- Economic development is an increase or improvement in the economic welfare of well being of a country
- Economic development is wider than economic growth in terms of what it takes into account
- Apart from living standards, an increase in the economic development of a country will reduce the poverty rate, increase the self esteem of the people and provide more choices to consumers
- The two indicators used to indicate the economic development of a country are the GDP and HDI
- There are many reasons because of which different countries have a different rate of economic development, some of these reasons include:
1- Differences in income and gp per head
2- Different amount of money saved due to difference in earnings/ wages
3- Difference in the amount invested in businesses and production of capital goods
4- Difference in population and the population growth rate
5- Difference in the quantity and quality of education and healthcare
6- Difference in the size and the proportion of the primary secondary and tertiary sectors of the economy
7- Difference in the productivity of the labour force
- Governments wish to achieve economic development for the following reasons :
1- To achieve a higher gdp and gdp per head
2- To improve the living standards, thereby improving the quality of life for its citizens
3- To attract multinational companies
4- To reduce poverty and increase the labour force and the output of the economy
5- To become internationally competitive as it can then trae with more countries
- Countries with low economic development face many problems such as :
1- Higher population and birth rate
2- Higher amount/ level of debt
3- Lack of / insufficient investment in business and production of capital goods
4- The highly qualified workers may emigrate to other countries , thus experiencing a brain drain
5- Trade restrictions
6- Low standards of living and quality of life
- Measures to improve and promote economic development are :
1- Import substitution, which includes protecting domestic industries by foreign markets through government intervention, however other countries could retaliate
2- Another measure includes promoting exports by exposing domestic industries to market forces as this will force firms to be more efficient which would improve the quality of the products
3- Improvement in education and healthcare
4- Attracting or trying to attract multinational companies
Bibliography:
Course material is referred from IGCSE Economics textbook.
- Economic development is wider than economic growth in terms of what it takes into account
- Apart from living standards, an increase in the economic development of a country will reduce the poverty rate, increase the self esteem of the people and provide more choices to consumers
- The two indicators used to indicate the economic development of a country are the GDP and HDI
- There are many reasons because of which different countries have a different rate of economic development, some of these reasons include:
1- Differences in income and gp per head
2- Different amount of money saved due to difference in earnings/ wages
3- Difference in the amount invested in businesses and production of capital goods
4- Difference in population and the population growth rate
5- Difference in the quantity and quality of education and healthcare
6- Difference in the size and the proportion of the primary secondary and tertiary sectors of the economy
7- Difference in the productivity of the labour force
- Governments wish to achieve economic development for the following reasons :
1- To achieve a higher gdp and gdp per head
2- To improve the living standards, thereby improving the quality of life for its citizens
3- To attract multinational companies
4- To reduce poverty and increase the labour force and the output of the economy
5- To become internationally competitive as it can then trae with more countries
- Countries with low economic development face many problems such as :
1- Higher population and birth rate
2- Higher amount/ level of debt
3- Lack of / insufficient investment in business and production of capital goods
4- The highly qualified workers may emigrate to other countries , thus experiencing a brain drain
5- Trade restrictions
6- Low standards of living and quality of life
- Measures to improve and promote economic development are :
1- Import substitution, which includes protecting domestic industries by foreign markets through government intervention, however other countries could retaliate
2- Another measure includes promoting exports by exposing domestic industries to market forces as this will force firms to be more efficient which would improve the quality of the products
3- Improvement in education and healthcare
4- Attracting or trying to attract multinational companies
Bibliography:
Course material is referred from IGCSE Economics textbook.