ECONOMIC
DEVELOPMENT
A Key Driver of Social Change and Human Well-Being
PRESENTED BY
Mae Ann Cruzado
Hya Shanney De Leon
Cristina Galvan
Camille Reyes
INTRODUCTION TO ECONOMIC
DEVELOPMENT
conomic development is a broad concept that refers to
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the process of improving the economic well-being and quality
of life of a nation, region, or community. It's a more complex
idea than simple economic growth. While economic growth is
about increasing a country's production of goods and services
(measured by GDP), economic development is about improving
people's lives
KEY COMPONENTS OF ECONOMIC
DEVELOPMENT
Economic development isn't just one thing; it involves several interconnected
components:
Human Development: This focuses on improving people's lives through better health,
education, and opportunities. When people are healthier and more educated, they can be
more productive and innovative.
Infrastructure:Building and maintaining essential facilities like roads, bridges, power grids, and
communication networks are crucial. Strong infrastructure makes it easier for businesses to
operate and for people to access services.
KEY COMPONENTS OF ECONOMIC
DEVELOPMENT
Economic development isn't just one thing; it involves several interconnected
components:
Institutional Improvement: This involves creating stable and fair political, legal, and financial
systems. Good governance, a strong rule of law, and a reliable banking sector are essential for
attracting investment and ensuring economic stability.
Equity and Inclusion: A developed economy aims to reduce poverty and inequality. This
means ensuring that the benefits of economic growth are shared widely across all segments of
society, regardless of gender, race, or social background.
ECONOMIC GROWTH VS. ECONOMIC
DEVELOPMENT
It's easy to confuse these two terms, but they're distinct.
conomic Growth is a quantitative measure. It's the increase in the output of a country's economy over
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time. For example, if a country's GDP goes up by 3% in a year, it has experienced economic growth. It doesn't,
however, tell us anything about how that wealth is distributed or if it has improved people's lives.
conomic Development is a qualitative measure. It's about a country becoming a better place to live. A
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country can have economic growth without having economic development. For example, a country might have a
high GDP due to a few wealthy individuals or corporations, but the majority of its population could still be living in
poverty with no access to basic services. Conversely, a country could focus on development by investing in
education and healthcare, which may not immediately boost GDP but will improve the quality of life in the long run.
In essence, economic development uses the gains from economic growth to create a more prosperous, healthy,
and educated society. It's the ultimate goal of most national policies.
IMPORTANCE IN SOCIETY AND SOCIAL
CHANGE
Economic development is a powerful force for social transformation. Here's why it
matters:
Poverty Reduction: Economic development creates jobs, raises incomes, and provides
opportunities, which are the most effective ways to lift people out of poverty.
Improved Quality of Life: It leads to better social indicators like higher life expectancy, lower
infant mortality rates, and improved literacy.
Empowerment and Social Mobility: As an economy develops, it often leads to a more
educated and skilled workforce. This allows individuals, especially those from marginalized
groups, to move up the social ladder. It empowers people to participate more in society and
politics.
Increased Innovation: A strong economy supports research, technology, and
entrepreneurship. This leads to new ideas and solutions that can address various social
problems, from environmental issues to public health challenges.
WHY IT MATTERS FOR
DEVELOPING COUNTRIES LIKE
THE PHILIPPINES ?
For a developing country like the Philippines, economic development is not a
luxury—it's a necessity for addressing deeply rooted challenges.
Reducing Poverty and Inequality: While the Philippines has experienced significant economic
growth, poverty and inequality remain major issues, particularly in rural areas and among vulnerable
communities. Economic development aims to create a more inclusive growth that benefits everyone,
not just a few.
Improving Infrastructure: The Philippines faces a significant infrastructure gap, with a lack of reliable
transportation, power, and internet access. Economic development can fund and build the
infrastructure needed to support businesses, connect communities, and improve the quality of life for
all Filipinos.
Creating High-Quality Jobs: Many Filipinos work in low-wage jobs or rely on remittances from
overseas. Economic development focuses on creating diverse, high-value industries (like technology
and manufacturing) that offer higher incomes and better job security, so Filipinos don't have to leave
their families to find work.
Strengthening Human Capital: Investing in education and healthcare is a cornerstone of economic
development. For the Philippines, this means improving the quality of its education system and
providing better healthcare services to ensure a healthier and more skilled workforce. This is key to
competing in the global economy and achieving the country's long-term development goals.
HISTORICAL PERSPECTIVES
& THEORIES
Economic development has evolved from a simple focus on growth to a
more holistic, people-centered approach. This shift is reflected in the
key theories and models throughout history.
1. Classical and Modern Theories
Adam Smith (Classical): Often John Maynard Keynes Amartya Sen
called the "father of economics," (Modern): In contrast to (Contemporary): Sen shifted
Smith's theory is centered on the Smith's hands-off approach, the focus from income and
free market and the "invisible Keynes argued for a wealth to "capabilities" and
hand." significant role for government "freedoms."
intervention.
