Dr.

Bassem Elmaghraby
Lecturer of Political Science
Suez Canal University
Certified International Trainer at ILO
• Introduction
• Inequality
• Resources & scarcity, income & redistribution,
• Economic development, Economic Growth, Fighting
Poverty,
• Economic theories (Socialism, Capitalism, Communism)
Economic blocs (EU, BRICS…etc.).
• Globalization, macroeconomic policy and public policy
• Economic crises, environmental policy,
• A broad measure of progress involving improvements in
living standards, reduction in inequality, and
enhancement of social well-being.
• Economic development is defined as a process through
which low-income national economies are transformed
into advanced and modern economies.
• Increase in a country’s production of goods and services,
measured by Gross Domestic Production (GDP) or Gross National
Income (GNI).
• The amount of increase in the production of economic goods and
services in a specific period of time compared to a previous period.

• Economic Growth deals with an increase in the level of

production, but Economic Development is related to an increase
in production along with an improvement in the social and political
well-being of the people within the country.
• The availability of infrastructure which includes; airports, roads,
services, railways and many others.
• Maintaining security and political stability in the country.
• The development and prosperity of the economy at the level of
international trade.
• The development and prosperity of the agricultural economy.
• Reduction in the level of the poverty line.
• Increase the general and individual income.
• Human Development Index (HDI): Education, life expectancy,
and income.
• Healthcare access, and employment levels.
• Providing infrastructure with high standards and quality.
• Contributing to spreading justice among all.
• Improve the health system more comprehensively.
• Maintaining respect for human rights in all aspects.
• Improving the level of the educational system.
• Raising the levels of financial markets.
• Contributing to modernizing means of transportation.
• Preserving civilization, arts and heritage and trying to highlight
and care for them.
• Providing and trying to search for sources of energy
production.
Vertical Economic Development:
• focuses on deepening specialization and improving efficiency and
productivity within specific industries or sectors. Then focus on other
sectors. 5
4
3
2
1
0
Horizontal Economic Development: Category 1 Category 2 Category 3 Category 4

