Scribd Logo
Upload

Welcome to Scribd!

    • 33 views

    Development Economics BA-4706: Dr. Muhammad Aqil

    Uploaded by

    alicia john
    The document discusses key concepts in development economics such as GDP, GNP, national income, and theories of economic development. It compares traditional views of development focused on economic growth versus more modern human-centered approaches. Sustainable development goals to improve quality of life through reducing poverty, improving health and education, and protecting the environment are also outlined.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Development Economics BA-4706: Dr. Muhammad Aqil

    Uploaded by

    alicia john
    33 views32 pages
    The document discusses key concepts in development economics such as GDP, GNP, national income, and theories of economic development. It compares traditional views of development focused on economic growth versus more modern human-centered approaches. Sustainable development goals to improve quality of life through reducing poverty, improving health and education, and protecting the environment are also outlined.

    Original Title

    Development Economics Lecture 1

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses key concepts in development economics such as GDP, GNP, national income, and theories of economic development. It compares traditional views of development focused on economic growth versus more modern human-centered approaches. Sustainable development goals to improve quality of life through reducing poverty, improving health and education, and protecting the environment are also outlined.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    33 views32 pages

    Development Economics BA-4706: Dr. Muhammad Aqil

    Uploaded by

    alicia john
    The document discusses key concepts in development economics such as GDP, GNP, national income, and theories of economic development. It compares traditional views of development focused on economic growth versus more modern human-centered approaches. Sustainable development goals to improve quality of life through reducing poverty, improving health and education, and protecting the environment are also outlined.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 32

    Development Economics

    BA-4706

    BBA 5
    Lecture # 1
    Dr. Muhammad Aqil
    Marks Distribution

    Total Total Marks Total Marks


    Marks Head
    Frequency Exempted /Frequency /Head

    Quiz 4 1 5 15

    Final Paper 1 0 40 40

    Mid Term Paper 1 0 20 20

    Presentation 1 0 10 10

    Case Study 4 1 5 15

      Total Marks 100


    Basic Concepts

     Branches of Economics
     Micro Economics
     Macro Economics
     Managerial Economics
     Business Economics
     Political Economy
     Labor Economics
     Public Finance
     Monetary Economics
     Development Economics
    Basic Concepts

     GDP
     GNP
     NNP = GNP – Depreciation
     National Income = NY= NNP
     NY = C+I+G+Xn
     Per Capita Income = NY/ Population
     Real Per Capita = Nominal PCI – Inflation effect
     Savings
     Investment
     Consumption
    New Concepts

     Unemployment
     Underemployment
     Poverty
     Economic Growth
     Economic Development
     Human Development Index
     Theories of Development
    Division of World
     Rich Countries
     Poor Countries
     Developed, Developing and Under Developed Countries
     What is the difference?
     Why is this difference?
     How can the difference be removed?
     The Answer is Socialism?
     The answer is Capitalism?
     The answer is mixed economy?
     The answer is still awaited?
    What is the difference
     The richest 1% own 45% of world wealth
     836 million people living in extreme poverty i.e. less
    than $1 (UN)
     1/5th of the world population below $1.25
     22,000 children die each day due to poverty
     805 million people worldwide do not have enough
    food to eat.
     More than 750 million people lack adequate access
    to clean drinking water.
     80% of the world population lives on less than $10 a day.
    Why to Study Economic Development

     What is Growth and Development?


     Why Development is necessary?
     What mistakes were made by Past economists to
    attain economic development?
     Are non-economic factors significant to economic
    development?
     What if there is no economic development?
     What are the determinants of Eco Development?
     How can economic development be achieved
    today?
    What is Economic Development

     https://
    www.youtube.com/watch?v=ovSJQ4GZeHE
    Why Development is necessary?

     For Producers
     Maximization of Profit
     For Consumers
     Maximization of Satisfaction
     Standard of Living
     For Government
     Eradication of Poverty
     Decrease in Crime Rate and Violence
     Better Defense
     Infrastructure
     Health
     Education
     High Per Capita Income
    Numerical

     In 2016, A Country produced the total goods for Rs 60


    billion and services worth Rs. 40 billion. The total
    expenditures by consumers amounted to Rs. 39 b. The
    producers made capital expenditures of Rs. 23 b and
    government spent 25% of NI. Import for the year was
    Rs. 9 b and export Rs.11 billion.
     Calculate:
     National Income
     Real National Income if Inflation Rate is 15% P.A.

