Economic Development Essay PDF

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Quiz no. 1 Economic Development In your own words, Anwer as rationally as possible based on the topics and discussions we had in our class... 3 pts each ............ GOODLUCK: Why do you think economics is the central study in understanding the problems of developing countries? Without economics, un...

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Quiz no . 1 Economic Development In your own words, Anwer as rationally as possible based on the topics and discussions we had in our class… 3 pts each ………... GOODLUCK: 1. Why do you think economics is the central study in understanding the problems of developing countries?

Without economics, understanding the problems of a developing country would be impossible. The development of a country depends upon economic factors and so we can only understand how a country is developing if we know about how the economic factors are and how the factors change. A commoner can't understand unemployment as well as an economist understands unemployment because economists look at unemployment all the time and pay very close attention to it so economists are very good at understanding economic development problems for this reason and probably other reasons. Furthermore, economics is a social science and is concerned with people and economic development problems.

2. How does the concept of “capabilities to function” help us gain insight into development goals and achievements? Is money enough? Why or why not Functioning is simply the state of doing, being or working. Capability refers to the set of VALUABLE functioning that a person has EFFECTIVE ACCESS TO. Therefore, a person’s capability symbolizes the right to exercise “EFFECTIVE FREEDOM” of people to choose between different functioning combinations- being different kinds of life, that THEY HAVE REASONS TO VALUE. This allows analysis to focus on sets of functioning related to particular aspects of life. Through this concept, people who are liberally capable of what people are, or can be- does, or can do will vitally play a major role into development goals and achievement. Since CAPABILITY is tied with DEVELOPMENT and ACHIEVEMENT. Capability to function is essential to promote development goals and achievement for it is an act of doing a certain thing that a doer has reasons to value without restrictions while pursuing and performing it. Money can’t guarantee development goals and achievements simply because there is more than what a blue peso bill can offer, if products are not available money is useless, money can’t be prolonged if other aspects are missing such as education and health. 3. Why is an understanding of development crucial to policy formulation in developing nations? Do you think it is possible for a nation to agree on a rough definition of

development and orient its strategies accordingly? It's important because in developing economies there are a lot of factors to consider when undertaking new policies. For example certain taxation strategies can actually make the country worse off. Accepting certain foreign aid can make certain sections in the economy 'lazy'. Understanding of developing economies helps you understand how and what policies best fit your country . 4. What is meant by the statement that many developing nations are subject to “dominance, dependence, and vulnerability” in their relations with rich nations? Can you give some examples? Developing countries tend to be seen as dependent, dominated and vulnerable because we know for a fact that it has a poor economic status. As a result, these countries are being silently slaved and bullied by rich nations. An example of this is China to our country. China is using its power to dominate our sovereign and because of the fact that it can pull its ace cards once we backfired them, a war may occur between China and Philippines. For sure we’ll lose because we don’t have the means to protect not only our country but also all citizens living in the Philippines. 5. For all of their diversity, many less developed countries have commonalities problems. What are these problems ? Which do you think are the most important? Why? Poverty, housing problems, education issues, lack of agriculture support, huge unemployment rate, racial and economic tensions, and many more. The most important thing is addressing the root cause of these problems, not first the poverty itself but how people manage their role and life as part of these undeveloped countries. For me, leaders should act as leaders and citizens should act as citizens. Leaders should play their role as what a leader needs to do, no excuses and no drama. Citizens must demand support from the government and they must know their rights. However, they must also know how to do things on their own and not depend only on what the government could give. 6. Is economic growth possible without economic development? Economic development without economic growth? Economic growth means an increase in real national income / national output. Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care. From that definition of the two variables, I think economic growth is impossible without economic development. The same goes with economic development without economic growth. Example, environmental problems. Producing toxic chemicals will lead to an increase in real GDP. However, without proper regulation, it can also lead to environmental and health problems. This is an example of where growth leads to a

decline in living standards for many. Environment problems are broad and it can affect all people living in that certain area. Labor, capital and raw materials will be uncertain due to the threat of environmental problems.

7. Explain the three major components of economic growth on how they contribute to the economy’s output. The three major components of economic growth:·(1) Physical and human capital formation (2) Labor force growth (3) Technological advancement. Physical and human capital formation also known as capital accumulation, it invests in future output. Example given for direct investments such as roads, electricity and new factories. Indirect investment includes upgrades in existing resources. While for human resource, formal schooling, vocational and on the job training were invested. These are beneficial in the future for it enhances its means to development. More labor force growth is equated with more productive workers. These workers will attractively perform their best because they are empowered by the capital accumulation process. Technological advancement is the application of new scientific knowledge in the form of invention and innovation. Technological process has 3 stages, the neutral which increases output without calling for any changes in input ratios, the labour saving which increases productivity, and capital saving that increases productivity of capital by innovation and invention. 8. According to the World Bank’s World Development Indicators 2003, Canada’s 2001 GNI per capita ($21,930) was about 63 times higher than Kenya (with $350). Can we say that the average economic well-being in Canada was about 63 times the average economic well-being in Kenya?

Maybe yes, to support this MyLifeElsewhere 2020, revealed that in Kenya, 40.0% of adults are unemployed as of 2013. In Canada, that number is 6.3% as of 2017.Economic well-being is a person's or family's standard of living based primarily on how well they are doing financially. If GNI is a measurement of a country's income. And it includes all the income earned by a country's residents, businesses, and earnings from foreign sources, having low GNI clearly proves that Canada was about 63 times the average economic wellbeing in Kenya. 9. How well does Rostow’s stage theory explain that country’s economic growth? Country’s economic growth is highlighted in Rostow’s stage theory. It implicitly defines economic growth through different stages such as (1) traditional society, (2) pre-

conditions for take-off, (3) take-off: savings and investment increase rapidly (4) drive to maturity (5) high mass-consumption. Because of these stages we can identify which country's growth belongs. In traditional society, there is a limited ability for growth due to lack of modern technology. Technically, people will heavily rely on manual labor and self-sufficiency. An example of this is a primitive tribe. Members will use the plants around them to create shelter. The pre-conditions for take-off industrial and manufacturing of society begins. Trade expands overseas creating an international market. This stage is the preparation for take-off. Agriculture becomes commercialized due to technology improvements. For take off, savings and investment increase rapidly. Productive investment rises 5%-10% of national income. While drive to maturity, Rostow defines it as the period when society has effectively applied the range of modern technology to the bulk of its resources. Lastly, the high mass-consumption, the highest stage of economic growth the countries which belong here consumes high valued goods normally purchased. Consumers have beyond their basic needs. People live in cities creating an urban society. A great example of this is in Seattle Washington.

10. Among the countries we have already studied, what economic development theory best explains the development in that country? Economic development theory best explains the development in Singapore is Rostow’s stage theory. Industrialization, urbanization, and exchange in the vein of Rostow's model are as yet seen by numerous individuals as a guide for a nation's turn of events. Singapore is perhaps the best illustration of a country that filled along these lines and is currently a prominent part in the worldwide economy. Singapore is a southeast Asian country with a population of more than 5 million, and when it got autonomous in 1965, it didn't appear to have any outstanding possibilities for development. Nonetheless, it industrialized early, creating productive assembling and innovative enterprises. Singapore is currently profoundly urbanized, with 100% of the populace considered "urban." It is quite possibly the most pursued exchange that accomplishes the worldwide market, with a higher per-capita pay than numerous European nations....