COURSE:

ECONOMIC DEVELOPMENT
 Economic Development

DEVELOPMENT THEORY
Topics:
1.Explanation of What Development
Means
2.Quality of Life
3.The Three Objectives of
Development
I. Pre-test / Activity:

One-Sentence Summary
• On your OneNote, write a one-sentence summary (bullet
points) of your key takeaways during the introduction and
overview of Economic Development.
 II. Learning Outcomes

1. Appreciate the concept of output and improvement in

the quality of life
 III. Content

1.Explanation of What Development Means

Because the term development may mean different things
to different people, it is important that we have some
working definition or core perspective on its meaning.
Without such a perspective and some agreed measurement
criteria, we would be unable to determine which country
was actually developing and which was not.
*Gross Domestic Product (GDP)
*Income per capita
*Gross national income (GNI)
 Gross domestic product (GDP) - is the total final output of
goods and services produced by the country’s economy,
within the country’s territory, by residents and nonresidents,
regardless of its allocation between domestic and foreign
claims.

Example ;
The New Economic View of Development
The experience of the first decades of post–World War II
and postcolonial development in the 1950s, 1960s, and early
1970s, economic development came to be redefined in terms
of the reduction or elimination of poverty, inequality, and
unemployment within the context of a growing economy.
 Development involving major changes in:
• social structures
• popular attitudes and national institutions
• acceleration of economic growth
• reduction of inequality
• eradication of poverty.
2. Quality of Life
- is the general well-being of societies, including not only
wealth and employment, but also the environment, physical
and mental health, education, recreation and leisure time,
and social belonging.
Quality of Life Indicators
Often in economics, we focus on GDP statistics.
• GDP
• Distribution of Income in society.
• Employment / Unemployment.
• Life Expectancy.
• Education Standards.
Quality of Life Indicators
• Housing.
• Air Pollution.
• Climate.
3. The Three Objectives of Development
Whatever the specific components of this better life, development in all
societies must have at least the following three objectives:
1. To increase the availability and widen the distribution of basic life-
sustaining goods such as food, shelter, health, and protection
2. To raise levels of living, including, in addition to higher incomes, the
provision of more jobs, better education, and greater attention to cultural
and human values, all of which will serve not only to enhance material
wellbeing but also to generate greater individual and national self-
esteem
3. To expand the range of economic and social choices available to
individuals and nations by freeing them from servitude and dependence,
not only in relation to other people and nation-states, but also to the
forces of ignorance and human misery
 IV. Activity

Identify the following statement in relation to quality of life

indicator.
__________________ 1. Global Warming could tip the ecological
balance in some countries with fragile eco-balance.
__________________ 2. Part-time/temporary contracts
__________________ 3. A new road may reduce congestion but
damage areas of outstanding natural beauty
__________________ 4. Basic necessity is often taken for granted in
West, a but, is big issue in the developing world
Identify the following statement in relation to quality of life
indicator.
__________________ 5. The standard and quality of shelter and
related amenities

SM Baliwag Complex, Dona Remedios Trinidad Highway, Brgy. Pagala, Baliwag, Bulacan
(+63) 927-533-0342 – (+63) 923-949-5265 admissions-nubaliwag@nu.edu.ph
__________________ 6. Quality and quantity of ‘green spaces’
__________________ 7. One simple measure is the rate of
literacy in an economy
__________________ 8. Some countries have high GDP per
capita, but some people still live in poverty.

SM Baliwag Complex, Dona Remedios Trinidad Highway, Brgy. Pagala, Baliwag, Bulacan
(+63) 927-533-0342 – (+63) 923-949-5265 admissions-nubaliwag@nu.edu.ph
__________________ 9. Frustrations due to traffic jams and
volume of vehicles on the road
__________________ 10. Dependent on health care standards,
environmental factors and cultural factors
Indicators of quality of life

•Material living conditions.

•Productive or main activity.
•Health.
•Education.
•Leisure and social interactions.
•Economic and physical safety.
•Governance and basic rights.
•Natural and living environment.
 VI. Other Reading Materials

Links
Pettinger, T., Quality of Life Indicators
https://www.economicshelp.org/blog/2445/economics/quality-of-
life-indicators/
6 November 2017
Kagan, J., Quality of Life
https://www.investopedia.com/terms/q/quality-of-life.
4 August 2019
 VII. References

Dowling, J.M. and Valenzuela, R. (2012). Economic

Development in Asia, Second Edition, Singapore: Cengage
Learing Asia Pte Ltd.
Todaro, M. & Smith, S. (2015). Economic Development,
Twelfth Edition, USA: Pearson
Mutya, R. (2017). Economics with Agrarian Reform and
Taxation, Anvil Publishing Inc.