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.
This kind of advancement affirms the dignity of each individual and nourishes their growth as human beings made in the image of God.
Real Advancement
What are the four different types of definitions of economic development?
- Amartya Sen’s “Capability Approach”
- Adam Smith’s Theory
- Joseph Schumpeter’s Theory
- Principles of the Social Doctrine of the Church
What are the nature of development economics?
- Traditional Economics
- Political Economy
- Development Economics
It is a field of study that is rapidly evolving through distinctive analytical and methodological identity.
Development Economics
It draws on relevant principles and concepts of economics in either a standard or modified form.
Development Economics
This is concerned primarily with the efficient and least-cost allocation of scarce productive resources and with the optimal growth of these resources to produce an expanding range of goods and services.
Traditional Economics
It emphasizes utility, profit maximization, market efficiency, and determination of equilibrium.
Traditional Economics
This goes beyond traditional economics and includes the social and institutional processes through which certain groups of economic and political elites influence the allocation of scare productive resources.
Political Economy
It is concerned with the relationship between politics and economics, with special emphasis on the role of power in decision-making.
Political Economy
It is not only concerned with the efficient allocation of existing scarce productive resources, it also deals with the economic, social, political, and institutional mechanisms necessary to bring about rapid and large-scale improvements for the people living in developing and transitioning economies.
Development Economics
It was traditionally seen as a phenomenon in which rapid growth of overall and per capita gross national income aids the masses in the form of jobs and other economic opportunities.
Economic Development
According to Smith and Todaro, what problems are considered secondary importance to “getting the growth job done”?
- Poverty
- Discrimination
- Unemployment
- Income Distribution
What are the traditional economic measures of development?
- Growth rate of income per capita
- Growth levels of “real” per capita GNI
- Planned alteration of production and employment structures
It is the total gross national income of a country divided by the total population.
Income per capita
It is the monetary growth of GNI per capita minus the rate of inflation.
Gross National Income
It measures economic well-being by determining how much of real goods and services are available to the average citizen for consumption and investment.
Gross National Income
The development strategies have usually focused on rapid industrialization, often at the expense of what?
Agriculture and Rural development
It has traditionally meant achieving sustained rates of growth of income per capita to allow a nation to expand its output at a rate faster than the growth of population.
Development
It is customarily measured using levels of growth of “real” per capita gross national income.
Development in terms of economic well-being of a population
What happened after the planned alteration of production and employment structures?
It caused a decline in agriculture’s share of both and an increase in the manufacturing and service industries.
What are the New Economic View of Development?
Social Values
Popular Attitudes
Reduction of Inequality
Economic Growth
Eradication of Poverty
National Institutions
These are principles, standards, or qualities that a society or groups within it consider/s worthwhile or desirable.
Social values
These pertain to the states of mind or feelings of an individual, group, or society regarding issues such as material gain, hard work, savings for the future, and sharing wealth.
Popular attitudes
These are norms, rules of conduct, and generally accepted ways of doing things.
National Institutions
This pertains to the increase in the production of economic goods and services.
Economic growth
This involves fair distribution of wealth in a nation.
Reduction of inequality
This involves economic and humanitarian actions that alleviate the lives of the people from deprivation to basic needs.
Eradication of poverty
What are the Three Cores of Development?
Sustenance
Self-esteem
Freedom from Servitude
The core development that meets the ability to meet basic needs.
Sustenance
The core development that means to be a person.
Self-Esteem
The core development that means to be able to choose.
Freedom from Servitude
This includes the basic goods and services, such as food, clothing, and shelter, that are necessary to sustain an average human being at the bare minimum level of living.
Sustainability
What condition exists when any of the basic goods and services are absent or in critically short supply?
Absolute Underdevelopment
What is necessary for the improvement in the quality of life?
Economic Development
What is the basic function of all economic activity?
To provide as many people as possible with the means of overcoming the helplessness and misery arising from lack of food, shelter, health, and protection.
This involves the feeling of worthiness that a society enjoys when its social, political, and economic systems and institutions promote human values.
Self-Esteem
The nature and form of self-esteem may what?
May vary from society to society and from culture to culture.
What is an almost universal measure of worth?
National prosperity
With the proliferation of “modernizing values” of developed nations, what do societies in developing countries suffer from?
Cultural confusion
When do societies in developing countries suffer from cultural confusion?
When they come in contact with the economically and technologically advanced societies.
What do developed nations significantly attach?
Material Values
What are increasingly conferred only on countries that possess economic wealth and technological power?
Worthiness and Esteem
Worthiness and esteem are increasingly conferred only on which countries?
Countries that possess economic wealth and technological power
This involves a situation in which a society has a variety of alternatives from which to satisfy its wants and individuals enjoy real choices according to their preferences.
Freedom from Servitude
It must be understood in the sense of emancipation from alienating material conditions of life and from social servitude to nature, other people, misery, oppressive institutions, and dogmatic beliefs.
Freedom
When did the member countries of the UN adopt the Millennial Development Goals?
September 2000
It involves an expanded range of choices for societies and their members together with a minimization of external constraints in the pursuit of social and economic development.
Freedom
How many Millennial Development Goals were adopted by the UN?
8
AID-CREPE
What are the eight Millennial Development Goals?
- Achieve universal primary education.
- Improve maternal health.
