Economic Development

What is Economic Development?

 Economic Development refers to the improvement in the quality of life in a
country for its citizens. Economic Development is QUALITATIVE.

Growth but no Development

 There can be growth without development. This is when the country is
experiencing an increase in the value of goods and services produced but the
profits are not being used to improve the country for citizens well being.

What is the Human Development Index?

 The Human Development Index (HDI) is a measure of human development in a
country based on social and economic factors such as life expectancy at birth,
health of citizens, education and what levels are accessible such as primary,
secondary and tertiary level education and the standard of living.

The role of HDI in economic development

 HDI is used to measure economic development.

Other Factors used to measure Economic Development

 Infant mortality
 Human poverty index
 Literacy rate

Economic Development can lead to economic growth.

 Economic Development can lead to economic growth since, a better quality of
life for citizens can fuel development of workers in a country in terms of skills,
education and experience.
Economic Growth can lead to economic development
 Economic growth combined with employment opportunities will make it
possible for parents to afford an education for their children. This will result in
an educated and knowledgeable workforce which will lead to increased
productivity and innovation in the workplace which will trickle down to benefit
the country.

What is Human Capital?

 Human capital refers to knowledge, education, skills, training and experience
that employee have. This is valuable to an organization since it will contribute
to increased productivity and innovation.

Role of education in economic growth & development

 It increases productivity since employees will be more knowledgeable about
their jobs;
 It encourages innovation in the workplace thus employees will have new ideas
to improve the workplace and the organisation's goods and services which can
open up opportunities for the business;
 Encourages entrepreneurship since citizens will have more knowledge about
starting their own business which can contribute to adnation’s prosperity.

Role of education in economic growth & development

 Education can encourage technological progress which is also beneficial to
businesses since it contributes to productivity;
 Education contributes to economic progress since knowledge can be shared
leading to economic growth;
 Education also encourages social progress. Citizens will qualify for better paid
jobs, open their own business, feel self motivated and confident to achieve
goals in life. Educational achievements will be the result of hard work and
determination which will encourage human development.