NOTRE DAME OF TACURONG COLLEGE

City of Tacurong

Course Syllabus

Course Number : AEC 212

Course Title : Economic Development
Credit : 3 units
Prerequisite :

Prepared by:

Elmer D. Valera
Teacher
 MISSION
“The mission of Notre Dame of Tacurong
College is to produce highly compete n t
graduates imbued with Christian and desirable
Filipino values, sense of social responsibility
and integrity; and to assume active leadership
role in the locality and academic community
through relevant and responsive programs,
creative organizational strategies and pastoral
collaboration with the local church.”
VISION
“The Notre Dame of Tacurong College,
a Catholic school, envisions to be a leading
institution in Central Mindanao in terms of
quality education, development programs
and updated technology in consonance with
its commitment to a dynamic and
transformational leadership role in the
society it serves.”
CORE VALUES
E – Excellence
X – Christ(Xt)-centeredness
C – Commitment
E – Empowerment
L – Leadership
Specifically, NDTC:
1. Believes in EXCELLENCE as significant and vital element in the success of any quality
undertaking;
2. Believes in the development of CHRIST-CENTEREDNESS as being deeply rooted in Christ
Jesus and with the passion and spirit for evangelization;
3. Believes in COMMITMENT as an indispensable requirement for a dedicated service;
4. Believes in EMPOWERMENT of people as instruments for integral development; and,
5. Believes in LEADERSHIP that nourishes and transforms people so they can achieve their
own goal and that of the organization.
I.COURSE DESCRIPTION
This course offers an in-depth exploration of economic development, focusing
on the theories, policies, and practices that drive the growth and transformation of
economies, particularly in developing regions. Students will critically examine
historical and contemporary issues related to economic development, gaining
insights into the challenges and opportunities faced by nations striving for sustained
progress. The course integrates economic theories with practical applications,
emphasizing the role of institutions, policies, and globalization in shaping
development outcomes.
II.GENERAL OBJECTIVES
A. Develop a comprehensive understanding of various economic development theories, including
classical, neoclassical, structuralist, and modernization theories.
B. Analyze the factors influencing economic growth in developing economies, considering the role
of human capital, technological progress, and institutional frameworks.
C. Learn to measure and interpret key development indicators, such as GNP per capita, the Human
Development Index (HDI), and other relevant metrics.
D. Investigate the causes and consequences of poverty, explore strategies for poverty alleviation,
and analyze the dynamics of income distribution and inequality through the economic concepts.
E. Understand the critical role of institutions in economic development, including the impact of
governance, rule of law, and the importance of institutional reform.
F. Examine the relationship between international trade and development, exploring trade policies
and their implications for economies in the process of development.
G. Critically assess the role of foreign aid and development assistance in shaping the economic
trajectory of developing nations, considering challenges and effectiveness.
H. Investigate strategies for industrial development and urbanization trends, exploring the
challenges and opportunities associated with these processes.
III. COURSE REQUIREMENTS AND POLICIES
A.Regular Attendance

The student should avoid absences beyond the allowable number of absences as per Student Handbook in
order not to be dropped from this subject.
ECONOMIC
DEVELOPMENT

Elmer D. Valera
Part One:
Development Concepts
and Principles
• Real Concept of Development
• Ideas and Theories of Development
• Determinants of Economic
Development
• Measurements of Economic Growth
Chapter 1:
Real Concept of
Development
A better quality of life has been the
objective of societies and nations.

-Plato, the Greek Philosopher, designed an

ideal state in his book, The Republic. He
proposed common ownership of properties as
a general rule.
Basic Economic
Problems
Every nations, rich or poor, has economic
problems. However, these are more serious
and widespread in poor countries.

The economic system of any nation -United

States or Uganda- has three basic economic
problems:
1. What goods are to be produced?
2. How are the goods produced?
3. For whom are the goods produced?
Mixed Economic System
• Pure economic system do not exist anymore.
• Communism and Socialism.
China and Russia
• Capitalism and Socialism
Philippines, Japan, and United States.

