econ dev

• Poor person

  Has less income, wealth, goods, or services than a "rich" person
• Gross Domestic Product (GDP)

  Gross income = total market value per capita, an indicator of average well-being within a country
• GDP is the total market value, expressed in dollars, of all final goods and services produced in an economy in a given year
• Dividing a particular country's GDP by its population is an estimate of how much income, on average, the economy produces per person (per capita) per year
• GDP per capita is a measure of a nation's "standard of living"
• Economic Growth

  Expanding GDP, i.e., making the size of the economy bigger
• GDP stands for Gross Domestic Product, it is the sum of all economic activity in a nation over a specific period
• Poverty is about not having enough money to meet basic needs including food, clothing and shelter
• Poverty is

  • Hunger
  • Lack of shelter
  • Being sick and not being able to see a doctor
  • Not having access to school and not knowing how to read
  • Not having a job
  • Fear for the future
  • Living one day at a time
• Poverty is inherently multidimensional, as is Economic Development
• Comprehensive Data on Global Poverty (2013)

  • 719 million people (9.2 percent of world population) living below the international poverty line
  • 1.2 billion people in 111 developing countries live in multidimensional poverty, accounting for 19 percent of the world's population
  • 24 percent of the world's population, which equates to 1.9 billion people, live in fragile contexts, characterized by improvised conditions and dire circumstances
  • Over 37 million people were living in poverty in the U.S. in 2021, 11.1 million of which were children
• Poverty Line

  A set amount of income below which it becomes difficult, if not possible, for people to afford essentials like food and shelter. Each country determines its poverty line by calculating the cost of meeting minimum needs. Households with income below this line are considered to be living in poverty.
• Multidimensional Poverty

  Poverty is not solely about income. Even if their income is above the poverty line, their family may still not have basic services such as electricity, access to clean water, sanitation, and education.
• Differences in the economic growth rate of nations often come down to differences in inputs (factors of production) and differences in total factors productivity (TFP) – the productivity of labor and capital resources.
• Higher productivity promotes faster economic growth, and faster growth allows a nation to escape poverty.
• Factors that increase productivity (and growth)

  • Institutions
  • Government
  • International Trade
• Institutions

  Provides incentives for innovation and production
• Government


  Play an important part in the development of a nation's economy
• International Trade

  Increasing increase to international trade can provide markets for the goods produced by less-developed countries. Also increase productivity by increasing the access to capital resources.
• Escaping Poverty (People)

  Lies in rising levels of income
• Escaping Poverty (Countries)

  Increasing the amount of output (per person) that their economy produces. In short, economic growth enables countries to escape poverty.
• Economic growth

  A sustained rise over time in a nation's production of goods and services
• An economy's production is a function of its inputs, or factors of production (natural resources, labor resources, and capital resources), and the productivity of those factors (specifically the productivity of labor and capital resources), which is called total factor productivity (TFP).
• How to Increase TFP to Escape Poverty

  • Institution
  • Trade
• Institution

  Economists suggest that institutions such as property rights, free and open markets, and the rule of the law provide the best incentives and opportunities for individuals to produce goods and services.
• Trade

  Poorer nations use trade to access capital goods (advanced technology, equipment, etc.) to increase their TFP, resulting in a higher rate of economic growth. Trade also provides a broader market for a country to sell the goods and services it produces. Removal of trade barriers could close the income gap between the rich and poor countries by 50 percent.
• Economics

  A branch of Social Science that deals with the study of the allocation of limited resources for production, distribution, and consumption of goods and services to satisfy the unlimited needs and wants of people.
• Economics

  The study of choice
• Development

  The process of expanding human freedom. It is "the enhancement of freedoms that allow people to lead lives that they have reason to live". Hence "development requires the removal of major sources of unfreedom: poverty as well as tyranny, poor economic opportunities as well as systematic social deprivation, neglect of public facilities as well as intolerance or overactivity of repressive states".
• Development

  • Father, construction worker. Family always eats sardines. Study under TESDA. Welder. Income increases. Level up. Instead of sardines, now eat chicken due to increased income. From sardines, now pork or chicken. That's progress. Development.
• Economic Development


  The 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 with a focus on improving conditions in the world's poorest countries.
• What is Economic Development?

  • Building or improving infrastructure such as roads, bridges, etc.
  • Improving our education system through new schools
  • Enhancing our public safety through fire and police service
  • Incentivizing new businesses to open a location in a community
• Economic Development is categorized into

  • Governments working on big economic objectives such as creating jobs or growing an economy
  • Programs that provide infrastructure and services
  • Job creation and business retention through workforce development programs
• Funding of Development is mainly acquired by means of

  • Taxes on personal property, local sales, and real estate
  • Investment from the private sector in free market economies
  • Government investment in command economies
• Economic Development Goals

  • Increase the availability of goods and services
  • Increase per capita income
  • Promote the freedom to make responsible economic and social choices
• How do we know if Economic Development is working?

  • Improvements in average income of families
  • Local unemployment rates
  • Standardized testing and literacy results in children
  • Leisure time and changes in life expectancy, or hospital stays
• Economic Development

  Economic growth accompanied by changes in output distribution and economic structure. These changes include: Improvement in the material well-being of the poorer half of the population, A decline in the agriculture's share of GNP, Corresponding increase in the GNP share of industry and services, Increase in the education and skills of the labor force, Substantial technical advances originating within the country.
• Fiscal Policy

  The use of government spending and taxation to influence the economy; use of government revenue collection and expenditure to influence a country's economy.
• Economic development refers to how an economy advances. Its importance lies in how it enables producers and consumers to operate more efficiently and live wealthier.
• The major goal of poor countries is economic development or economic growth.