CONCEPTS AND INDICATORS OF DEVELOPMENT

Sustainable Development

This is a concept of advancing people’s quality of life, assessing such advance in terms of economic
criteria as well as human dynamics, particularly the conservation and protection of the environment.

This is the development that meets the needs of the present without compromising the ability of future
generations to meet their own needs.

Sustainable Development addresses:

Poverty

Human Rights Violations

Sexual Prejudice

Environmental Destruction

Elements of Sustainable Development

1. Society- social institution, democratic system of government, resolving differences

2. Environment- awareness of the fragility of the environment, availability of resources

3. Economy- sensitivity to the limits and potential of economic growth and the impact on society
and environment.

4. The impact of globalisation on development- foreign trade, WTO, IMF, World Bank, Trans-
National Corporations.

Economic Development

This is the development of the production of goods and services in a country.

Indicators of Development

GNP/ capita

Industrialization

Purchasing Power Parity (PPP)

Employment levels

Economic structures such as primary, secondary and tertiary sectors

The level of local and foreign debt

Levels of foreign aid receipts

Non-economic indicators of Development

Life expectancy

Levels of education

Ratio of doctors to the population

Labor productivity

Distribution of income

Improved institutions and attitudes

Urbanization

Birth rate

Death rate

Growth and Development

Growth is the all round expansion of the economy. It can be measured in GNP which reflects the general
increases in total output. Examples of growth include advances in technology, quality of life, standard of
living education, health care etc.

Development is the qualitative concept concerned with the pattern of economic change. In order to have
development, there must be growth.

Economic Growth

Economic growth is affected by:

Rate of investment

Rate of increase in the working population

Technological development

Balance of payments

Role of government and government expenditure

Balance of Payment

Balance of Payment = (Money made+ Money Brought In) - (Money Sent Out)

If Balance of payment,

Positive- Favorable Economic Growth

Negative- Less Economic Growth

Zero- No Economic Growth

Features of underdevelopment

Poor economic performance

High rates of population growth

Low standard of living

Relatively short life expectancy

High unemployment

High crime rates

Poor educational opportunities

Considerable dependence on agriculture

High infant mortality rate

Problems of Development
Economic dualism- division of the economy into two distinct and radically different sectors

Unemployment

Size of population

Migration

Industrialization

The role of education

The role of information technology

CARICOM- problems of regional trade

Structural adjustment

FACTORS THAT PROMOTE OR HINDER DEVELOPMENT

1. Most Caribbean countries have the legacy of slavery and this has stratified the society under
factors of economic status, race, color, education, wealth and marriage. Because of this there is a
sense of inferiority and superiority among the classes which in turn hinder development.

2. Unfair discrimination other than by merit hinders development. A person should not be
discriminated against because of race, color, religion, sex, status or creed. Where such
discrimination exists, low levels of production will occur.

3. A country with high levels of crime and violence can generate a fear throughout the population.
As a result, productivity is diminished and distorted and the development is hindered.

4. Access to education and training is critical in assessing the development of a country.

5. Health care should be a priority of the government as unhealthy workers will spend less time at
work and therefore they will be less efficient than expected.

6. Technology allows for increased knowledge. Knowledge can help to promote development as
new and modern techniques can be implemented.