Scribd
Upload
240 views18 pages

Understanding Economic Development Basics

This document discusses the key concepts of economic development including the basic economic problems faced by all nations, how goods are produced and distributed based on different economic systems, and the meaning and classifications of economic development and growth. The three basic economic problems are what to produce, how to produce, and for whom to produce. Countries are classified as highly developed, intermediate/developing, or underdeveloped based on their gross national product. While growth can be measured, development involves both economic and non-economic changes that improve human conditions.

Uploaded by

Stanley Aquino
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
240 views18 pages

Understanding Economic Development Basics

This document discusses the key concepts of economic development including the basic economic problems faced by all nations, how goods are produced and distributed based on different economic systems, and the meaning and classifications of economic development and growth. The three basic economic problems are what to produce, how to produce, and for whom to produce. Countries are classified as highly developed, intermediate/developing, or underdeveloped based on their gross national product. While growth can be measured, development involves both economic and non-economic changes that improve human conditions.

Uploaded by

Stanley Aquino
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Real Concept of Development
  • Basic Economic Problems
  • The Meaning of Economic Development
  • Classifications of Countries
  • Development and Growth

REAL CONCEPT OF

DEVELOPMENT
LESSON 1 | ECONOMIC DEVELOPMENT
“A better quality of life has been the objective
of societies and nations.”
Basic Economic Problems
- Every nation, rich or poor, has economic problems.

- There are more serious and widespread in poor countries.

- Economic problems exist because:


◦ (1) Resources are limited; (2) Human wants are unlimited.
Basic Economic Problems
- Three Basic Economic Problems:
1. What goods to produce and in what quantities?
2. How to produce the goods?
3. For whom the goods are produced?
What goods are to be produced?
- It is not really possible to produce all the goods that
people want for their satisfaction.

- a system of priority has to be established.

- Basic needs or people are given top priority.


What goods are to be produced?
CAPITALISM
- Goods which command the highest price and profit.

COMMUNISM
- for service and not for profit, goods produced according to
the needs of the people.
What goods are to be produced?
SOCIALISM
- combination of capitalism and socialism. Production of
goods is based on needs and profits.
How are the goods produced?
- The ideal situation is to produce the goods with the most
efficient method.

- This involves machines, technology, management, and


skills.

- Many developing countries are deficient on these.


For whom are the goods produced?
- The distribution of goods is determined by the economic
system:

1. CAPITALISM
- Allocated in the market.
For whom are the goods produced?
2. COMMUNISM
- goods are distributed according to the needs of the
people. It is a classless society. There is equality.
For whom are the goods produced?
3. SOCIALISM
- both the market and the state determine the distribution
of goods.
- Essential and strategic goods are being allocated by the
government at cost.
- Goods that are given to the private sector are sold for
profit.
The Meaning of Economic
Development
- It is a progressive process of improving human conditions,
such as the reduction or elimination of poverty,
unemployment, illiteracy, inequality, disease and
exploitations.
The Meaning of Economic
Development
- involves both economic factors (capital, technology, and
market) and non-economic factors (culture, religion,
government, education)
Classifications of Countries
- The economy of a country is measured by its Gross
National Product (GNP).

- The basis of comparison is the economy of highly


developed countries.
Classifications of Countries
Highly Developed Countries (USA, Canada, Japan, Australia)

Intermediate/Developing Countries (Argentina, Spain,


Poland, Saudi Arabia)

Underdeveloped/Less developed Countries (India,


Philippines, Vietnam, Kenya)
Development and Growth
- Development is a progressive and dynamic process.
- Growth is the result of a process.
- Therefore: growth is the product of development.
Development and Growth
- Economic growth is visible and measurable.

Examples: roads, vehicles, houses, buildings, hospitals,


banks, schools, etc.
Development and Growth
- Development means more than imposing buildings,
beautiful houses, elegant cars, money or modern machines.

- It includes fundamental changes in society, ways of life,


values and institutions.

REAL CONCEPT OF DEVELOPMENT LESSON 1 | ECONOMIC DEVELOPMENT
“A better quality of life has been the objective of societies and nations.”
Basic Economic Problems - Every nation, rich or poor, has economic problems. - There are more serious and widespread in poo
Basic Economic Problems - Three Basic Economic Problems: 1. What goods to produce and in what quantities? 2. How to produc
What goods are to be produced? - It is not really possible to produce all the goods that people want for their satisfaction.
What goods are to be produced? CAPITALISM - Goods which command the highest price and profit. COMMUNISM - for service and
What goods are to be produced? SOCIALISM - combination of capitalism and socialism. Production of goods is based on needs a
How are the goods produced? - The ideal situation is to produce the goods with the most efficient method. - This involves m
For whom are the goods produced? - The distribution of goods is determined by the economic system: 1. CAPITALISM - Allocat
For whom are the goods produced? 2. COMMUNISM - goods are distributed according to the needs of the people. It is a classle

You might also like