BAGON, Jerome L.

Notes in Econ Dev

3 videos in LMS achieved by rapid

industrialization of the
Economic Development and Overview
country at the expense of
ECONOMIC DEVELOPMENT- is the process in agriculture and rural
which a country’s economy becomes more development.
advanced- richer and more developed. We use  Implies sustained annual
the term mainly for developing or emerging increase in GNP (Gross
economies. National Product) or GDP
(Gross Domestic Product) at
ECONOMIC DEVELOPMENT- generally refers to rates varying between 5 to
the sustained, concerted actions of 7 percent or more.
policymakers and communities that promote b. Growing economy approach
the standard of living and economic health of a  This approach defines
specific area. development including
ECONOMIC DEVELOPMENT- may be defined as improvements in MATERIAL
a selective attack on the worst forms of poverty. WELFARE especially for
persons with lowest income
ECONOMIC DEVELOPMENT- implies the process and ERADICATION OF MASS
of higher level of productivity in all sectors of POVERTY with the
economy. availability of resources and
It is a process of stepping up the rate of their distribution.
capital formation that is needed for rapid  HUMAN BEINGS are at the
economic development. center of economic
development.
Economic development depends on TWO SETS
OF FACTORS

1. Economic- In the theory of economic 2. Non-Economic – present in a society are

development 2 MAIN APPROACHES IN
THE CONCEPT OF ECONOMIC
DEVELOPMENT ARE:
a. Traditional Approach
 Traditional approach to
economic development
policies have been
developed from the
perspective of what was
necessary to attract and
keep businesses in local
communities.
 This approach defines
development strictly in
economic terms.
 A long run expansion in
production was to be
the elements which have no direct
effect upon the economy of the
country.
The Non-Economic factors relate to
socio-cultural and political changes in
the society which either lead to
economic growth or create hindrances
to growth
UNDERDEVELOPMENT – takes place when
resources are not used to their full socio-
economic potential. It results that local or
regional development, is slower
ECONOMIC DEVELOPMENT- is a policy
intervention endeavor with aims of economic
and social well-being of people. It results that
BAGON, Jerome L.
Notes in Econ Dev

local or regional development, is slower in most access to housing and healthcare. As an

cases than it should be. economy develops, so does the population’s
average life expectancy. In the past we included
UNDERDEVELOPMENT
people’s access to a telephone, we now focus
UNUTILISED & UNEXPLOITED on Internet access.

UNDERUTILIZED NATURAL

MANPOWER RESOURCES FEATURES OF ECONOMIC DEVELOPMENT

Co-existence of Unutilized and underutilized 1. Literacy rate
manpower and Unexploited natural resources 2. Infrastructure
3. Internet access
DEVELOPING ECONOMIES- Of these
4. Academic level
underdeveloped economies, countries which
5. Standard of living
show the tendency of high growth rate are
6. Life expectancy
called Developing Economies.
7. Access to good quality healthcare
ECONOMIC DEVELOPMENT is the development 8. Access to decent housing
of economic wealth of countries or regions for 9. Population shift from farming to
the well-being of their inhabitants industry and then services

ECONOMIC GROWTH- is a phenomenon of

market of market productivity and rise in GDP
South Korea’s ECONOMIC DEVELOPMENT since
Economic growth is one aspect of the process 1960 has been remarkable.
of economic development.
In 1960, it was among the ten poorest countries
Development is closely bound up with in the world. There was starvation, illiteracy was
the evolution of capitalism and the high, and it had low life expectancy.
demise of feudalism.
ECONOMIC DEVELOPMENT- is also The country was poorer than the Democratic
considered as a static theory that Republic of the Congo.
documents the state of an economy at Today, South Korea is a developed country. It is
a certain time. now Asia’s 4th largest economy.
Economic development is a term that
economists, politicians, and others have Samsung, Hyundai and LG Electronics, three
used frequently in the 20th century. multinational South Korean companies, are
Modernization, Westernization and today households’ names.
Industrialization are other terms people Recommendation for improvement
have used while discussing Economic
Development
ECONOMIC DEVELOPMENT has direct
relationship with the environment and
environmental issues.

ECONOMIC DEVELOPMENT- is not just about

money. It includes literacy rates, infrastructure,