Introducing Economic Development A Global

Transcript:Introducing Economic Development A Global:
Introducing Economic Development A Global Perspective Todaro and Smith, Chapter: 1 Dr Shailesh Kumar Asst Professor, Dept of Economics, Bharati College, University of Delhi What Do We Mean By Development development may mean different things to different people so it is important that we have some working definition or meaning. Without that we would be unable to determine which country was actually developing and which was not. Traditional Economic Measures FEATURES : Traditionally development was generally seen as an economic phenomenon. Development meant achieving sustained rates of growth in per capita income. Traditional approach used to measure overall economic well-being of a population. rapid industrialization and availability of goods and services to the average citizen for consumption and investment was its prime concerns. It implies the planned change of the structure of production and employment so that agriculture’ share of both declines and that of the manufacturing and service industries increases. Traditional Economic Measures LIMITATION The experience of the 1950s to early 1970s signaled that something was wrong with this narrow approach of development For example many developing countries reached their economic growth targets but the levels of living of the masses remained unchanged. Under this approach, poverty, discrimination, unemployment and income distribution which are major challenge before developing countries, could not be addressed. The New Economic View of Development FEATURE During the 1970s, economic development redefined in terms of the reduction or elimination of poverty, inequality, and unemployment within the context of a growing economy. “Redistribution from growth” was its common slogan. The New Economic View of Development Development must therefore be understood as a multidimensional process- involving major changes in social structures, popular attitudes, and national institutions, as well as the acceleration of economic growth, the reduction of inequality, and the eradication of poverty. The New Economic View of Development Development represent the whole range of change by which an entire social system tuned to the diverse basic needs and aspirations of individuals and social groups within that system, moves away from a condition of life widely. Amartya Sen’s “Capability” Approach Amartya Sen, the 1998 Nobel laureate in economics, argues that the “capability to function” is what really matters for status as a poor or non poor person. Sen argues that poverty cannot be properly measured by income or even by utility as conventionally understood; what matters fundamentally is not the things a person has—or the feelings these