What%2520is%2520development_rev8

What%2520is%2520development_rev8 - What is Development? The...

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What is Development? The meaning of the term “development” has evolved– and continues to evolve – as time passes. More importantly, it’s meaning depends on who defines it!
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What is Development? Its Meaning & Measures Development has meant different things to different people. There are differing viewpoints on development: 1. The Traditional View: Embraced by economists and policymakers from Post-WWII through the 1960s. Growth 1. The Basic Needs Approach: Developed and adopted by the UN Development Program in late 1960s & early 1970s Human Welfare 1. Amartya Sen’s View of development Freedom to function at one’s potential
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View #1: Post-WWII through the 1960’s More specifically, it was about: The capacity of a nation, whose economic condition has been static for a long time, to generate & sustain annual Increases in GDP (output) at rates of 5% – 7% or more . A GDP growth rate that surpasses the population growth rate, and hence, a resulting annual increase in per capita GDP (or income) Increases in labor’s productivity (output/worker) Planned reallocation of labor resources from the agricultural sector to the manufacturing sector – i.e., industrialization.
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View #2: The UN Development Program’s (UNDP) view of Development (or “basic needs” approach ) Its all about Human Welfare During the late 1960s, economists noted that strategies emphasizing GDP growth had very limited effect in reducing poverty in the developing world. Why? Increases in GDP & per capita GDP doesn’t take into account distributional inequalities between the top 20% of income-earners and the bottom 80%. Increases in GDP are mainly attributed to the highest income-earning group or top quintile (20% of income- earning households). A given growth rate for the richest households has a greater impact on growth than the same growth rate for the poor.
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For instance: If GDP = $100 Million per year
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This note was uploaded on 11/10/2011 for the course ECON 4310 taught by Professor Staff during the Fall '08 term at Kennesaw.

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What%2520is%2520development_rev8 - What is Development? The...

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