CLASSICAL THEORIES OF ECONOMIC DEVELOPMENT.docx - CLASSICAL...

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CLASSICAL THEORIES OF ECONOMIC DEVELOPMENT In Partial Fulfillment of Requirements in Economic Development DEL ROSARIO, Geewen C. DELA ROSA, Kezia B. GALAC, Chen Chen F. GALES, Chiriath Jearem GARCIA, Rose Ann A. ICASIAM, Darlene Angela G. LABONITE, Jessa Joy M. NATALIO, Kyla Khristyne NAVARRO, Krizza Ann Olivia A. GROUP 3 BSA 1-D Introduction
“The ultimate resource in economic development is people. It is people, not capital or raw materials that develop an economy.” -Peter Drucker Economics is a social science that studies how products and services are created, distributed, and consumed. Macroeconomics, which studies the behavior of the economy as a whole, and microeconomics, which studies the behavior of particular individuals and companies, are the two main branches of economics. Economic development is the transformation of low-income, simple national economies into advanced industrial economies. Although it is often used interchangeably with the word "economic development," it is more widely used to characterize a transition in a country's economy that involves both qualitative and quantitative changes. In underdeveloped countries, the theory of economic development, how primitive and poor economies can grow into sophisticated and relatively prosperous ones is important, and it is generally in this sense that economic development problems are addressed. The COVID-19 public health crisis, the pandemic's economic shock, and public policy, industry, and individual responses to the pandemic have all combined to trigger the country's sharpest and fastest economic decline in history. The pandemic and the response to it in terms of fiscal policy have ebbed and flowed, and the economy remains fragile. Wendy Edelberg and Jay Shambaugh speak about how the current crisis blends into history and what the long-term economic ramifications would be. Policymakers would need to resolve issues such as rising corporate concentration, escalating automation, and drastic declines in labor force participation by some classes. The so-called pandemic has a biggest impact not only in our society but most especially to our economy. Based on Philippine Daily Inquirer, the Covid-19 pandemic, and the lockdown shuttered thousands of businesses. The government announced that about 4.5 million Filipinos have lost their jobs this year, with the unemployment rate at 10.4% - the highest in 15 years. This number could increase, depending on how strong the impact of the pandemic is on the Philippine economy in the coming months. In a report, the International Labor Organization (ILO) said that the effect of the crisis has been far-reaching, with underemployment surging as millions of employees were ask to work reduced hours or no hours at all. Manufacturing, transportation, and storage, hotels, and food service operations, as well as arts, entertainment, and recreation, are among the high-risk industries with the most job losses.
In connection with these scenarios, many economists developed theories about the economic growth and development years ago. The

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