CHAPTER 3

THE NATURE OF ECONOMIC GROWTH

AND DEVELOPMENT
Growth-the expansion of the economy in volume of
production, trade, investment, income and
infrastructure.
-the widening of the areas of activities with effect
on a higher level of employment.
-expansion of the domestic and foreign market that
is marked by the variety of goods available to the
people.
-Increase in the mileage of roads and other means of
transportation as to reduce the isolation as to reduce
the isolation of parts of the country from one another.
Economic Development
-The growth of the gross national product (GNP)
accompanied by a redistribution of wealth among the
people.
-It is the rise of investment, production and income that
brings about better quality of life for the population.
-Is is the movement of country fron tool-based to machine-
based production with the effect of better income for the
people and the provision of improved facilities for the
society
-Sustained capital formation in the country resulting in
higher productivity and the improvement of social
institutions for efficiency in resource utilization.
Measurement of growth and
Development
1. The gross national product
2. Domestic and foreign investment
3. Employment, unemployment and underemployment
4. population growth
5. Technology transfer and change
6. The poverty line and income distribution
7. Poverty and shelter
8. poverty and malnutrition
9. Infrastructure for development
The role of Government in Development
-Government as the Central Planning Authority
-Operates by formulating a national
develpment plan via assembling and
integrating sectoral plans prepared by
government departments and local
governments with the participation of the
private sector.
-It plans the whole countrys economy
based on the provision of the Constitution
which states;
Article II, Section 9. The State shall promote just
and dynamic social order that will ensure the
prosperity of the nation and free the people
from poverty through policies that provide
 Adequate social services, promote full
employment, a rising standard of living and
an improved quality of life for all.
Section 10. The state shall promote social justice
for all.,
Section 19. The state shall develop a self reliant
and independent national economy
effectively controlled by Filipinos
Section 20. The state recognizes the
indispensable role of the private sector
Section 21. The state shall promote
comprehensive rural development and
agrarian reform.
(reduce poverty, expand employment, redistribute wealth,
improve quality of life, reform land ownership, develop the
countryside encourage investment and promote citizens’
economic control)
The working Government
1. The government budget
2. The government in business
3. Government organization of
development
4. Access to varied financing resources
5. Build operate transfer scheme
6. Infrastructure program
7. Development policy
8. Monitoring
Psychosocial factors of development
1. religion and development
2. Family values and development
3. ethnocentrism and regionalism
4. venture character and development
5. gambling and development
6. work ethics and development
7. Tax conciousness
8. Economic nationalism
9. the overseas work syndrome
10. production cooperatives
11. Conspicuous spending
12. Language in development
13. Expectations from government
14. Psychology in the bureaucracy
15. The gun society