A family in a developed (rich) country (e.g.

lives in the US)

• 4 members (father, mother and 2 children)

• An annual income of over $50,000.
• Live in a comfortable house with a small yard or garden, two
cars, a separate bedroom for each of the two children. It would
be filled with numerous consumer goods, electronics, and
electrical appliances, many of which were manufactured outside
in countries as far away as South Korea and China. Examples
might include computer hard disks made in Malaysia, DVD
players manufactured in Thailand, garments assembled in
Bangladesh, and mountain bikes made in China.
 A family in a developed (rich) country
(e.g. lives in the US)

• There would always be three meals a day and plenty of

processed snack foods, and many of the food products would
also be imported from overseas: coffee from Brazil, Kenya, or
Colombia; canned fish and fruit from Peru and Australia; and
bananas and other tropical fruits from Central America.
• Both children would be healthy and attending school. They could
expect to complete their secondary education and probably go
to a university, choose from a variety of careers to which they
might be attracted, and live to an average age of 78 years.
 A family in a developed (rich) country
(e.g. lives in the US)

• This family, which is typical of families in many rich nations,

appears to have a reasonably good life.

• The parents have the opportunity and the necessary education

or training to find regular employment; to shelter, clothe, feed,
and educate their children; and to save some money for later
life.
 A family in a developed (rich) country
(e.g. lives in the US)
For the children in this family:
In the present:
Education, health and food systems are of high standards

In the future:
improve the systems (no need for system changes).
This is economic growth
 A family in a developing (poor) country (e.g. lives in
Africa)

• More than 8 members (father, mother,6 children, two

grandparents, some aunts and uncles )
• Annual income $1000
• Live in a poorly constructed one or two-room house as tenant
farmers on a large agricultural estate owned by an absentee
landlord who lives in the nearby city.
• The father, mother, uncle, and older children must work all day
on the land.
 A family in a developing (poor) country (e.g. lives in
Africa)

• The adults cannot read or write.

• The children attend school irregularly and cannot expect to
proceed beyond a basic primary education.
• Teachers in school are regularly absent.
• They often eat only two (and sometimes just one) meals per
day; the food rarely changes, and the meals are rarely sufficient
to alleviate the children’s persistent hunger pains.
 A family in a developing (poor) country (e.g. lives in
Africa)

• The house has no electricity, sanitation, or fresh water supply.

• Sickness occurs often, but qualified doctors are far away in the
cities
• The work is hard, the sun is hot
 A family in a developing (poor) country (e.g. lives in
Africa)

For the children:

In the present:
wrong Education, health and food systems
In the future:
change systems (structural change or economic development)
and improve (economic growth)
 The Main 3 Dimensions of Development

1. The Health Dimension

2. The Education Dimension
3. The Income Dimension
All are combined in an index called: The Human Development Index HDI
For Egypt in 2020:
HDI = 0.548
Rank: 116
(1 Norway, 2 Ireland, 6 Germany, 13 UK, 17 US, 19 Israel, 189 Niger)
 Features of Underdevelopment
1. Lower levels of living and productivity
2. Lower levels of human capital
3. Higher levels of inequality and absolute poverty
4. Higher population growth rates
5. Greater social fractionalization
6. Larger rural populations but rapid rural-to-urban migration
7. Lower levels of industrialization
8. Adverse geography
9. Underdeveloped financial and other markets
10. Poor institutions and external dependence
 Economic Development: A definition

economic growth that is realized (achieved)

through a
structural change undertaken by citizens
 Economic Development: A definition

Concepts
Theories
Features of LDCs
Policies
Poverty – Population – Human Capital – Agriculture – Foreign trade