Economic Development Essay

What does one mean by Economic Development today? How has this concept changed over the years?

Economic development implies a qualitative change in what or how goods and services are produced through shifts in resource use, production methods, workforce skills, technology, information, or financial arrangements. A regional economy can grow without changing if it simply produces more of the same – same goods and services – in the same manner. For example, an increase in the population of an area will mean more income and more demand-driven growth even absent qualitative changes in the economic development environment. Development implies something more. Development and growth complement each other in the long run, although in the short run development will tie up resources that could otherwise feed more immediate economic growth.

(Flammang, 1979.)

According to Sen (1981, 1985, 1995) development is concerned with humans experiencing better life, the focus ought to be on the length and quality of that life, or on the “entitlements”, “capabilities” and “functioning’s” of persons. Development Economics is arguably the most fundamental field within the discipline of Economics. Economic development is the primary objective of the majority of the world’s nations. Development depends upon the deployment of a region’s building blocks – labour, financial capital, facilities and equipment, know-how, land, other physical resources, and public and private infrastructure. Development is both a physical reality and a state of mind for attaining a better life. Three basic core values are a practical guideline for understanding development which includes Sustenance, Self-esteem and Freedom. These three objectives of Development, Increases availa...

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... unhealthy and poor. So, later Human capital theory of the 1970’s stated that quality of inputs determines development. It was then realized that economic development should be environmentally friendly so that it is sustainable .Other factors were also considered including freedom, gender equality. Development economics is not value neutral. Historical, institutional factors, nepotism need to be considered. Development can have many definitions: freedom (Singapore doesn’t have it but developing, literacy (Saudis has low), democracy (china doesn’t have it but fastest developing country in the world, sanitation, sustainability, low tax (but Norway and Finland have highest rates – but government gives it all back). There is no one answer, some may be wrong, some may be more right than wrong. Economic Development theories provide us with many ideas but not many rules.