economic development

• What is the definition of development?

  Development is a multi-dimensional process involving significant qualitative and quantitative improvements in human welfare.
• What is the objective of development?

  The objective of development is to create an enabling environment for people to enjoy long, healthy, and creative lives.
• Why is the traditional view of development considered limited?

  Because it focused only on economic growth and did not address issues like poverty and inequality.
• What are the three main areas of traditional development?

  Economic growth, structural change, and improvement in social indicators.
• What is the New Economic View of development?

  Development is the reduction or elimination of poverty, inequality, and unemployment within a growing economy.
• What are the three core concepts identified by Todaro in the new view of development?

  Sustenance, self-esteem, and freedom from servitude.
• What are the objectives associated with the core concepts of sustenance, self-esteem, and freedom from servitude?


  • Sustenance: To meet basic needs and ensure all people are above the international poverty line.
  • Self-esteem: To foster a sense of self-worth and dignity among individuals.
  • Freedom from servitude: To allow individuals to make their own choices and have political and religious freedoms.

  
• How did early growth-centered development strategies fail?

  They assumed economic growth would automatically improve all areas, but benefits often concentrated among the wealthy, increasing inequality.

  
• What are the Millennium Development Goals now evolved into?

  The Sustainable Development Goals (SDGs).
• What percentage of the world’s population lives in LEDCs?

  Over 80%.
• What are the eight critical components identified for studying diversity in developing economies?

  Size, historical background, physical and human resource endowments, ethnic and religious composition, public and private sector importance, industrial structure, external dependence, and political structure.

  
• What are the three types of industrial sectors in an economy?

  1. Primary sector: Extractive industries (agriculture, mining).
  2. Secondary sector: Manufacturing and construction.
  3. Tertiary sector: Services (transport, education, financial services).

  
• What happens to the sectoral balance as economies develop?

  The primary sector declines, while the secondary and tertiary sectors increase in importance.
• What are the stages of sectoral change in economic development?

  Stage 1: Primary dominance, Stage 2: Secondary dominance, Stage 3: Tertiary dominance.
• What causes sectoral change in economies?

  Changing income levels, demographic changes, and education improvements.
• What is the relationship between income levels and sectoral balance?

  As per capita income increases, consumers spend more on secondary and tertiary sectors.
• How does education impact economic development?

  A more educated population is better equipped for work in the tertiary industry.
• How does the industrial structure change as economies develop?

  The proportion of output and employment shifts from primary to secondary and then to tertiary industries.
• What is the significance of the public and private sectors in LEDCs?


  LEDCs with larger private sectors tend to attract more foreign direct investment.
• What is the role of political structure in development?

  Certain power structures can either facilitate or hinder development.
• How does external dependence affect LEDCs?

  LEDCs may rely on foreign powers for economic, social, and political support, which can hinder their development.
• What are the implications of ethnic and religious composition in LEDCs?

  Ethnic and religious diversity can lead to conflict or spur development, depending on the context.
• What is the impact of historical background on LEDCs?

  Many LEDCs have been influenced by former colonial powers, affecting their political and economic institutions.
• What is the significance of resource endowments in development?


  Differences in physical and human resource endowments can significantly impact a nation's trade and development potential.
• How does the size of a nation affect its development?

  Size can provide advantages like diverse resources but can also lead to administrative challenges.
• What are the implications of the sectoral balance on employment as economies develop?

  As economies develop, employment shifts from primary to secondary and tertiary sectors, reflecting changes in economic structure.

  
• What is the relationship between technological development and sectoral change?

  Technological development leads to increased productivity in the secondary sector, facilitating economic growth.
• What is the role of leisure in the development process?

  Increased income and living standards allow for more leisure time, which can drive demand for consumer goods.
• How does the demand for consumer goods change as economies develop?

  As incomes rise, the demand for consumer goods increases, fueling growth in the secondary sector.
• What is the significance of the tertiary sector in developed economies?


  The tertiary sector becomes dominant as economies develop, reflecting increased demand for services.
• What is the impact of rising living standards on the tertiary sector?

  Rising living standards lead to increased demand for services, causing the tertiary sector to expand.
• What is the relationship between primary sector dominance and agricultural development?


  In primary dominance, economies are agrarian, focusing on agriculture as a necessity for survival.
• How does the secondary sector evolve during economic development?

  The secondary sector grows as the rural workforce is absorbed and manufacturing becomes more prominent.
• What are the key points identified as economies develop?

  Agriculture declines, the tertiary sector rises, and manufacturing initially rises before declining.
• What is the significance of technological advancements in the primary sector?

  Technological advancements in agriculture lead to surplus production, which can be traded.
• What is the relationship between income and demand for goods and services?

  As income increases, demand for secondary and tertiary goods and services rises.
• How do demographic changes influence economic development?

  Demographic changes, such as urbanization and longer life expectancy, allow for greater education and skill acquisition.
• What is the role of education in the transition to a tertiary-dominant economy?

  Education equips the population with skills needed for employment in the growing tertiary sector.
• What happens to consumer spending as per capita income increases?

  Consumers spend an increasing proportion of their income in the secondary and tertiary sectors.
• What is the income elasticity of demand (YED) for primary products?

  Primary products have a YED < 1, indicating inelastic demand.