- Develop a global partnership for development.
- Combat HIV/AIDS, malaria, and other diseases.
- Reduce child mortality.
- Eradicate extreme poverty and hunger.
- Promote gender equality and empower women.
- Ensure environmental sustainability.
It aims to reduce by half the proportion of people living on less than $1 a day and those who suffer from hunger.
Eradicate extreme poverty and hunger.
It aims to ensure that all boys and girls complete a full course of primary schooling.
Achieve universal primary education.
It aims to eliminate gender disparity in primary and secondary education, preferably by 2005, and at all levels by 2015.
Promote gender equality and empower women.
It aims to halt and begin to reverse the spread of HIV/AIDS, malaria, and other major diseases
Combat HIV/AIDS, malaria, and other diseases.
It aims to reduce by two-thirds the mortality rate among children under 5 years old.
Reduce child mortality.
It aims to reduce by three-quarters the maternal mortality ratio.
Improve maternal health.
It aims to integrate the principles of sustainable development into country policies and programs; reverse the loss of environmental resources; and reduce by half the proportion of people without sustainable access to safe drinking water.
Ensure environmental sustainability.
It wants to achieve significant improvement in the lives of at least 100 million slum dwellers by 2020.
Ensure environmental sustainability.
It aims to develop further an open, rule-based, predictable, nondiscriminatory trading and financial system, etc.
Develop a global partnership for development.
What does UNDP mean?
United Nations Development Programme
Article by UNDP in 2015
Number of people living in extreme poverty has declined by more than half, from a in 1990 to b in 2015.
1990: 1.9 billion
2015: 836 million
Article by UNDP in 2015
Number of people in the working middle class - living on more than $4 a day
Nearly tripled between 1991-2015
Article by UNDP in 2015
Proportion of undernourished people in DEVELOPING REGIONS
Dropped by almost half since 1990
Article by UNDP in 2015
Number of out-of-school children of primary school age fell by almost half, to x in 2015 down from x in 2000
2015: 57 million
2000: 100 million
Article by UNDP in 2015
What has achieved in the majority of countries?
Gender Parity
Article by UNDP in 2015
Mortality rate of children under five
Cut by more than half since 1990
Article by UNDP in 2015
Maternal mortality rate
Fell by 45% worldwide since 1990
Article by UNDP in 2015
Number of averted malaria deaths between 2000 and 2015
6.2 million
Article by UNDP in 2015
New HIV infections
Fell by 40% between 2000 and 2013
Article by UNDP in 2015
Number of people living with HIV and receiving antiretroviral therapy (ART) globally, an immense increase from x in 2003 to x in June 2014
2003: 800,000
2014: 13.6 million
Article by UNDP in 2015
Number of people saved by TB prevention, diagnosis, and treatment from 2000-2013.
37 million
Article by UNDP in 2015
Number of people worldwide who have gained access to improved sanitation
2.1 billion
Article by UNDP in 2015
Number of countries that met the MDG drinking water target
147 countries
Article by UNDP in 2015
Number of countries that met the MDG sanitation target
95 countries
Article by UNDP in 2015
Number of countries that met the MDG drinking water and sanitation targets
77 countries
Article by UNDP in 2015
The official development assistance from developed countries increased by a% from 2000 to 2014, reaching b
66%
$135.2 billion or 6.7 trillion
It addresses the global challenges, including those related to poverty, inequality, climate, environmental degradation, prosperity, and peace and justice.
Sustainable Development Goals
SDG
Economic growth must be inclusive to provide sustainable jobs and promote equality.
No Poverty
SDG
The food and agriculture sector offers key solutions for development and is central for hunger and poverty eradication.
Zero Hunger
SDG
Ensuring vigorous lives and promoting the well-being for all at all ages is essential to sustainable development.
Good Health and Well-Being
SDG
Obtaining a quality education is the foundation to improving people’s lives and sustainable development.
Quality Education
SDG
This is not only a fundamental human right, but a necessary foundation for a peaceful, prosperous, and sustainable world.
Gender Equality
SDG
Clean, accessible water for all is an essential part of the world we want to live in.
Clean Water and Sanitation
SDG
Energy is central to nearly every major challenge and opportunity.
Affordable and Clean Energy
SDG
Sustainable economic growth will require societies to create the conditions that allow people to have quality jobs.
Decent Work and Economic Growth
SDG
Investments in industrial developments are crucial to achieving sustainable development.
Industry, Innovation, and Infrastructure
SDG
To reduce disparities, policies should be universal in principle, paying attention to the needs of disadvantaged and marginalized populations.
Reduced Inequalities
SDG
This involves recycling of paper, plastic, glass, and aluminum.
Responsible Consumption and Production
SDG
There needs to be a future in which towns provide opportunities for all, with access to basic services, energy, housing, transportation, and more.
Sustainable Cities and Communities
SDG
Climate change is a global challenge that affects everyone, everywhere.
Climate Action
SDG
Careful management of this essential global resource is a key feature of a sustainable future.
Life Below Water
SDG
Sustainably manage forests, combat desertification, halt and reverse terrestrial degradation, and halt biodiversity loss.
Life on Land
SDG
Access to fairness for all, and building effective, accountable institutions at all levels.
Peace, Justice, and Strong Institutions
SDG
Revitalize the global alliances for sustainable development.
Partnerships
