUS IF THIS THEORY IS THE FINAL THEORY THEN

IT CANT BE APPLICABLE IN SUCH POOR COUNTRIES.

PER

CAPITA

GROSS DOMESTIC PRODUCT (GDP

PER HEAD) IS USED BY MANY

DEVELOPMENTAL ECONOMISTS AS AN APPROXIMATION OF GENERAL NATIONAL


WELL-BEING.

HOWEVER,

THESE

MEASURES

ARE

CRITICIZED

AS

NOT

MEASURING ECONOMIC GROWTH WELL ENOUGH, ESPECIALLY IN COUNTRIES


WHERE THERE IS MUCH ECONOMIC ACTIVITY THAT IS NOT PART OF MEASURED
FINANCIAL

TRANSACTIONS

(SUCH

AS

HOUSEKEEPING

AND

SELF-

HOMEBUILDING), OR WHERE FUNDING IS NOT AVAILABLE FOR ACCURATE


MEASUREMENTS TO BE MADE PUBLICLY AVAILABLE FOR OTHER ECONOMISTS
TO USE IN THEIR STUDIES.

THUS

IT IS IMPOSSIBLE TO MAKE ONE SINGLE THEORY BECAUSE THE CONDITIONS,

ECONOMY, SOCIAL SET UP AND POLITICAL STABILITY VARY FROM COUNTRY TO


COUNTRY.