Essay on Economic Growth and Development

Industrial growth in the United States, transformed society in the US by changing the way things are manufactured. One big change was the discovery of electricity, which greatly changed the way things would be manufactured. Not only the discovery but the ability to bring it to manufactures. Thomas Edison's Electric Light Company effectively brought electricity to manifold customers. This enabled manufacturing to change tremendously and quickly (Norton, 2015.) The desire to compete also affected the way things would be manufactured. After the American Revaluation many in North America desired to compete with manufactures in England this was pursued by attempting to duplicate the process by which products were manufactured. One example of this

Development: It is increasing the standard of living by considering economics is the key function. Every theory of development has functions of economics. It plays a vital role in social science. It is widely considered as “committed” i.e., serves an interest especially class interest. Economists have equal important like scientists, because these people concern with important issues like economic growth, employment and development etc., Economic theories of development have own way of History, projections, philosophical bias, practice, language and relations. These properties of theories depend on particular

Economic Develop is a term that is commonly used to describe the process whereby simple low-income national economies are transformed into modern industrial economies. (Krueger). It includes the policies and practices a country uses, (i.e. environmental issues, educational standards, gross domestic product, (per capita), healthcare levels, infrastructure and the availability of housing), to progress the economic, political, and societal good of its people and generally surmises and describes changes within a country’s economy; in terms of assets, incomes, savings and socioeconomic structure.

In his first chapter he starts off about why growth even matters. Economic growth frees the poor from hunger and diseases. Economy wide growth in GDP per capita translates into rise in incomes for the poorest of the poor lifting them out of poverty. Taking the example of Pakistan, the author describes how 31% of the country lives in extreme poverty with incomes less than $1 a day. Infant mortality, hunger, debt bondage are directly associated with income.

Economic development involves actions that are sustained and concerted by policy makers and the entire community. These actions lead to improved standards of living as well as the economic health within a specified area either in the local, regional or global environment. Economic development can also be termed as the qualitative and quantitative changes that occur within an economy. For economic development to take place there has to be contributions by various factors. Some these factors can lead to economic development if they are appropriately managed (Mohr, 2012). There is a lot of interest in macroeconomics when it comes to these factors of economic development. Macroeconomics deals with performance, behavior, structure and the entire decision making of an economy in general as opposed to looking at individual markets. This encompasses national, regional as well as the global economies. Through microeconomic there is the aggregation of indicators like GDP, price indexes and the rates of unemployment that enable the understanding of the functioning of the entire economy. This paper will look at various factors of economic development and how they contribute to economic development.

In the highly materialistic world that we live in, success is generally measured in financial terms. The same is true in politics, where the success of a politician, especially the President, is measured by how well the economy did during his term in office. It is specifically measured by how well they bring down unemployment, grow the economy and fight inflation. Two basic modes of thought on the subject have pervaded public policy since World War II: supply-side and demand-side economics.

Traditional economic theory states that we should shape and weld resources, institutions, and technology to foster long-run growth. One of the main reasons that economists encourage economic growth is the belief that economic growth would alleviate the living standards in developing nations and minimize inequality in developed nations. Economists David Dollar and Aart Kraay did an empirical study on the benefits of economic growth and concluded that “growth on average does benefit the poor as much as anyone else in society” (Dollar, and Kraay, 2002). In addition, they found that growth-stimulating policies have the ability to “raise average incomes with little systematic effect on the distribution of income” (Dollar, and Kraay, 2002). For this reason, most economists believe that economic growth should still be pursued regardless of the country’s well-being.

“Economic development is something much wider and deeper than economics, let alone econometrics. Its roots lie outside the economic sphere, in education, organization, discipline and, beyond that, in political independence and a national consciousness of self-reliance.”

Eyeballing any cross sectional data on growth across countries shows that countries grow at different rates. Many theories try to explain this phenomenon with emphasis with capital accumulation being one of them. I will start by developing the standard neoclassical growth model as developed by Solow(1956)[1]. I will then proceed to discuss the extensions that have been made to this basic model in an attempt to better understand actual growth figures, for e.g. the standard neoclassical model cannot explain the magnitude of international differences in growth rates. Mankiw[2] points out that “the model can explain

Economic growth is a topic constantly discussed in Why Nations Fail by Daron Acemoglu and James A. Robinson and Saving Capitalism by Robert B. Reich .The authors in both books seem to believe that we live in a society in which economic growth is not at its finest, but there is still hope. More detailed, Daron Acemoglu and James A. Robinson blame extractive institutions for the slow growth because in this occasion the political and economic systems are structures in a way to benefit the elite by extracting resources from the rest of the society . Similarly Robert B. Reich states that those who control an increasing share of the wealth also have gained growing influence over the rules by which the market

Economic success defines a nations success in modern day society. Sure India has had a prosperous past. But as we continue in this post colonial world, the need to prove ourselves has only been higher. It has been over 60 years since we achieved independence and became a republic, we are yet to prove our “potential” to the world. The world’s parameter to determine our capabilities are high, just as it ought to be to encourage each nation to develop to its fullest ability. Competition generally helps nations to do better and achieve greater. When we first gained independence much of the idea of development and being an economic super power was furthered by the socialist of welfare oriented governance but since the end of the Soviet Russia

The process of planning in India has always been sensitive to the needs of the poor and the plight of excluded from its early days. Government of India sought to solve all the socio-economic problems with the help of rapid and sustained economic growth, because our planners were working with the view that as the size of national income will be high individuals can share more and vice-versa (Hashim, S.R., 2007). Mainly because of this reason economic growth has always been the centre of objectives of India’s Five Year

Economic Development applies to the context of people’s sense of right and wrong. The definition given by Michael Todaro suggests it is an increase in living standards, improvement in self-esteem, needs and freedom from oppression as well as greater choice; whereas economic growth is necessary, but not a condition of economic development. Community economic development exists in all developed countries but varies

The causes of economic development in a nation can vary, but popular arguments for their success is the geographical location of that nation, and their amount of natural resources. The broadening of economic wealth for a nation could lead to many outcomes, such as conflict, shifts in power, or a complete transfer in political ideology. From the late 1880’s through the 1920’s there was an exponential jump in the economic growth of Latin America. This spike was the result of the harvesting of Latin America 's immense agricultural resources that were exported to many nations. Latin America 's massive development of economic trade precisely compelled a liberal ideology among the nation and lead to internal conflict, power shift in social classes, and political reformation.

One way to reduce inequality among countries is financing economic development in low and middle-income countries previously referred to as developing countries. Financing economic development in developing countries has always been of interest to me. Ending extreme poverty in countries by 2030 is a major goal of the World Bank and the United Nations. Ending poverty involves raising income and facilitating inclusive growth. Low and lower-middle income countries require foreign finance to bridge the gap between domestic savings and the fund required to finance development. Reallocating savings from countries with excess savings to countries with deficit savings is a way to provide foreign finance to low income countries. Reallocation of