DEVELOPMENT

ECONOMICS
 What is Development Economics?

• It is concerned with the

efficient allocation of existing
scarce (or idle) productive
resources and with their
sustained growth over time
(Traditional Economics)
Development Economics

Must also deal with the ECONOMIC, SOCIAL,

POLITICAL, and INSTITUTIONAL mechanisms,
both public and private, necessary to bring about
RAPID (at least by historical standards) and
LARGE-SCALE IMPROVEMENTS in levels of
living for the masses of poverty stricken,
malnourished, and illiterate peoples of Africa, Asia,
and Latin America. (Todaro and Smith. 2003)
Values in Development Economics

• Economic and social equality

• Elimination of poverty
• Universal education
• Rising levels of living
• National independence
 Values in Development Economics

• Modernization of institutions
• Political and economic participation
• Grassroots democracy
• Self reliance
• Personal fulfillment
 Social system defined

Interdependent relationships
between so-called economic
and non-economic factors.
 Non-economic factors

• Attitude toward life, work and authority

• Public and private bureaucratic, legal and
administrative structures
• Patterns of kinship and religion
• Cultural traditions
• Systems of land tenure
 Non-economic factors

• The authority and integrity of government agencies

• The degree of popular participation in development
decisions and activities
• The flexibility of rigidity of economic and social
classes
• VALUES,
• ATTITUDES and
• INSTITUTIONS
play in the overall development
process.