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    Economic Development Lesson 1

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    Stanley Aquino
    This document discusses the key concepts of economic development including the basic economic problems faced by all nations, how goods are produced and distributed based on different economic systems, and the meaning and classifications of economic development and growth. The three basic economic problems are what to produce, how to produce, and for whom to produce. Countries are classified as highly developed, intermediate/developing, or underdeveloped based on their gross national product. While growth can be measured, development involves both economic and non-economic changes that improve human conditions.

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    Economic Development Lesson 1

    Uploaded by

    Stanley Aquino
    177 views18 pages
    This document discusses the key concepts of economic development including the basic economic problems faced by all nations, how goods are produced and distributed based on different economic systems, and the meaning and classifications of economic development and growth. The three basic economic problems are what to produce, how to produce, and for whom to produce. Countries are classified as highly developed, intermediate/developing, or underdeveloped based on their gross national product. While growth can be measured, development involves both economic and non-economic changes that improve human conditions.

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    The Concept of Economic Development

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    This document discusses the key concepts of economic development including the basic economic problems faced by all nations, how goods are produced and distributed based on different economic systems, and the meaning and classifications of economic development and growth. The three basic economic problems are what to produce, how to produce, and for whom to produce. Countries are classified as highly developed, intermediate/developing, or underdeveloped based on their gross national product. While growth can be measured, development involves both economic and non-economic changes that improve human conditions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    177 views18 pages

    Economic Development Lesson 1

    Uploaded by

    Stanley Aquino
    This document discusses the key concepts of economic development including the basic economic problems faced by all nations, how goods are produced and distributed based on different economic systems, and the meaning and classifications of economic development and growth. The three basic economic problems are what to produce, how to produce, and for whom to produce. Countries are classified as highly developed, intermediate/developing, or underdeveloped based on their gross national product. While growth can be measured, development involves both economic and non-economic changes that improve human conditions.

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    REAL CONCEPT OF

    DEVELOPMENT
    LESSON 1 | ECONOMIC DEVELOPMENT
    “A better quality of life has been the objective
    of societies and nations.”
    Basic Economic Problems
    - Every nation, rich or poor, has economic problems.

    - There are more serious and widespread in poor countries.

    - Economic problems exist because:


    ◦ (1) Resources are limited; (2) Human wants are unlimited.
    Basic Economic Problems
    - Three Basic Economic Problems:
    1. What goods to produce and in what quantities?
    2. How to produce the goods?
    3. For whom the goods are produced?
    What goods are to be produced?
    - It is not really possible to produce all the goods that
    people want for their satisfaction.

    - a system of priority has to be established.

    - Basic needs or people are given top priority.


    What goods are to be produced?
    CAPITALISM
    - Goods which command the highest price and profit.

    COMMUNISM
    - for service and not for profit, goods produced according to
    the needs of the people.
    What goods are to be produced?
    SOCIALISM
    - combination of capitalism and socialism. Production of
    goods is based on needs and profits.
    How are the goods produced?
    - The ideal situation is to produce the goods with the most
    efficient method.

    - This involves machines, technology, management, and


    skills.

    - Many developing countries are deficient on these.


    For whom are the goods produced?
    - The distribution of goods is determined by the economic
    system:

    1. CAPITALISM
    - Allocated in the market.
    For whom are the goods produced?
    2. COMMUNISM
    - goods are distributed according to the needs of the
    people. It is a classless society. There is equality.
    For whom are the goods produced?
    3. SOCIALISM
    - both the market and the state determine the distribution
    of goods.
    - Essential and strategic goods are being allocated by the
    government at cost.
    - Goods that are given to the private sector are sold for
    profit.
    The Meaning of Economic
    Development
    - It is a progressive process of improving human conditions,
    such as the reduction or elimination of poverty,
    unemployment, illiteracy, inequality, disease and
    exploitations.
    The Meaning of Economic
    Development
    - involves both economic factors (capital, technology, and
    market) and non-economic factors (culture, religion,
    government, education)
    Classifications of Countries
    - The economy of a country is measured by its Gross
    National Product (GNP).

    - The basis of comparison is the economy of highly


    developed countries.
    Classifications of Countries
    Highly Developed Countries (USA, Canada, Japan, Australia)

    Intermediate/Developing Countries (Argentina, Spain,


    Poland, Saudi Arabia)

    Underdeveloped/Less developed Countries (India,


    Philippines, Vietnam, Kenya)
    Development and Growth
    - Development is a progressive and dynamic process.
    - Growth is the result of a process.
    - Therefore: growth is the product of development.
    Development and Growth
    - Economic growth is visible and measurable.

    Examples: roads, vehicles, houses, buildings, hospitals,


    banks, schools, etc.
    Development and Growth
    - Development means more than imposing buildings,
    beautiful houses, elegant cars, money or modern machines.

    - It includes fundamental changes in society, ways of life,


    values and institutions.

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