BUSINESS ADMINISTRATION

National College of Business and Arts

Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

ECONOMIC DEVELOPMENT

PART 1: PRELIM PERIOD

1ST– 2ND WEEK
ECONOMIC DEVELOPMENT

Introducing Economic Development

• How the Other Half Live
• What Do We Mean by Development?
• Future of the Millennium Development Goals
• Comparative Economic Development
• Defining the Developing World

Definition of Economic Development

Economic Development refers to the sustained, concerted actions of policymakers and

communities aimed at improving the well-being, living standards, and economic conditions of a
region or country over time. It involves fostering economic growth, reducing poverty, and
enhancing the overall quality of life through various strategies such as infrastructure
development, education, healthcare, and the promotion of a conducive business environment.

“How the other half live”

How the other half lives by Jacob Riis is a groundbreaking work in social documentary
photography and journalism. Published in 1890, the book sheds light on the appalling living
conditions of the impoverished in New York City during the late19th Century. Riis used both text
and photographs to expose the squalid tenement housing, overcrowded neighborhoods, and the
struggles of immigrant communities.

Through vivid descriptions and images, Riis aimed to raise awareness about the stark
disparities between the wealthy and the impoverished, advocating for social reform. The book
played a crucial role in sparking a public outcry and contributing to the Progressive Era’s efforts
to address issues like tenement housing, child labor, and urban poverty.

“How the other half lives” remains a historically significant work, serving as a catalyst for social
change and inspiring subsequent generations to engage in issues of inequality and social
justice.

What do we mean by development?

“Development” is a broad term that encompasses progress, growth, or improvement in various

aspects of life. In different contexts, it can refer to economic development, social development,
technological advancements, personal development, or the overall improvements of living
standards.

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 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

Future of the Millennium Development Goals

The Millennium Development Goals (MDGs) were a set of eight international development goals
established following the Millennium Summit of the United Nations in 2000. They were aimed at
addressing issues such as poverty, hunger, gender equality, education, and healthcare by the
target year 2015.

Since then, the MDGs have been succeeded by the Sustainable Development Goals (SDGs),
which were adopted in 2015 and set broader and more comprehensive objectives for global
development by 2030. The SDGs build on the progress and lessons learned from the MDGs.

The transition from MDGs to SDGs signifies an ongoing commitment to addressing global
challenges and improving the well-being of people worldwide.

(Official statements from international organizations like the United Nations)

Comparative Economic Development

Involves analyzing and comparing the economic growth, progress, and performance of different
countries or regions. This analysis often considers various indicators such as GDP (Gross
Domestic Product) per capita, income distribution, employment rates, education, healthcare,
and infrastructure. Understanding the variations and similarities in economic development helps
identify factors contributing to success or challenges, facilitating the formulation of effective
policies for sustainable development.

GDP – Gross Domestic Product is a key indicator in economics that measures the total market
value of all final goods and services produced within a country over a specific period of time.

This includes everything from manufacturing products, providing services, to construction

activities.

For instance, if a country produces 500 billion worth of goods and 300 billion worth of services in
a year, the GDP for that year would be 800 billion.

Defining the Developing World

The term “developing world” refers to countries or regions that are in the process of
industrialization, experiencing economic growth, and undergoing social changes. These nations
typically ace challenges such as lower income levels, less advanced infrastructure, and a range
of socio-economic disparities. The term is often used as an alternative to terms like “third world”
or “less developed countries”.

It's important to note that the concept of the developing world is dynamic, and the classification
of countries can change over time as they progress economically and socially. The United
Nations and other organizations may use terms like ‘developing countries” or “low- and middle-
income countries” to describe nations in this category. The criteria for classifying countries as
developing can include factors like GDP per capita, life expectancy, education levels, and
infrastructure.