G8

• Economic Development


  Frameworks and actions designed to promote economic growth, social development, and environmental sustainability
• Stakeholders implementing economic development

  • Government
  • International organizations
  • Other stakeholders
• Development Policies


  Policies designed to sustainably reduce poverty by addressing its multi-dimensional aspects and promoting inclusive economic growth
• Development Policies


  • Attracting, creating, and retaining businesses that provide jobs to residents
• Development Strategies

  • Investment in Infrastructure
  • Investment in Education
  • Tourism Development
  • Investment in Human Capital
• Policy Formulation

  1. Identify the Problem

  2. Define the Objectives

  3. Analyze Options

  4. Writing the Policy

  5. Implementation

  6. Monitoring and Evaluation
• Effective Development Policy

  • Clear Goals
  • Inclusivity
  • Transparency
  • Sustainability
  • Flexibility
• Import Substitution (IS)


  Replacing consumer goods imported from abroad, thereby catering to local demand through locally produced goods<|>Substituting imports of raw materials or inputs used for industrial production
• Export-Led Growth (ELG)


  Strengthening local manufacturing to compete in global markets
• Import Substitution


  Frequently involves implementing protectionist policies like tariffs and quotas
• Export-Oriented Approach


  Often requires a more liberalized trade policy to gain access to international markets
• Advantages of Export-Led Growth (ELG)

  • Increased revenue
  • Transfer of skills and technology
  • Economic diversification
  • Job creation
  • Potential currency appreciation
• Disadvantages of Export-Led Growth (ELG)

  • Over-reliance on international market
  • Potential social and environmental consequences
  • Potential for declining market shares
  • Exchange rate risks
  • Possible resource depletion
• Advantages of Import Substitution (IS)

  • Promotes domestic production and reduces dependence on imports
  • Encourages the development of local industries and technology
  • Creates employment opportunities in the domestic market
  • Protects infant industries from foreign competition
• Disadvantages of Import Substitution (IS)

  • Can lead to inefficiencies and low productivity due to lack of competition
  • Can lead to a limited choice of goods and services for consumers
  • Can result in high inflation due to protectionist measures
  • Can lead to a lack of foreign exchange and balance of payment problems
• Initially, developing countries adopted import substitution strategies. In the 1960s, countries like South Korea and Taiwan shifted to ELG. By the 1980s, countries like China and India effectively adopted the strategy.
• Both strategies have their own set of challenges and criticisms. However, it is important to consider the specific needs and circumstances of each country when deciding which approach to take.
• Mercantilism


  An economic theory that emphasizes the importance of stockpiling precious metals, such as gold and silver, to increase national wealth and power
• Nationalism


  Prioritizes the interests of the national economy over global considerations, involving implementing protectionist measures such as tariffs and quotas to shield domestic industries from foreign competition
• Linear-stages of growth theory

  A theory that outlines five stages of economic development: Traditional Society, Preconditions for Take-Off, Take-Off, Drive to Maturity, and Age of High Mass Consumption
• Harrod-Domar Growth Model


  A functional economic relationship in which the growth rate of gross domestic product depends directly on the national net savings rate and inversely on the national capital-output ratio
• Structural change theory


  Examines how less developed economies transition their economic structures away from traditional subsistence agriculture towards a more diversified, urbanized, and modern industrial and service-oriented economy
• Governmentality


  The concept developed by Michel Foucault that examines how power and knowledge are exercised through the "conduct of conduct" in economic systems
• Key aspects of governmentality in economics

  • Neo-Liberal Governmentality
  • Rationalities and Practices
  • Technologies of Power
  • Technologies of the Self
  • Governing from a Distance
  • Expertise
  • Environmental Governance