Week 23 economic development Flashcards
economic development definition
measures the changes in the living standards and level of welfare within an economy
What are the 3 core values of economic development
if the economy can achieve all of these it reaches economic and social progress
what is the easiest way for a country to experience economic development
within a period of growth, this is what links them, but they are different things
what is the significant difference in economic growth and economic development
what is a chain link of economic growth to economic development
what types of economic growth can cause worse living standards (6 conditions)
what is the form of economic growth which leads to economic development
lewis dual sector model
watch econplus dal if needed
What are 7 main characteristics seen in developing countries
what are 4 indicators we can use to see if any economic development has taken place
what are the limitations on measuring economic development
what does the HDI index values mean and are measure between?
What are 3 things the HDI measures (Human Development Index)
What are 2 evaluative points as to why the HDI is not a perfect measure of economic development
1) Time frame - all the factors can only significantly change in the long-run (cannot quickly improve life expectancy)
2) number of factors - it measures only a limited range of development factors and the value provides an incomplete picture
what are examples of interventionist policies for economic development
import substitution, protectionism, exchange rate intervention, regluation, nationalisation, increasing government spending
what are 4 benefits of interventionist policies in promoting economic development
3 cons of intervention policies in promoting economic development
3 benefits of free market policies in promoting development
2) more competition, lower costs for consumers, more productivelyu efficient (cutting costs), more allocatively efficient meet consumers needs better, more dynamically efficient as promoting profit max leads to reinvestment
3) won’t suffer from bureaucracy and red-tape and no corruption
6 costs of free market policies in promoting development
1) private firms less likely to build infrastructure as much as gov are
2) free market are not efficient in allocating public goods (complete market failure), merit goods (partial market failiure)
3) resource depletion and environmental effects
4) free market fail to be equitable, income inequality as poorer get poorer (lack of benefits)
5) can’t compete with foreign countries, if other countries impose protectionism limits even more
2 types of aid
humanitarian aid
and
development aid
