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ECONOMIC ECONOMIC DEVELOPMENTDEVELOPMENT

IntroductionIntroduction

Economic Growth and Economic Economic Growth and Economic Development: which comes first?Development: which comes first?

DevelopmentDevelopment – it is a dynamic and – it is a dynamic and progressive processprogressive process

GrowthGrowth – it is the result of the – it is the result of the process or the product of process or the product of development.development.

ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT

-is a process by which the population of a country improves it -is a process by which the population of a country improves it efficiency to get necessary goods and services for itself and thereby efficiency to get necessary goods and services for itself and thereby improves individual standard of living levels and economic welfare. improves individual standard of living levels and economic welfare.

ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT

Economic Development is a dynamic and progressive process of improving human conditions like:Economic Development is a dynamic and progressive process of improving human conditions like:Reduction/elimination of Reduction/elimination of povertypoverty

Reduction/elimination of Reduction/elimination of unemploymentunemployment

Reduction/elimination of Reduction/elimination of illiteracyilliteracy

Reduction/elimination of Reduction/elimination of inequalityinequality

Reduction/elimination of Reduction/elimination of diseasesdiseases

It also Involve:It also Involve:Economic Factors: Economic Factors: Capital, technology, marketCapital, technology, market

Non – Economic Factors: Non – Economic Factors: Culture, religion, government, educationCulture, religion, government, education

ECONOMIC GROWTH & DEVELOPMENTECONOMIC GROWTH & DEVELOPMENT

Three Core Values of DevelopmentThree Core Values of Development

1.1.Sustenance: The ability to meet basic needs.Sustenance: The ability to meet basic needs.

2.2.Self-Esteem: To be a person.Self-Esteem: To be a person.

3.3.Freedom from Servitude: To be able to choose.Freedom from Servitude: To be able to choose.

ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT

Three objectives of development:Three objectives of development:

1.1.To increase the availability and widen the distribution of basic life-sustaining goods.To increase the availability and widen the distribution of basic life-sustaining goods.

2.2.To raise levels of living.To raise levels of living.

3.3.To expand the range of economic and social choices.To expand the range of economic and social choices.

ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT

Obstacles to DevelopmentObstacles to Development

1.1.Capital deficiencyCapital deficiency

2.2.Unskilled manpower or lack of managerial skillsUnskilled manpower or lack of managerial skills

3.3.Over populationOver population

4.4.Man himself is the greatest obstacle to developmentMan himself is the greatest obstacle to development

ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT

The Four Elements in DevelopmentThe Four Elements in Development

-Human resources -Human resources

-Natural resources-Natural resources

-Capital formation-Capital formation

-Technological change and Innovations-Technological change and Innovations

ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT

Economic GrowthEconomic GrowthEconomic growth implies increase in gross product or a continuous and steady increase in national Economic growth implies increase in gross product or a continuous and steady increase in national income. income.

Economic growth of a community is reflected in people’s high standard of living, better food and housing, Economic growth of a community is reflected in people’s high standard of living, better food and housing, improved education and medical facilities and advanced means of transport and communication.improved education and medical facilities and advanced means of transport and communication.

ECONOMIC GROWTHECONOMIC GROWTH

Modern Economic GrowthModern Economic Growth

It refers to the economic growth of the presently advanced countries. It refers to the economic growth of the presently advanced countries.

The features of this economic growth can be summarized by the following:The features of this economic growth can be summarized by the following:Sustained increase in output per headSustained increase in output per head

Sustained technological progressSustained technological progress

Balance population growthBalance population growth

Sustained capital accumulation Sustained capital accumulation

Rising wagesRising wages

High rates of change of economic structureHigh rates of change of economic structure

Transformation of social and other section Transformation of social and other section

  

ECONOMIC GROWTHECONOMIC GROWTH

  

Measurement of Economic GrowthMeasurement of Economic Growth

The measurement of the Gross National ProductThe measurement of the Gross National Product

The measurement of the Gross Domestic ProductThe measurement of the Gross Domestic Product

Per capita IncomePer capita Income

ECONOMIC GROWTH & DEVELOPMENTECONOMIC GROWTH & DEVELOPMENT

ECONOMIC GROWTH & DEVELOPMENTECONOMIC GROWTH & DEVELOPMENT

Colin Clark Growth ConceptColin Clark Growth Concept

Stage Stage 11

Agricultural Agricultural DevelopmentDevelopment

Where agriculture is the principal source of employment and incomeWhere agriculture is the principal source of employment and income

Stage Stage 22

Manufacturing Manufacturing Industry DevelopmentIndustry Development

Industries become the major economic activityIndustries become the major economic activity

Stage Stage 33

Service IndustryService Industry Development Development

Service industry grow to be the dominant feature of the economyService industry grow to be the dominant feature of the economy

Country’s Classifications according to statusCountry’s Classifications according to status

  

The First World (Highly Developed)The First World (Highly Developed)It comprises the highly economically advanced, industrial countries, like the United States, Western Europe, Japan and Australia etc.It comprises the highly economically advanced, industrial countries, like the United States, Western Europe, Japan and Australia etc.

  

The Second World (Developed)The Second World (Developed)It is the group of countries which are practicing the economic system of communism and which are also economically advanced. These countries are characterized largely by having “centrally planned economies.” In such groups are included It is the group of countries which are practicing the economic system of communism and which are also economically advanced. These countries are characterized largely by having “centrally planned economies.” In such groups are included the Soviet Union and the Eastern European Countries like Czechoslovakia, Poland and East Germany.the Soviet Union and the Eastern European Countries like Czechoslovakia, Poland and East Germany.

  

The Third World (Less-Developed)The Third World (Less-Developed)Countries grouped as the third world include all of those often described as the developing countries. They are poor, and although many of them are improving their material welfare, their income levels are very low compared to those of the Countries grouped as the third world include all of those often described as the developing countries. They are poor, and although many of them are improving their material welfare, their income levels are very low compared to those of the richer countries.richer countries.

ECONOMIC GROWTH & DEVELOPMENTECONOMIC GROWTH & DEVELOPMENT

End of Discussion

ECONOMIC GROWTH & DEVELOPMENTECONOMIC GROWTH & DEVELOPMENT

Website:Website:www.principlesofeconomics.net

Based on your personal observation, make a short discussion of the current status of the Philippine economy:

Guidelines: Government system and its performance Various social unrest and crimes Environmental status

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