    Y=C+I+G+Xn
    Traditional View of Economic
    Development 1950s
     Eco Development = Eco Growth
     Eco Growth = Rise in GDP / GNP (5% or more)
     Rise in GDP / GNP = Rise in Income
     Problems
     Industrialization at the cost of Agriculture
     Issues of Concentration of Wealth
     Poverty
     Unemployment
    Limitations of Traditional Measures

    In 1970s, the definition was criticized on the


    following grounds
     It did not address poverty of the masses
     It did not take into account income disparity
     It did not focus on unemployment reduction
     The Growth Rate Dilemma might be
    misleading
     The countries with rapid growth also failed
    View of Economic Development in
    1970s
     Slogan was “Redistribution from Growth”
    Economic Variables
     Elimination of Poverty
     Reduction in Unemployment
     Reduction in Income Inequality
    Non-Economic Variables
    Summary of Traditional View of
    Development
     Focus is on National Income
     Poverty means the person who is deprived of
    certain level of income
     Development means increasing the level of
    income By
     Increasing GDP
     Reducing Income Inequality
     Reducing Unemployment
    Problems with Traditional View

     Amerta Sen and Dr. Mehboobul Haq


     Income is important thing but not everything
     Income without health is not development
     Income without education is not
    development
     Income without social freedom is not
    significant
     The Centre of Development is NOT INCOME
    BUT HUMAN
    Sen’s “Capabilities” Approach: 1985

     GDP standard is not the only good measure


    of welfare or development
     Happiness standard (measured by Gross
    Happiness Index ) is also subjective to
    measure
     Basic Needs Approach is also difficult to
    identify as to what basic needs of people are
    and what are not
    Sen’s “Capabilities” Approach: 1985

     Capability Approach has two dimensions


     Do People have capability to live their own life that
    make them happy?
     Do People have functioning (Freedom) to live their own
    life that make them happy?
     For example a book is irrelevant to an illiterate person
    or A TV set is meaningless to a blind as they do not have
    capability to use them
     A wife in a joint family system may not enjoy many
    facilities due to lack of freedom
     A sick person can not enjoy regular food
    Explanation

     So, if we measure the well-being of people by


    means of availability goods and services, that
    may be misleading
     Therefore to conditions are necessary to get
    benefit from goods i.e. Capability and
    Functioning
     Hence: Freedom of Choice or control of one’e
    own life is a central aspect of wellbeing
    Capability approach

     Broad evaluative framework


     Focus on what individuals are able to be and do
     Functioning = actual activity or state of being
    eg being healthy
     Functioning vector = combination of functioning at
    any one time
    eg caring for elderly parent AND being healthy
     Capability set = set of alternative functioning vectors
    available to an individual
    eg (caring for elderly parent AND being healthy) OR
    (receiving care services AND being healthy AND being in
    paid work)
    Definition of Development in 1990s

    1. The challenge of Development is to improve


    the quality of life (World Bank Report 1991)
    2. The improved QOL involves higher incomes,
    better education, higher standards of health
    and nutrition, less poverty, a cleaner
    environment, more equality of opportunities,
    greater individual freedom, and a richer
    cultural life.
     Economic factors
     capital
     Labor
     Natural resources
     technology
     established markets (labour, financial, goods)
     Non-economic factors (institutional, social,
    values)
     attitudes toward life and work
     public and private structures
     cultural traditions
     systems of land tenure, property rights
     integrity of government agencies

    27
    Final Definition

    1. Development must be conceived of as a


    multidimensional process involving major
    changes in social structures, popular attitudes
    and national institutions as well as the
    acceleration of economic growth, the reduction
    of inequality, and the eradication of poverty
    (Todaro and Smith)
    2. Development is both a physical reality and a
    state of mind for attaining a better life.
    Economic Development and SDGs

     In 2015, 195 nations agreed with the United Nation


    that they can change the world for the better.
     This will be accomplished by bringing together
    their respective governments, businesses, media,
    institutions of higher education, and local NGOs to
    improve the lives of the people in their country by
    the year 2030.
    Economic Development and SDGs

     Eliminate Poverty
     Erase Hunger
     Establish Good Health and Well-Being
     Provide Quality Education
     Enforce Gender Equality
     Improve Clean Water and Sanitation
     Grow Affordable and Clean Energy
     Create Decent Work and Economic Growth
    Economic Development and SDGs

     Increase Industry, Innovation, and Infrastructure


     Reduce Inequality
     Mobilize Sustainable Cities and Communities
     Influence Responsible Consumption and Production
     Organize Climate Action
     Develop Life Below Water
     Advance Life On Land
     Guarantee Peace, Justice, and Strong Institutions
     Build Partnerships for the Goals

    You might also like