2. Stages of Development (Rostow's Model)
Traditional Society: Characterized by subsistence agriculture, a lack of
technology, and a rigid social structure. Economic output is limited.
Preconditions for Take-off: A period of transition. Institutions are
established (e.g., banks, political stability), and investment in
infrastructure begins.
Take-off: This is the most critical stage. Industrialization accelerates,
and sustained economic growth becomes the norm. Key industries
emerge and drive the economy.
Walt Whitman Rostow proposed
Drive to Maturity: The economy diversifies, and technological
a model that outlines five stages innovation is widespread. The nation's economy is integrated into the
of economic development. He global market.
suggested that all countries Age of High Mass Consumption: The economy shifts towards
follow this path, though the producing consumer goods and services. A high standard of living and
speed may vary. widespread consumption become common.
SHIFTS IN THINKING
Historically, the dominant view was that economic growth (the increase in GDP)
was the primary goal.
This led to a major shift towards people-centered development. This new
perspective, championed by thinkers like Amartya Sen, focuses on human
development as the true measure of progress.
How do we know if a country is truly
developing?
KEY INDICATORS OF ECONOMIC
DEVELOPMENT
GDP vs GNP
GDP – measures the value of goods and services produced
within the country.
GNP – GDP plus the income earned by Filipinos abroad
(remittances).
In the Philippines, remittances from Overseas Filipino
Workers (OFWs) play a crucial role in boosting GNP.
KEY INDICATORS OF ECONOMIC
DEVELOPMENT
Human Development Index(HDI)
Goes beyond income by combininglife expectancy,
education, and standard of living.
Example: The Philippines ranksHDI 0.699 (2022, UNDP) –
“Medium Human Development.”
HDI reminds us that true progress is aboutlonger,
healthier, and more educated lives.
KEY INDICATORS OF ECONOMIC
DEVELOPMENT
Poverty, Literacy, and Employment
Poverty incidence: 16.4% of Filipinos live below the poverty
line (PSA, 2023).
Literacy rate: Over 90%, but functional literacy gaps remain.
Employment: Job creation lags behind population growth,
leading to underemployment.
These indicators show whether people are truly benefiting
from growth.
KEY INDICATORS OF ECONOMIC
DEVELOPMENT
Inequality Measures
Gini coefficientreveals the gap between rich and poor.
In the Philippines, wealth remains concentrated in the hands
of a few.
“Growth is meaningless if prosperity is not shared.”
FACTORS AFFECTING ECONOMIC
DEVELOPMENT
Natural Resources
The availability of land, minerals, forests, and agricultural resources
directly influences economic development. Countries rich in natural
resources can build industries, create jobs, and attract foreign investments.
However, poor management or overconsumption can lead to poverty and
environmental damage. For example, deforestation and mining abuse often
result in massive flooding and ecological imbalance in the Philippines.
FACTORS AFFECTING ECONOMIC
DEVELOPMENT
Human Capital
Education, skills, health, and population quality determine the
productivity of a country’s workforce. A healthy and educated population
leads to innovation, efficient labor, and stronger economic output. This is the
most valuable resource of a nation. With sufficient education, experience,
and good health, people are more capable of contributing to the economy.
For instance, advancements in technology create higher-quality products,
generate opportunities, and open more jobs.
FACTORS AFFECTING ECONOMIC
DEVELOPMENT
Technology and Infrastructure
Advanced technology such as transportation, communication, and energy
systems accelerates economic growth by connecting markets and improving
productivity. In the Philippines, modern technology has made people and
businesses more productive and connected, strengthening the economy.
Governance and Institutions
Good governance ensures transparency, accountability, and reduced
corruption. Effective leadership brings trust, order, and stability. When institutions
are strong and corruption levels are low, more investors are encouraged to
participate, and economic development becomes faster.
FACTORS AFFECTING ECONOMIC
DEVELOPMENT
Globalization and Trade
Access to international markets and trade agreements, such as importation
and exportation, allows countries to sell products globally and attract foreign
investment. However, excessive dependence on other countries can weaken the
economy, especially during global crises. For example, wars between oil-exporting
nations cause oil price hikes, which in turn increase the cost of goods in the
Philippines.
IF WE ARE GROWING, WHY DOES
PROGRESS FEEL SO SLOW?
CHALLENGES TO ECONOMIC
DEVELOPMENT
Poverty and Inequality
Millions remain poor despite decades of GDP growth.
The “rich-poor divide” widens, with luxury development beside
urban slums.
Inequality prevents inclusive and sustainable progress.
CHALLENGES TO ECONOMIC
DEVELOPMENT
Unemployment and Corruption
Unemployment & underemployment block upward mobility for many
Filipinos.
Corruption drains billions meant for schools, hospitals, and
infrastructure.
Weak governance discourages both foreign and local investments.
CHALLENGES TO ECONOMIC
DEVELOPMENT
Environmental Degradation
Rapidurbanization and mining threaten forests and water resources.
