4.1+Economic+development

Learning Outcomes:
 * Distinguish between economic growth and economic development.
 * Explain the multidimensional nature of economic development in terms of reducing widespread poverty,raising living standards,reducing income inequalities and increasing employment opportunities.
 * Discuss the relationship between economic growth and economic development,noting that some limited economic development is possible inthe absence of economic growth, but that over the long term economic growth is usually necessary for economic development (however, it should be understood that under certain circumstances economic growth may not lead to economic development).

An introductory video: media type="youtube" key="OGO2As7elBg" width="560" height="315"





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Learning Outcome:
 * Explain that the most important sources of economic growth in economically less developed countries include increases in quantities of physical capital and human capital, the development and use of new technologies that are appropriate to the conditions of the economically less developed countries, and institutional changes.
 * Outline the current status of international development goals, including the Millennium Development Goals.

Development may also be seen as a process, in other words it is progress to achieving certain objectives, hence the UN MDGs 

UNHD Report 2010

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=<span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">And here is some interesting data (courtesy of the Economist. ) that show some success in reducing absolute poverty. =

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<span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 18px;">Have the MDGs been achieved- an update: <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 18px;">[|Source 1] <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 18px;">[|Source 2] <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 18px;">Now in 2016 we have moved onto Sustainable development goals (SDGs) =<span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Student Task: Provide examples of where Economic growth has not lead to economic development. Check [|www.hdr.undp.org/en] = =<span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Angola Qatar and South Africa may be 3 examples (why?) Can you find others? =

<span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Alternative methods of development and difficulties in measuring development.

<span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Clearly if we can't all agree on what development is then we are not going to agree on how to measure it. If we think development is a broad context, then we are going to measure it in a broader way. We might want to look at social inclusion and social cohesion. Gender equality is key to many peoples' development. Political and religious freedom might also be included. Look in your textbook and make some notes on alternative measures. <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">media type="custom" key="22500894" <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Even the experts can't agree. [|Here is the link] to a UN discussion group that I have joined which is debating how to measure development. Also here is one contributors comments on the limitations of the present HDI measurement. (note I don't agree with him but thought the ideas were interesting)

<span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">"The proof of the cake is in the eating". There must be something wrong with your methodology to see a country like the US ranking better than Canada, Sweden, Germany or France. A quick trip to these countries immediately shows that there are more inequalities, less solidarity in the first one compared to the latter 4. How can a country with 50 million without health coverage, with a declining life expectancy, etc. ranks 4th !! You must also introduce something regarding peace, because a country at war must not rank high on human development. Thanks"

<span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Here is another approach where we look at the potential for growth and development: <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">

<span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Learning Outcome: <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Explain, using examples, that economically less developed countries share certain common characteristics <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">(noting that it is dangerous to generalize as there are many exceptions in each case), including: <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">low or no savings; poverty is therefore transmitted from generation to generation,and there is a need for intervention to break out of the cycle.
 * <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Low Levels of GDP/GNI per capita
 * <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">High Levels of Poverty and existence of poverty trap.
 * <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Dependence on Agriculture
 * <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Large Urban Informal sector
 * <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">High Birth rates
 * <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Low levels of Productivity
 * <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Poverty Cycle (where poor communities are unable to invest in physical, human and natural capital due to

<span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Learning Outcome: <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px;">Explain, using examples, that economically less developed countries differ enormously from each other in terms of a variety of factors, <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px; line-height: 1.5;">Differences in LEDCs


 * <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px; line-height: 1.5;">resource Endowments
 * <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px; line-height: 1.5;">Climate
 * <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px; line-height: 1.5;">History (colonisation?)
 * <span style="font-family: &#39;Trebuchet MS&#39;,Helvetica,sans-serif; font-size: 16px; line-height: 1.5;">Politics