Thus the vicious circle of poverty is resulted from various vicious circles related to demand side and supply side of capital.
Private sector investment plays the most significant role for providing those opportunities and support economic growth; it can be the only machine for economic enhancement with other initiatives to boost investments so that to make people feel they are the most needed.
Thus due to market imperfections, the underdeveloped countries fail to reach the optimum production function due to lack of optimum allocation of resources. The second objective of the economic development after the satisfaction of the survival needs according to the opinion of Michael Todaro is the general raise of the standards of living.
According to economists, Gerald Meier and Dudley Seers, these two concepts are different from each other and they stressed that economic development cannot be equated with economic growth. Development lessens people from low standards of living into proper employment with suitable shelter.
Thus in order to accelerate the pace of economic development the government must make necessary arrangement for the maintenance of law and order, defence, justice, security in enjoyment in property, testamentary rights, assurance to continue business covenants and contracts, provision for standard weights and measures, currency and formulation of appropriate monetary and fiscal policies of the country.
As earlier we stated, its termed as an increase in the real level of national output but this can only be caused by an increase in quality of resources, such as education, increase in quantity of resources and improvements in technology or increase in the value of goods and services produced by every sector of the economy.
Simon Kuznets has rightly observed that during the period of modern economic growth, the share of agriculture and agro-based industries in aggregate output GDP has recorded a sharp decline, while the shares of manufacturing industries, public utilities and certain service groups like professional, government etc.
All the of listed above are the standards of living. Thus to bring social and institutional change as per changing environment and to realise the modern values of life are very much important for accelerating the pace of economic development in a country.
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Proper Maintenance of Law and Order: It embraces all aspects of social behaviour, the establishment of law and order, scrupulousness in business dealing, including dealings with the revenue authorities, relationship between the family literacy, familiarity with mechanical gadgets and so on.
Moreover, investment in these countries should be channelised to build adequate social and economic overheads. To sum up, the economic situation in the country since the independence has been that the rich have become richer whereas the poor have become poorer.
Thus in order to attain a higher rate of development, the underdeveloped countries should adapt only that type of technology which can suit their requirements. Thus due to market imperfections, the underdeveloped countries fail to reach the optimum production function due to lack of optimum allocation of resources.
With all this development in the beginning of the 21st century poverty was still there. Developing countries like Mexico, Brazil and India have been applying technologies developed by advanced countries as per their own conditions and requirements.
Another vital part of making a country economically developed are investments that help to develop the manufacture and production of the sufficient amount of products enough to be distributed in order to cover the vital needs of the population and guarantee its well-being and therefore economical development.
Movements in structural transformations in economic growth can also be analysed in the form of changes in the distribution of labour force among three major sectors.
It shows change in the way goods and services are produced but on the other hand economic growth only indicates an increase in significant output, it may or may not involve development. In the past two decades, the Palestinian economy was going through fluctuating behavior.
Underdeveloped countries are suffering from backward social factors.
Therefore, at certain levels, availability of foreign resources broadly determines the level of economic development in a country.
For example, Mohammadi, Maleki and Gashti analyzed the effect of governmental expenditure composition on the Economic development of economic cooperation organization countries ECO:.
Economic development refers to the raising of the productive capacity of a country through the introduction of policies designed to enhance the productivity of land, labor and capital, raise standards of living and reduce or alleviate the poverty of the inhabitants of the country.
This free Economics essay on Essay: Economic growth is perfect for Economics students to use as an example.
Nevertheless, on the priorities of economic development is the creation of a competitive business environment where competition will be the driving force for the development of the companies and therefore the economic development of the country.
and Smith, S.C., Economic Development, Eight Edition, Pearson Addison-Wiley (), pp Cite This Essay To export a reference to this article please select a referencing stye below.
Economic Development is the sustaining of concerted actions of policy makers and communities that promote the standard of living and economic health of a categorical area or community. Economic development can withal be referred to as the quantitative and qualitative transmutations in the economy.
Economic development, on the other hand is an increase in the economic standard of living of a countrys population with constant growth from a stagnant state to a higher level of equilbrium.
It implies changes in income, saving and investment along with accelerating changes in socio- economic structure of a country.Essay economic development