Presentation on Development Economics
Development Economics constitutes, “Strategies designed to raise living standards in less economically developed countries” (Oxford, 2004).
Countries in the world are either developed or developing. The study of development economics aims to provide ways in which the process of development starts and improves the living standards of the people throughout the world.
Economic well being of countries can be analyzed by looking at the MACRO ENVIRONMENT and the MICRO ENVIRONMENT. Macro deals with the overall picture of the economy where one is interested to know the aggregates and factors like gross domestic product, inflation and unemployment. Therefore the studies will determine the well being of countries and the major issues they are facing. Micro will take into consideration the market size and the operations of individual firms. Household’s incomes will be discussed in order to have fair idea regarding the general economic health of the people.
The political structure is essential in any country. It is a backbone for economies as the political institution will be working for the interests of PUBLIC. Those countries that have weak political structures are unable to effectively implement economic policies vital for sustainable economic growth. Corruption is usually widespread in developing countries whose political
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CULTURAL ENVIRONMENT and Population
CULTURE of a country is also an important aspect in development economics. It will help to understand the values and aspirations of the people. In most of the developing economies the DEMOGRAPHY is such that countries are over populated. The available resources are limited and therefore people have to live on the subsistence wage rates. Having large families’ despite the increasing opportunity cost in having more children exist because people think that the more people the more is the income.
People who study development economics believe that human capital should be continuously improved. Those countries who invested more in human capital are more developed. Their standard of living and quality of life in terms of life expectancy, illiteracy rates and higher per capita income is superior to that of developing countries. These countries that have better human resource are investing more in their technological research. As a consequence over the years they have been able to maintain their LIFESTYLE and are not trapped in a vicious cycle of poverty as the developing countries.
Oxford. Development Economics (2004) 17 December 2008 <http://www.answers.com/topic/development-economics