Development The process of improving the quality of all human lives and capabilities by raising people’s levels of living, self-esteem, and freedom.Adam Smith was the first “development economist” and that his Wealth of Nations, published in 1776, was the first treatise on economic developmentDevelopment economicsDevelopment economics is drawing on principles and concepts from other branches of economics. But it is a distinct field of study.Traditional economicsIt is concerned with the efficient allocation of scarce resources like utility, profit maximisation, equilibrium outcomes (assumes rationality)Political economicsIt looks at the economic activity in a political context, and it's concerned with the rule power and influence over the allocation of resources. Development economics It can be seen as an extension of traditional economics, and so development economics is concerned with the efficient allocation resources as well as sustained growth and economic social political institutional mechanisms that are needed in order to improve.Development economics is looking what's needed in order to affect major transformations, in the institution and the structure in order to achieve economic progress and improve standards of living.Concepts and issues in the goals of development economics are coming from value judgments. For example, poverty, we believe that the reduction of property is desirable, and we are seekingto reduce poverty, so that would be good to reduce poverty. And so development is necessarily involving these values or value judgments.Development issues need to be examined within the context of social systems.Values, attitude, the power structures of society are going to have an interdependent relationship with economic factors. For example, prices, and so these noneconomic factors shouldn't be ignored, and can be critical to the success or the failure of development efforts.
Development and economic sense traditionally meant sustained growth in income per capita and so economic well being is measured in levels and growth of gross national income.It was also a focus on industrialisation, but economic development has since been redefined in terms of poverty, inequality on unemployment, alongside growth.Globalization The increasing integration of national economies into expanding international markets.Core values of development and objectives.1.Substance, So this is the ability to meet basic needs. This includes things like food, shelter, health and so one of the objectives of development is going to be to increase theavailability and distribution of basic goods and services.2.Self esteem, This means things like respect, dignity, self determination, and so one of theobjectives of development is going to be to enhance self esteem alongside material wealth and finally, freedom from servitude.