DEVELOPMENT ECONOMICS Introduction and preliminaries

This is an introduction to economics

1. DEVELOPMENT ECONOMICS

2. ECONOMIC GROWTH vs. ECONOMIC DEVELOPMENT Economic Growth is the positive change in the real output of the country in a particular span of time . Economic Development involves rise in the level of production in an economy along with the advancement of technology, improvement in living standards and so on.

3. ECONOMIC GROWTH vs. ECONOMIC DEVELOPMENT Concept: Narrow  Broad Scope : Increase in the indicators like GDP, per capita income etc. :Improvement in life expectancy rate, infant mortality rate, literacy rate and poverty rates.

4. ECONOMIC GROWTH vs. ECONOMIC DEVELOPMENT Term Short term process-- Long term process Applicable to Developed Economies Developing Economies How it can be measured ? -Upward movement in national income . -Upward movement in real national income.

5. ECONOMIC GROWTH vs. ECONOMIC DEVELOPMENT Which kind of changes are expected? Quantitative changes Qualitative and quantitative changes

6. ECONOMIC DEVELOPMENT vs. DEVELOPMENT ECONOMICS Development economics is a branch of economics that focuses on improving fiscal, economic and social conditions in developing countries. Development economics considers factors such as health, education, working conditions, domestic and international policies, and market conditions. The field also examines both macroeconomic and microeconomic factors relating to the structure of developing economies, and domestic and international economic growth.

7. What Do We Mean by Development? Three Core Values of Development Sustenance: The Ability to Meet Basic Needs Self-Esteem: To Be a Person Freedom from Servitude: To Be Able to Choose

8. The importance of Development Economics Inclusion of non-economic variables in designing development strategies Achieving the Millennium Development Goals “…One future-or none at all”

9. Common Characteristics of Developing Nations 1. Low levels of living, comprising low incomes, high inequality, poor health and inadequate education 2. Low levels of productivity 3. High rates of population growth and dependency burdens 4. High and rising levels of unemployment and underemployment 5. Significant dependence on agricultural production and primary product exports 6. Dominance, dependence, and vulnerability in international relations