The mixed system is a blend of free market economy and government

intervention.
Due to imperfections of the market system, and the presence of less
fortunate members of society, the government has to interferes in market
forces.
Mixed Economic System
• Pure economic system do not exist anymore.
• Communism and Socialism.
China and Russia
• Capitalism and Socialism
Philippines, Japan, and United States.

The mixed system is a blend of free market economy

and government intervention.
Due to imperfections of the market system, and the
presence of less fortunate members of society, the
government ha sto interferes in market forces.
 The Meaning of Economic Development
Development is a progressive process. It involves the
interactions of the different factors.

Example: The increasing the harvest of Palay per

hectare. (what do you think are the necessary inputs
combined?)

Economic Development is a progressive process of

improving human conditions, such as the reduction or
elimination of poverty, unemployment, illiteracy,
inequality, disease, and exploitations.
 Checkpoint Question:
Question #1: Which of the following economic sy stems is
characterized by private ownership of the means of production, free
market competition, and minimal government intervention?
A Capitalism

B Socialism

C Communism

D Feudalism

E Mercantilism
 Checkpoint Question:
Which of the following economic systems is characterized by private
ownership of the means of production, free market competition, and
minimal government intervention?
A Capitalism

B Socialism

C Communism

D Feudalism

E Mercantilism
 Checkpoint Question:
Question #2:In which economic system does the government have
significant control over the means of production, and there is a focus
on social equality and wealth distribution?
A Feudalism

B Socialism

C Mercantilism

D Capitalism

E Communism
 Checkpoint Question:
Question #2:In which economic system does the government have
significant control over the means of production, and there is a focus
on social equality and wealth distribution?
A Feudalism

B Socialism

C Mercantilism

D Capitalism

E Communism
 Checkpoint Question:
Question 3: Which economic system emphasizes communal
ownership of the means of production, with the goal of achieving a
classless and stateless society?
A Feudalism

B Socialism

C Mercantilism

D Capitalism

E Communism
 Checkpoint Question:
Question 3: Which economic system emphasizes communal
ownership of the means of production, with the goal of achieving a
classless and stateless society?
A Feudalism

B Socialism

C Mercantilism

D Capitalism

E Communism
Classifications of Countries
The economy of country is measured by its gross
national product (GNP) or per capita income. The
basis of comparison is the economy of the highly
developed countries, usually the United States.

-2/3 of the countries of the world are poor. Millions

of people in these places live on income averaging
$70 a year.

In the year 1976, there were 34 low-income

countries in the world.
Classifications of Countries
Countries which are backward, underdeveloped, agricultural developing or
less developed are generally considered poor nations.
Here are examples of classifications of some countries based on their
economic developments:
Highly developed countries
• United states Russia Australia
• Japan Sweden Israel
• France West Germany
• Denmark Canada
Intermediate Countries
• Argentina Austria South Africa
• Cuba Saudi Arabia Venezuela
• Libya Singapore
• Spain Poland
Less Developed Countries
• Kenya Honduras Uganda
• Somalia Peru Vietnam
• Tanzania India
Development and Growth
Development is a progressive and dynamic process.
Growth is the result of a process.

Example:
Modern methods of planting tobacco involve a
process, and this is development itself. The result is
more and better harvests, and this is growth.
 Growth without Development
Not a few less developed countries are apparently progressive.
They have modern b ui ldi ngs and well- developed frui t
plantations. Their many corporations are very profitable.
Example:
In the Middle East which have experienced rapid economic
growth due to their incomes from oil. They have been able to
construct modern buildings, and other symbols of high living .
However there are no significant institutional changes in their
education, public administration, and health.
 Objectives of Development
The traditional national objective of the less developed countries
was to increase their gross national products.
According to prime minister Cesar Virata government has been
committed to attain the three basic objectives:
1. The attainment of economic stability
2. The equitable distribution of the fruits of economic
development; and
3. The achievement of total human development for every
Filipino.
 Stages of Economic Growth
The development of nations encompasses an evolutionary process
from the primitive to the modern societies.