The Philippines is among the most vulnerable to climate change and
natural disasters.
“Development that destroys the environment is self-defeating.”
CHALLENGES TO ECONOMIC
DEVELOPMENT
Global Crises
COVID-19 pandemic exposed weaknesses in health systems and job
security.
Climate disasters (typhoons, floods) repeatedly set back progress.
Global conflicts affect fuel, food prices, and trade.
Local development cannot be isolated from global shocks.
STRATEGIES FOR ECONOMIC
DEVELOPMENT
[Link] and Innovation
Building industries in manufacturing, services, and technology promotes economic
growth by creating jobs and raising productivity. Social work ensures that these economic shifts
benefit all people, especially vulnerable populations.
Promoting social entrepreneurship: Social workers help create and support
enterprises that prioritize social goals over profit. These enterprises provide
jobs and deliver essential services in disadvantaged communities.
Advocating for workers’ rights:Social workers push for policies and practices
that protect workers, ensure fair wages, and maintain humane working
environments.
Fostering innovation with a social lens: Social work supports new services
and policies that meet evolving societal needs, such as using digital tools for
counseling or community organizing.
STRATEGIES FOR ECONOMIC
DEVELOPMENT
2. Investment in Education and Health
Developing human capital through quality education and accessible healthcare is
crucial because a skilled and healthy population is the backbone of a strong economy. For
example, scholarship programs and universal health care strengthen the workforce. Social work
ensures these investments reach the most vulnerable by:
Increasing equitable access by breaking down barriers such as poverty,
discrimination, or language.
Supporting at-risk students through counseling, crisis intervention, and
resource referrals.
Promoting public health by providing case management, patient education,
and advocacy.
Influencing health policy to address funding gaps, workforce shortages, and
equitable access to care.
STRATEGIES FOR ECONOMIC
DEVELOPMENT
3. Sustainable Development
Growth must protect the environment while uplifting people. This includes renewable
energy, eco-tourism, and green industries such as solar and wind projects. Social work
integrates people and planet by:
Advocating for environmental justice, ensuring marginalized communities
do not bear the brunt of environmental degradation.
Promoting local community development and demand-driven economies
that encourage self-reliance and respect for local ecosystems.
Building resilient communities prepared for climate change and natural
disasters through social protection systems.
Advocating for policies that address climate inequalities and promote
sustainable financial systems.
STRATEGIES FOR ECONOMIC
DEVELOPMENT
4. Government Policies and Inclusive Growth Programs
Government must implement policies that benefit both rich and poor,
focusing on fairness and social justice. An example is the Pantawid Pamilyang
Pilipino Program (4Ps). Social workers play a vital role by:
Analyzing and advocating for better policies.
Empowering marginalized groups to have a voice in decision-
making.
Strengthening social protection programs for disadvantaged
sectors.
Evaluating policies and programs to ensure they deliver real
outcomes.
STRATEGIES FOR ECONOMIC
DEVELOPMENT
5. International Cooperation and Aid
Working with other countries through trade, investment, and technology transfer
strengthens development. While foreign aid can be helpful in times of disaster, it must
promote empowerment rather than dependency. Examples include international aid
after Typhoon Ondoy. Social work contributes by:
Promoting cooperatives that empower communities and reduce
inequality.
Ensuring aid is distributed ethically and equitably.
Advancing global solidarity and sustainable development
partnerships.
Collaborating across borders to address issues such as human
trafficking and global health crises.
ECONOMIC DEVELOPMENT &
SOCIAL WORK
The Role of Social Workers
Social workers address inequality and social exclusion
that limit development.
They serve as bridges between policy and people,
ensuring that progress reaches the most vulnerable.
Development without social justice is incomplete.
ECONOMIC DEVELOPMENT &
SOCIAL WORK
Advocacy for Social Justice
Social workers fight for inclusive policies in health, education,
housing, and labor.
They give a voice to marginalized groups— the poor, women,
children, indigenous peoples.
By challenging corruption and injustice, they protect
communities from being left behind.
ECONOMIC DEVELOPMENT &
SOCIAL WORK
Community Empowerment
Social work promotes livelihood programs and skills training that
build self-reliance.
Organizing communities strengthens leadership, participation,
and resilience.
Empowered communities are better prepared to face poverty,
disasters, and inequality.
ECONOMIC DEVELOPMENT &
SOCIAL WORK
Linking Growth with Human Well-Being
Economic growth is meaningless if it does not improve health,
education, and dignity.
Social workers ensure that national progress translates into real
human development.
True development is when every Filipino, especially the poor,
feels the change.
CONCLUSION
Economic development is not just about numbers or GDP growth
—it is about people, dignity, and opportunity. True progress is
measured when communities are lifted out of poverty, when
inequality is reduced, and when every Filipino feels the impact of
change.
TO LEAVE YOU WITH A THOUGHT:
Do you think the Philippines today is truly moving
toward real development that benefits everyone—or
are we still trapped in growth that leaves many
behind?