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Introduction To Economic Development Lecture Notes

This document introduces economic development and its core objectives and values. It discusses that economic development focuses on raising countries from low income levels to higher standards of living. The three core values of development are sustenance, self-esteem, and freedom. The three objectives of development are to increase the availability of basic goods, raise living standards and incomes, and expand economic and social choices available. When comparing economies' development levels, it is important to consider factors like GDP as well as human development indicators and to use either exchange rates or purchasing power parity exchange rates.

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477 views2 pages

Introduction To Economic Development Lecture Notes

This document introduces economic development and its core objectives and values. It discusses that economic development focuses on raising countries from low income levels to higher standards of living. The three core values of development are sustenance, self-esteem, and freedom. The three objectives of development are to increase the availability of basic goods, raise living standards and incomes, and expand economic and social choices available. When comparing economies' development levels, it is important to consider factors like GDP as well as human development indicators and to use either exchange rates or purchasing power parity exchange rates.

Uploaded by

Vermatex PH
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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INTRODUCTION TO ECONOMIC DEVELOPMENT1

 Economic development is a special field of economics which concentrates

on the study of countries which are in the process of moving upward from

low levels of income, and social progress. There are many features of an

economy that are relevant for measuring its level of national well-being,

including the annual production of goods and services (GDP/GNP/GNI)

and social indicators, such as life expectancy, educational attainment, and

environmental quality.

 Three Core Values of Development

1. Sustenance- the basic goods and services, such as food, clothing and

shelter that are necessary to sustain an average human being at the

bare minimum level of living.

2. Self-esteem- the feeling of worthiness that a society enjoys when its

social, political, and economic systems and institutions promote human

values such as respect, dignity, integrity and self-determination.

3. Freedom- A situation in which society has its disposal a variety of

alternatives from which to satisfy its wants and individuals enjoy real

choices according to their preferences.

 The three Objectives of Development

1. To increase the availability and widen the distribution of basic life-

sustaining goods such as food, shelter, health and protection.

1
Economic Development in Asia By Dowling and Valenzuela
2. To raise of living, including, in addition to higher incomes, the provision

of more jobs, better education and greater attention to cultural and

human values, all of which will serve not only to enhance material well-

being but also to generate individual and national self-esteem.

3. To expand the range of economic and social choices available to

individuals and nations by freeing them from servitude and

dependence, not only in relation to other people and nation-states, but

also to the forces of ignorance and human misery.

 To compare and contrast the level of economic development in different

economies, it is useful to consider all these factors. In particular, it is

important to recognize that there are two popular ways to compare levels

of income: the exchange rate and purchasing power parity methods.

 The exchange rate method has the advantage of simplicity and ease of

calculation. The PPP method, while more costly to calculate and maintain

over time, is a better measure of relative living standards since it is

unaffected by exchange rate fluctuations and includes all goods produced

rather than traded goods only.2

2
Economic Development in Asia By Dowling and Valenzuela

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