Introducing Economic Development Flashcards
This theory argues that the moral significance of development depends on what is important to a particular individual or group of people.
Amartya Sen’s “Capability” Approach.
Who theorized the “Capability” Approach?
Amartya Sen
It states 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 provide—but what a person is, or can be, and does, or can do.
Amartya Sen’s “Capability” Approach.
What matters for well-being is not just the characteristics of commodities consumed but also what?
The uses of these commodities to a consumer
What does Sen’s perspective helps explain?
Sen’s perspective helps explain why development economists have placed so much emphasis on health and education, and more recently on social inclusion and empowerment.
What do you call the countries with high levels of income but poor health and education standards?
“growth without development”
He is considered as the father of economics.
Adam Smith
He advocated the policy of Laissez-Faire.
Adam Smith
This states that the state should not impose any restriction on the freedom of an individual.
Laissez-Faire
What is the starting point of Adam Smith’s theory?
Saving or Capital Accumulation
According to Adam Smith, the theory of economic development rests on the pillars of what?
Savings
Division of labor
Wide extent of market
What happens if every individual member of society is left to examine his economic activity?
He will maximize the output to the best of his ability.
What brings out the best of an individual?
Freedom of action
What happens when you bring out the best of an individual?
Increases society wealth and progress
This theory assigns role to the entrepreneur and innovations in the process of economic development.
Joseph Schumpeter’s Theory
What is the driving force of the development in Joseph Schumpeter’s Theory?
The entrepreneur as an economic entity
This is a special gift, a characteristic feature of human nature, which does not depend on class or social status.
Entrepreneurship
In the pursuit of profit, what does an entrepreneur do?
Carries out a new combination of production factors
Contributes to the emergence of new products
Introduces new methods of production
Expands into new markets
Provides new forms of management
As a result of the initiatives, what does an entrepreneur and economy get?
Entrepreneur: Profits
Economy: Boosts to development
This refers to the new combinations of factors of production involving the creation of new products, use of new technologies and organization of production, opening of new markets and sources of raw materials.
Innovation
This argues that authentic development is more than economic progress; it’s about the development of people as human beings.
Principles of the Social Doctrine of the Church
It allows every individual to grow into the person God intended them to be.
True progress
What happens to the authentic development whenever one person’s freedom or greed diminishes another person’s flourishing?
It is denied.
What happens to the authentic development whenever one nation’s prosperity is detrimental to another’s?
It is denied.