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Economic Growth in Developing Countries

This article discusses the evolution of understanding economic components of development over time. It classifies economic components into production, resources, and population. Production includes agriculture, manufacturing, and services. Resources are classified as financial, technical, and natural. Unequal distribution of resources, particularly oil, has caused economic and social problems. While technology has aided development, destructive technologies endanger survival. Developing countries may require different technologies than developed ones. Rural-urban migration is now a major issue, and quality of life is declining in both rural and urban areas. The experiences of the last 50 years show more was learned about development, which must consider dynamic social realities and address urgent needs of the poor.

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मान तुम्सा
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59 views2 pages

Economic Growth in Developing Countries

This article discusses the evolution of understanding economic components of development over time. It classifies economic components into production, resources, and population. Production includes agriculture, manufacturing, and services. Resources are classified as financial, technical, and natural. Unequal distribution of resources, particularly oil, has caused economic and social problems. While technology has aided development, destructive technologies endanger survival. Developing countries may require different technologies than developed ones. Rural-urban migration is now a major issue, and quality of life is declining in both rural and urban areas. The experiences of the last 50 years show more was learned about development, which must consider dynamic social realities and address urgent needs of the poor.

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मान तुम्सा
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© Attribution Non-Commercial (BY-NC)
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Conclusions In this article the evolution of the economic components of development were discussed.

These components were classified into production, resources and population. This classification is made based on the evolutionary process of development understandings. Development started with growth, then resources and population were gradually recognized and introduced as the important components of development. Productivity included the three productive sectors of economy - agriculture, manufacturing and service. Traditionally the agricultural sector was the major source of economic growth. Development was assumed to be the transformation from agriculture to manufacturing activities, and resulted in reallocation of substantial resources from agriculture into the manufacturing sector. The process continued and the more recent shift was from manufacturing to service industry. Service industry has a qualitative nature, and its contribution to improve the quality of agricultural and manufacturing products plays a major role in economic development. Resources were classified into three main groups - financial, technical and natural resources. One of the major problems in terms of development activities is that resources are highly unequally distributed. The unequal distribution of resources is the main cause of the present economic and social problems. One of the most important world resources is oil. Oil is unevenly distributed, politically influenced and unwisely used. There are certain interconnections between technology, culture and natural resources. Technological achievements have been a very important factor in the process of economic development and industrialization, but the destructive technology (war technology) has endangered human survival in both industrialized and developing countries. Developing countries may not follow the same technological pattern as industrialized countries, because labor intensive and capital saving technology is relevant to the labor abundance and capital-scarce economies of developing countries. Migration was a very important factor in the process of industrialization. The situation is reversed, and rural-urban migration is a major problem in developing countries now. Despite massive rural-urban migration in many countries, the rural population is also rapidly increasing and the rural standard of living continuously declining. Annual unemployment rates are increasing faster than

employment rates, and governments cannot provide the required urban facilities. Therefore, the quality of life in both urban and rural regions is declining. Studying the economic components of development, one may conclude that the experiences of the last fifty years were no more than learning about development. Development studies have to be expanded beyond static economic theories into dynamic social realities. In developing countries, economic growth is indispensable and it is the foundation of the process of economic and social development, but growth must be based on appropriate production relevant to the urgent needs of the poor.

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