ECON O M I C

R O W T H A N D
G C E
I A L J U S T I
SOC
 Economic growth
 refers to the goods
and services
produced by
economic
development.
 m i c
n o nt
Eco lopme
Is a progressive process
e of improving human
dev conditions, such as the
reduction or elimination of
poverty, unemployment,
illiteracy, inequality, disease
and exploitation.
CLASSIFICATION OF COUNTRIES

 Highly developed
countries

 Intermediate countries

 Less developed countries

 HIGHLY DEVELOPED COUNTRIES
Country Human Development Population 2019
Index
Norway 0.953 5,378,857

Switzerland 0.944 8,591,365

Australia 0.939 25,203,198

Ireland 0.938 4,882,495

Germany 0.936 83,517,045

Iceland 0.935 339,031

Sweden 0.933 10,036,379

Hong Kong 0.933 7,436,154

Singapore 0.932 5,804,337

Netherlands 0.931 17,097,130

 RWA
NO
Y
GA
S
 INTERMEDIATE
COUNTRIES

•Austria
•Costa Rica
•Finland
•Ghana
•Ireland
•Japan
•Liechtenstein
•Malta
•Mexico
•Mongolia
 LESS DEVELOPED
COUNTRIES
Rank Country Continent

1 Afghanistan Asia

2 Angola Africa

3 Bangladesh Asia

4 Bhutan Asia

5 Burkina Faso Africa

6 Burundi Africa

7 Cambodia Asia

Central African
8 Africa
Republic

9 Chad Africa

10 Comoros Africa
 ECONOMIC GROWTH
MODEL ECONOMIC GROWTH
MODEL
 Show the relationship of inputs and outputs.
These are expressed in the form of graphs, tables,
mathematics, or words.

Popular growth model

Ricardian model
Harrod-Domar model
Kaldor model
 Ricardian model
The author is David Ricardo, a
prominent classical economist.

The key factor is land. These

means agricultural is the first
priority in the attainment of
economic growth.
Kaldor Model
According to Nicholas
Kaldor, the author of the
model, the key factor is
technology which is
embodied in physical
capital.
Harrod-Domar model
Developed by Sir Harrod of England and
professor Domar of America.
 It’s key factor is physical capital like
machines, buildings, equipment,
and so forth.
 This model stated that the input is
capital, and its efficiency is determined by
the number of output it can produce.
 Characteristic of the poor countries
 Subsistence agricultural economy
 lower per capita income
 High birth rate
 High illiteracy
 Poor health
 Negative attitudes, values and
institutions
 Inefficient public administration
 High rate of unemployment
The Vicious Cycle of Poverty
 Malthusian Theory
◦ According to Thomas Malthus, a religious minister and English classical
economist, authorized essay on the principle of population published 1798.

◦ The Malthusians theory - states that unchecked breeding of men

causes population to grow by geometric progression whereas food
supply can not grow rapidly or more than in an arithmetic ratio.
 Principles of Economic planning
◦ 1. Planning must be realistic.
◦ 2. Planning must be based mostly on the felt of the masses.
◦ 3. Planning most come from below.
◦ 4. Planning must be multisectoral.
◦ 5. Planning must be flexible.
◦ 6. Planning must have the full support of top government officials.
◦ 7. Planning must start with simple projects.