PHASES OF ECONOMIC

DEVELOPMENT
Economic development

 Is the process by which a

nation improves the
economic,political,and
social well being of its
people.
 Economic Development can be defined
as efforts that seek to improve the
economic well-being and quality of life
for a community by creating and/or
retaining jobs and supporting or
growing incomes and the text base.
 In general, economic development is usually
the focus of federal, state, and local
governments to improve our standard of
living through the creation of jobs, the
support of innovation and new ideas, the
creation of higher wealth, and the creation of
an overall better quality of life.
 Economic development is often
defined by others based on what it
is trying to accomplish. Many times
these objectives include building or
improving infrastructure such as
roads, bridges, etc.; improving our
education system through new
schools; enhancing our public safety
through fire and police service; or
incentivizing new businesses to
open a location in a community.
 Economic development often is categorized
into the following three major areas:
 Governments working on big economic
objectives such as creating jobs or growing an
economy.
 Programs that provide infrastructure and
services such as bigger highways, community
parks, new school programs and facilities,
public libraries or swimming pools, new
hospitals, and crime prevention initiatives.
 Job creation and business retention through
workforce development programs to help
people get the needed skills and education
they need.
5 phases of development
.MALTHUSIAN

 The concept of the Malthusian Trap was

proposed by Thomas Robert Malthus in
1798. The Malthusian Trap or Malthusian
Theory argues that gains in food
production lead to an increase in
population, which results in food
shortages as the ever growing population
takes over land meant more crop
production.
The positve and positve
effect of malthusian
>Positive effect
There is a positive effect on the stsndard of
living to the growth rate of population
EXAMPLE:
Urban communities are more specialized
compared to rural communities
>Negative effect
>The size of population negatively affects
the standard of living of the people
>Goverment(Local Economic
Development(LED)
 An approach towards economic
development which allows to
achieve sustainable economic
growth and development .
 Support the information of
partnership between local and
national institutions towards
strategic implementations.
A la kuznets

 Proposed by simoun kuznets

 The existence pattern of
behaviour, Between
economic growth and
environmental degration
consistent with the
environmental kuznets
curve(EKC) hyphotesis.
.Kuznet curve
>implies that as a nation undergous
industrialization of agriculture the center of the
nation economy will shift to the cites.
.Human Capital Based

>Is measure of the economic

value of an employee’s skill set.
>Refers to the knowledge,skill
sets and motivation that
peoplehave,which provide
economic value.
>It could be investedin through
eduaction,training and
enchanced benefits that lead to
an improvement in the quality
and level of production.
.Post Demographic Transition

>Proposed in 1929 by Warren

Thompson
>is the transition from high birth and
death rate lower birth and date rate
as the country developed from pre-
industrial to an industrialized
economic system
>fertility rate decreases when child
mortality is low ,and is weakly
dependent in Gross Domestic Product
(GDP)
Why is economic
development
important?(10
points)
 What are the five
phases of
economic
development?(2
points each)