Economic development- is acoomodation and the science of making choices. We see a shift from
underdevelopment to development. Dudley seres, economic development should focus on
eliminating poverty, social inequality, he is perceived as father. Increase per capita gdp is the
purpose of economic development. However we want economic development to improve the
quality of life. You want to bring a change in the life of people, and you will be a part of this
What is good for one country is not good for the other. Growth refers to an increase in per capita,
where as development refers to better social well being. Economic growth is a shorter period,
less wide, increase only per capita income. It’s a multi dimentional approach. Includes micro,
macro, econometrics(empirical). 1970s saw shift in policies and then another change in policies.
Developing countries and developed are distinguished. North refers to industrialized south does
not. Developing country contrains the lease amount of mallace
Low per capita income, inequality, low standerd of living, india, Pakistan, Bangladesh. What are
the common characteristics of developing, low percapita, low standard of living, high income
inequality, difference between the top 20 and the bottom 20, high poverty rates, most individuals
are living on less than a dollar a day, high dependence rate, you are dependant on parent.
Agriculture is explaination of this, more agriculture means you need more health. This
subsistence economy, you need many children to manage your farms, cultural norms, missing
woman. 1945 amartaya sen has tried calculate through surveys that woman are missing from the
maps because parents have the selective bias towards males and females, because of abortions.
Almost a million woman are missing. Two things about the children. Substitution and the income
effect. Income effect, when your income increases you don’t want more children, you increase
quality rather than quantity. This is seen in developed countries and not developing countries. In
the developing countries, financial markets are not developed, jewlers play a huge role. Low
level of trade What are the difficult characteristics, basic health care, nutrition, higher
dependancey,essentially what was stated above. More dependence on agriculture and imperfect
financial markets. These are typical characteristics of developing countries.
Poverty is an issue that will be covered a lot in this course. If I don’t have income this is not the