economic Essay

Economic Development: Growth is associated with structural, social change and change in the important institutions of the economy.

2) Afghanistan and Japan differ greatly in terms of the Human Development Indicator (HDI) which include the GDP and GNI per capita, infant mortality rate, literacy rate and life expectancy. The GDP (Gross Domestic Product) or GNI (Gross National Income) per capita, which are both indicators of a nation’s level of wealth, are determined by dividing the GDP or GNI by the total population of the country. Japan has a GPD per capita of $34,870 whereas Afghanistan has a GDP per capita of only $2,000. Here, Japan, having a much higher GDP per capita is considered a rich developed country and Afghanistan, with a much lower GDP per capita, is considered a poor developing country. Another HDI that determines the wealth level of the country is the infant mortality rate.

Economic growth, put simply, is “an increase in the amount of goods and services produced per head of the population over a period of time”; development is inextricably linked with this economic growth. By utilising theories of economic growth and development we can see how the Chinese and Sub-Saharan African economies have emerged, but, more notably, we can use these to look at patterns from past and present to show their experience and the implications of this growth for the future.

♣Economic growth: The increase over time in the capacity of an economy to produce goods and services and (ideally) to improve the well-being of its citizens.

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.

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.

Economic growth can have several meanings. Numerous economic books define economic growth as an increase in production and consumption of goods over certain period of time. Economic growth can also mean an increase in living standard of people in the given area. From another perspective it can also be said economic growth leads to betterment of living standards. Economic growth is measured through observing the change in Gross Domestic Product of a country’s economy. GDP is assumed to be the most accurate indicator of Economic change in a given country. But the result don’t always reflect the accurate economic condition of the

John Hawksworth “Opinion: Economic Trends - Saved by the consumer?”, Accountancy, London, Mar 2002 (with minor editing)

According to Pop, Res, Dev p 6-11 of the United Nations development is defined as the "Improvement in human welfare, quality of life, social well being. Satisfying the population's needs and wants. Measured using a range of socio-economic indicators".The socio-economic indicator of the measure of development of my choosing is Gross Domestic product (GDP). As "GNP per capita is the most used indicator of development'"(Harpercollege.edu, 2017).

Economic growth refers to the rate of increase in the total production of goods and services within an economy. Economic growth increases the productivity capacity of an economy, thereby allowing more wants to be satisfied. A growing economy increases employment opportunities, stimulates business enterprise and innovation. A sustained economic growth is fundamental to any nation wishing to raise its standard of living and provide a greater well being for all. Gross domestic product (GDP) is the monetary value of all final goods and services produced over a year. It is the total value of production within the economy. The total value of production is the total value of the final goods or services less the cost of

‘Enough is Enough’ (Dietz and O’Neill, 2013) arose from the first Steady State Economy Conference, 2010, and includes a series of proposals to achieve a steady-state economy. One proposal is to substitute Gross Domestic Product (GDP), our current indicator of economic growth, for a more suitable measure that reflects progress in terms of environmental and social sustainability. The Happy Planet Index (HPI) is suggested as a potential alternative because it demonstrates how effective a nation is at making its people happy whilst managing environmental resources (Dietz and

Gross Domestic Product (GDP) is an inadequate measure of societal well-being and should be replaced by the Human Development Index (HDI)

Economic development is defined as sustainable increase in living standards. It entails increased per capita income, better education and health as well as environmental protection.

Due to the fact that focuses on only three aspects of development, it does not give a complete picture of the level of development. More aspects of development could increase the value of the HDI as a measure of development, however it could be argued that adding more and more indicators reduces the value of a composite indicator of development As each subsequent indicator becomes less significant in its overall measure. Moreover, the HDI brings equal weighting to those three indicators. There is no economic or social justification supports the three indicators being given equal weight. Overall however it must not be taken too literally or in isolation from other indicators of human well-being. Other indexes Also in development and include ‘The Happy Planet Index’ which places significant importance on resource sustainability and environmental degradation management, as well as the overall welfare of the general population. For example the feeling of “stress” of the population this felt to be very important and works out the average working week and average leisure time per capita. This is perhaps a very important measure is in terms of productivity and workforce which has a high GDP but much leisure time could be said to have greater productive efficiency. International trade is one of the ways in which countries globally can increase their populations welfare and lead ultimately to increased development. Trade is defined as the

Detailed analysis of HDI calculation and components involved in the calculation of HDI are presented in the report.