1 Flashcards
what is economics?
Social science that deals with efficient use of scarce resources to produce goods/service to maximize satisfaction of unlimited human wants
Political economy
combine economic analysis with politics
Development economics
Essentially, development economics is a field that studies the causes of global poverty and how best to combat
traditional economic view
?
new economic view of development
- In the 70 development came to be viewed as multidimensional process of major changes in social structures, attitudes and institutions as well as the acceleration of
economic growth,
reduction inequality
eradication of poverty - redistribution from growth became a common slogan
Amartya Sen’s “Capability” approach
The “ capability to function” is what really matters.
what matters for well-being is not making a commodity available but what people does or can do with the commodity
Sen’s view “functioning” can range
- from being able to live long, well-nourished, literate and being well-clothed.
- to being mobile, happy , able to take part in the community and having self esteem
Sources of disparity between real income and actual advantage: (Sen’s Approach)
- personal heterogeneity, such as those connected with disability, illness , age or gender
- environmental diversities, such as heating and clotting requirements in the cold or infectious diseases in the tropics, or the impact of pollution
- variations in the social climate, such as the prevalence of crime and violence, and “social capital”
- distribution within the family (some kind of discrimination)
- differences in relational perspectives, meaning that some goods are essential because of local customs and conventions.
conceptual basis for understanding the meaning of development : (Sen’s approach)
- Sustenance : the ability to meet basic needs (food,clothing,etc)
- Self-esteem: feeling of worthiness and self respect (not being used as tools for other benefits)
- Freedom from servitude: Be able to choose, be able to make political and economic choose.
World Bank international comparison program:
PPPs is use to equalize the purchasing power of currencies
World bank classification of countires:
- Low- income economies: GNI per capita of $1025 or less (2018)
- Lower middle -income economies: GNI per capita ($1026 - $3995)
- Upper middle-income economies: GNI per capita ($3996-$12,375)
- High-income economies: GNI per capita ($12,376 or more)
World bank classification of countires:
- Low- income economies: GNI per capita of $1025 or less (2018)
- Lower middle -income economies: GNI per capita ($1026 - $3995)
- Upper middle-income economies: GNI per capita ($3996-$12,375)
- High-income economies: GNI per capita ($12,376 or more)
Components of economies growth
capital accumulation
population and labour force growth
- technological progress
- (he forgot stability and labour force concept may change with AI and automation. Also capital is affected by the kind and inequality)
Production possibility frontier:
check
Technological progress
means increased application of new scientific knowledge in the form of inventions and innovations with regard to physical and human capital
