CHAPTER 1

REAL CONCEPT OF DEVELOPMENT

TABLE OF CONTENTS

• Basic Economic Problems • Obstacles to Development

• Mixed Economic System • Stages of Economic Development
• The Meaning of Economic Development • Two Different Worlds
• Classifications of Countries • A Good Economic System
• Development and Growth
• The Objectives of Development
• Philippine Development Objectives
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

• The mixed system is a blend of free market economy and governmnet

ECONOMIC DEVELOPMENT

• Economic development is a process of improving human conditions.

CLASSIFICATIONS OF COUNTRIES

The economy of a country is measured by its gross national product (GNP) or per capita
income.
1. Highly Developed Countries
2. Intermediate Countries
3. Less Developed Countries
DEVELOPMENT AND GROWTH

• Development
• A progressive and dynamic process
• Does not stop

• Growth
• The result of the process.
• The product of development
• Visible and measurable
OBJECTIVES OF DEVELOPMENT

• In the past, the traditional objective of the less developed countries was to increase their
gross national products.
• The main focus now of development is towards the social factors.
PHILIPPINE DEVELOPMENT OBJECTIVES

• The principal target of development is the development of people.

• According to former Prime Minister Cesar Virata, the government has been committed
to attain the three basic objectives which are concerned with:
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.
OBSTACLES TO DEVELOPMENT

1. Poor nations are deficient in capital

2. Management and manpower skills are not adequate
3. Population explosion
4. Man himself.
STAGES OF ECONOMIC DEVELOPMENT

1. Traditional society
2. Pre-conditions for take-off
3. Take-off
4. Drive to maturity
TWO DIFFERENT WORLDS

NORTH SOUTH
• Rich world • Poor world
A GOOD ECONOMIC SYSTEM HAS

• Abundance
• Stability
• Security
• Economic freedom
• Growth
• Efficiency
• Justice and equity