Name: Kris Joseph C.

Lasay
Course and Year: BSA – 2
Subject: ACCTNG237 ECONOMIC DEVELOPMENT

1.What is economics central to an understanding of the problem of development?

Economics certainly is the central or the focal point in understanding the very problem of
development because it has significant changes to numerous things that makes a nation, a nation.
This gives a solid influence and brings a wind of change in the fields of the structure of the
economy, institutions (political, social, technological, and economic), process of production,
distribution, and consumption, attitudes of the people, incomes of the people, and infrastructure
When we talk about changes, it is the change, which enables an economy, to move from worse
off situations to better off situations and these changes are brought in an underdeveloped or a
developing country

2.Why is an understanding of development crucial to policy formulation in developing

nations? Do you think it is possible for a nation to agree on a rough definition of development
and orient its strategies accordingly?
In making rules in developing nations there are many things you need to look at and follow in
order to attain advances, one of which is the understand of development. The aim of any policy
is to bring about positive changes in the economy. Theories are not adapted to all countries.
Understanding of development crucial is because it makes sure that in which area the country
needs to develop and then accordingly it should formulate its policies. You can see the trend or
the relation of economics of developing.
The term development means different to different nations. to some nations, it would mean only
an increase in its GDP and per capita income and to other, it would mean provision of health and
education facilities and to some nations, it would mean some other changes. That is why
understanding of development plays a crucial part in policy formation in developing nations, to
set a standard of development by looking at annual GDP of these developing nations.
In conclusion the very act formulating a policy for a nation, requires a certain degree of clarity r
that, in which area the country needs to develop and then accordingly, it should formulate
policies .
3. Why is a strictly economic definition of development inadequate? What do you understand
economic development to mean? Provide hypothetical or real examples of situations which a
country may be developing economically but may still be underdeveloped?
A strictly economic definition of development brings a change in the attitude of people by
providing more education and health facilities, change in the status of women. Eradicates
poverty by provision of employment opportunities. Reduces income inequalities. Provides
adequate health facilities. Increases production in all the sectors of the economy whether
agriculture, industrial and tertiary sector for balanced economy. A good example of a country
that is developing economically but may still be underdeveloped is the country of Brazil. The
Latin-American nation that gets economic advances by the growing investments and
developments because of the rich potential of the Amazon jungle. There is a staggering number
of new building construction and development in the capital of Rio de Janero but outside the
walled city is a massive jungle that has been compromised to supply the raw materials of these
development in economics.

4.It has been said that ending extreme poverty and achieving genuine development are
possible but not inevitable and that this gives the study of economic development its moral and
intellectual urgency. What is meant by this? Comment and evaluate.
The passage stated above makes me think of the phrase “Nothing is constant in this world, but
changes”. Globalization will always bring economic development one way or another. The very
principle of Developmental Economics is rooted in changes, one can never make any
development without changes, and this is very true in this particular branch of Economics where
there is a thorough analysis in very cracks and crevices of social conditions of a nation that
conducive for improvement. This ideology opens us to the thought that eradicating poverty is
associated with the development of an economy by uplifting the masses, the working class and
the very poor. The eradication would be as if treating the black death. Giving the cure to the
nation’s weakest spot. National efforts would mean generating and providing employment
opportunities, raising the level of income of existing working population, more of government
policies for financial aids to the poor strata, as such measures only can lead to real development.
only a family with reasonable income can afford education and health facilities and come out of
the vicious circle of poverty.