-One approach is the stages of economic growth based on the

exchange systems. That is from the barter economy to cash
economy, and finally to a credit economy.
 The Doctrine of Rostow
Many other studies have been conducted on the stages of
economic growth. However, the work of Professor W. W.
Rostow, an American economic historian, appears to be most
popular. He wrote the, Stages of Economic Growth. It is based on
the Doctrine of Rostow, from underdevelopment to development
passes through several stages:
1. Traditional Society
2. Pre-conditions for take-off
3. Take-off
4. Drive to maturity
5. Age of high mass consumptions
Two Different Worlds
The unfair distribution of global wealth and income has
created two different worlds.
Rich
North
The rich world is called North while the
poor world is the South. The North has
been richer. More than 90 percent of the
manufacturing industry is located in the
North.
Poor
South
The countries of the South share a common
situation. They are economically dependent on
the North. They feed the factories of the North
with their raw materials and labor. They are the
consumers of the finished products of the North.
 The Doctrine of Rostow
The members of the affluent society enjoy all the goods and
services that their money can buy.
o Spend to impress their peer
o Enhance their prestige
o Social Status
Their high positions in society demand appropriate status
symbols like elegant cars, expensive imported clothes, mansions,
and rare diamonds and necklace.
 Checkpoint Question:
Question 1: What is the basis of comparison for measuring the
economy of a country?

A Gross domestic product (GDP)

B Gross national product (GNP)

C Per capita income

D Consumer price index (CPI)

E Unemployment rate
 Checkpoint Question:
Question 1: What is the basis of comparison for measuring the
economy of a country?

A Gross domestic product (GDP)

B Gross national product (GNP)

C Per capita income

D Consumer price index (CPI)

E Unemployment rate
 Checkpoint Question:
Question 2: How many countries were considered low-income in the
year 1976?

A 20

B 34

C 50

D 60

E 75
 Checkpoint Question:
Question 2: How many countries were considered low-income in the
year 1976?

A 20

B 34

C 50

D 60

E 75
 Checkpoint Question:
Question 3: What is the classification of countries like the United
States, Russia, and Australia based on their economic development?

A Highly developed countries

B Intermediate countries

C Less developed countries

D Developing nations

E Underdeveloped nations
 Checkpoint Question:
Question 3: What is the classification of countries like the United
States, Russia, and Australia based on their economic development?

A Highly developed countries

B Intermediate countries

C Less developed countries

D Developing nations

E Underdeveloped nations
 Checkpoint Question:
Question 4: Which countries fall under the category of "Intermediate
Countries" based on economic development?

A Kenya, Honduras, Uganda

B Argentina, Austria, South Africa

C Somalia, Peru, Vietnam

D Japan, Sweden, Israel

E Denmark, Canada
 Checkpoint Question:
Question 4: Which countries fall under the category of "Intermediate
Countries" based on economic development?

A Kenya, Honduras, Uganda

B Argentina, Austria, South Africa

C Somalia, Peru, Vietnam

D Japan, Sweden, Israel

E Denmark, Canada
 Checkpoint Question:
Question 5: According to the provided information, what is the result
of the development process in the context of planting tobacco?

A Economic stability

B Growth

C Equitable distribution of fruits

D Total human development

E Modern buildings
 Checkpoint Question:
Question 5: According to the provided information, what is the result
of the development process in the context of planting tobacco?

A Economic stability

B Growth

C Equitable distribution of fruits

D Total human development

E Modern buildings
A Good Economic System
It is responsible for improving economic conditions of the people.
The economic system is measured by the following criteria:
v abundance
v stability
v security
v economic freedoms
v growth
v efficiency
v justice and equity