ECO DEV 2.1

• is a process of disproportionate growth of systems.

  Development
• is a multidimensional process that generates

  economic, technological, social and institutional change to support wealth of

  nations and a comprehensive wellbeing of people in society.

  development
• is a process that generates economic, social and technical

  progress of nations.

  Economic development
• The fundamental elements of development in society are?

  the improvement of

  health, the growth of wealth, the creation of new knowledge and technology
• is fostered in appropriate social systems with high

  democracy and culture, good economic governance, efficient higher education

  system, and high innovative outputs

  Economic development
• The goal of economic development in its simplest form is to?

  create the wealth of a nation
• is measured by an annual increase in gross national product

  (GNP)

  Economic performance
• an alternative measure for economic performance is _______

  gross domestic product
• is expressed in a common currency ussually in ____

  GNP and US dollars
• reported in per-capita terms to take into account the size of a nation’s

  population

  GNP
• The World Bank now replaces GNP per capita with _______ to compare wealth among countries.

  gross national income per capita
• The World Bank defines _______ as the sum of value added by all resident producers plus

  any product taxes (less subsidies) not included in the valuation of output plus net

  receipts of primary income (compensation of employees and property income) from

  abroad.

  gross national income
• the World Bank still uses

  ________ in many other featured economic indicators

  GDP
• “To maximize income growth, environmental considerations were left to

  languish on the sidelines; the standard of living was often allowed to

  slide; large inequalities between classes, regions, and genders were

  ignored; and poverty was tolerated more than it should have been in the

  rush to generate maximum growth” ACCORDING TO?

  Basu
• During the ________, the concern of millions of people living subsistence lives in

  poverty turned the attention of development economists to _________

  rather than their ______.

  1970 AND people’s lives AND incomes
• The _____ was the defining macroeconomic

  event of the second half of the twentieth century.

  Great Inflation of the 1970s
• Over the nearly two decades it lasted, the global

  monetary system established during World War

  II was abandoned, there were four economic

  recessions, two severe energy shortages, and

  the unprecedented peacetime implementation of

  wage and price controls.

  Great Inflation of the 1970s
• It was, according to one prominent economist,

  “the greatest failure of American

  macroeconomic policy in the postwar period”

  Great Inflation of the 1970s
• By questioning whether it is the goal of development that per-capita income

  increases but poverty, inequality and unemployment are growing worse,

  HE (1969) marked the change needed in setting development objectives.

  Seers
• The goal of _______ during the period was thus not limited to

  economic growth but to concentrate on the reduction of poverty,

  inequality and unemployment

  development
• HE contributed to shift the development goals set by governments in

  developing countries to wider objectives, including improvements in income distribution,

  environment, health and education.

  Stiglitz
• ACCORDING OT THIS

  “to improve the quality of life.

  Especially, in the world’s poor countries, a better ________ generally calls for higher

  incomes— but it involves much more. It encompasses as ends in themselves better

  education, higher standards of health and nutrition, less poverty, a cleaner environment,

  more equality of opportunity, greater individual freedom, and a richer cultural life.”

  World Bank’s Development Report AND quality of life
• According to ____ (1985), the ultimate goal of development is to enhance _____, which is defined as “the freedom that a person has in terms of the choice of

  functionings, given his personal features (conversion of characteristics into functionings)

  and his command over commodities…”

  Sen AND human capabilities
• ________ is necessary but not sufficient in terms of quality of life.

  Higher income
• Under HIS

  approach, goals of economic development change from promotion of growth to

  promotion of well-being.

  SEN AND growth AND well-being