• emphasizes broad-based growth across multiple industries or

sectors. It seeks to diversify the economy, reduce risks, and spread
opportunities more evenly across regions and populations.
Advantages
1. High Productivity and Efficiency: Specialized industries
become highly efficient and competitive.
2. Increased Revenue from Exports: High-value goods and
services boost foreign exchange earnings.
3. Economic Scale: Specialization often leads to economies of
scale, reducing costs.
Challenges
1. Dependency Risk: Over-reliance on a few sectors makes the
economy vulnerable to market shocks.
2. Inequality: Focused growth in specific sectors may widen the gap
between regions or social groups.
3. Limited Job Creation: Intensive specialization may not create as
many jobs across sectors.
Advantages
1. Reduce Economic Risk: Diversification minimizes dependency
on unstable markets or industries.
2. Job Creation: Generates employment opportunities across
various skill levels and regions.
3. Sustainable Growth: Promotes balance between industrial,
agricultural, and service sectors.
Challenges
1. Resource Intensity and high cost: Broad development requires
significant investment in infrastructure and policies.
2. Potential Inefficiency: Spreading resources across multiple
sectors may reduce the focus and impact.
3. Coordination Issues: Difficulties in aligning policies and efforts
across diverse sectors.
• Economic disturbances: economic disturbances or imbalances
are factors that can lead to disrupt the economic growth, such as
lack of recourses, regions imbalance...
• Public debt: The debts on the state are considered one of the
main reasons that hinder the process of achieving economic
development.
• Political instability: political disturbance and conflicts hinder any
kind of economic development.
• Environmental degradation.
• Rising income inequality.
• Growth without job creation (“jobless growth”).
• Poverty refers to the income below the poverty line (e.g., $2.15 per
day, World Bank standard).
• Poverty is more than just the lack of income, resources or a secure
livelihood. Its manifestations include hunger, malnutrition, limited
access to education and basic services, social discrimination,
exclusion from society and lack of opportunities to participate in
decision-making.
• Unemployment.
• Lack of access to education and healthcare.
• Systemic inequality and discrimination.
• Political instability and corruption.
• Pro-poor growth: Ensuring benefits of growth to reach the poor people.
• Social safety nets: Cash transfers, unemployment benefits, and
subsidies.
• Education and Skills Development: Improving access to quality
education to empower individuals economically.
• Healthcare Access: Public health programs to reduce diseases and
improve productivity.
• Microfinance and Entrepreneurship: Providing small loans to
encourage self-employment and economic activity.
• Global Cooperation: UN Sustainable Development Goal 1 is to
Eradicating poverty by 2030.
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 Dr. Bassem Elmaghraby
Lecturer of Political Science
Suez Canal University
Certified International Trainer at ILO
• Introduction
• Inequality
• Resources & scarcity, income & redistribution,
• Economic development, Economic Growth, Fighting
Poverty,
• Economic theories (Socialism, Capitalism,
Communism) Economic blocs (EU, BRICS…etc.).
• Globalization, macroeconomic policy and public policy
• Economic crises, environmental policy,
• A broad measure of progress involving improvements in
living standards, reduction in inequality, and
enhancement of social well-being.
• Economic theories (Socialism, Capitalism, Communism)
Economic blocs (EU, BRICS…etc.).
• “Capitalism is an economic and political system based on private
ownership, in this system the country’s trade and industry is
controlled by private owners for profit, rather than government.
➢ In capitalism, owners control the factors of production and
derive their income from it.
➢ Capitalism incentivizes people to maximize the amount of
money they earn through competition.
➢ Competition is the driving force of innovation as individuals
create ways to accomplish tasks more efficiently.
➢ In this system the production of goods and services is
based on supply and demand in the general market which
is known as market economy.
• In this system there is no equality the rich becomes richer and the
poor becomes poorer.
• The government usually relies on private sector.
• Modern capitalist systems usually include market oriented
economy.
• Capitalism is built on the concepts of private property, profit motive
and market competition.
• Another component of capitalism is the free operation of the
capital markets.
• Capital markets allow companies to raise funds to expand.
• Capitalism results in the best products for the best prices because
consumers will pay more for what they want the most.
• Businesses provide what customers want at the highest prices
they’ll pay, and prices are kept low by competition among
businesses.
• They make their products as efficiently as possible to maximize
profit.
• Most important for economic growth is capitalism's intrinsic reward
for innovation, including new products and more efficient production
methods.
• Capitalism doesn't provide a good chance for those who lack
competitive skills, including the elderly, children, the
developmentally disabled, and caretakers.
• To keep society functioning, capitalism requires government
policies that value the family unit.
• Capitalism does not promote equality of opportunity, inequality may
seem to be in the best interest of capitalism's winners.
• Capitalism ignores external costs, such as pollution and climate
change. This makes goods cheaper and more accessible in the
short run, but over time, it depletes natural resources, lowers the
quality of life in the affected areas.
• “Socialism is an economic system where everyone in society
equally owns the factors of production. That ownership is acquired
through a democratically elected government or through a
cooperative or a public corporation in which everyone owns shares.
• Socialists take into account both individual needs and greater
social needs.
• They allocate resources using central planning, as in a command
economy.
• Everyone in society receives a share of the production based on
how much each has contributed. This system motivates them to
work long hours if they want to receive more.
• Workers receive their share of production after a percentage has
been deducted for the common good.
• The four factors of production are labor, capital goods, natural
resources, and, in the modern era, entrepreneurship.
• Socialism is a system that shares economic output equally
throughout the population.
• It values the collective well-being of the community, rather than
individuals.
• The government distributes resources, giving it greater control over
its citizens.
• There are eight different kinds of socialism, each with their own
priorities and economic styles.
• Under socialism, workers are no longer exploited because they own
the means of production.
• Profits are spread equitably among all workers according to their
individual contributions.
• But the cooperative system also provides for those who can't work.
• It meets their basic needs for the good of the whole society. The
system eliminates poverty.
• It provides equal access to health care and education. No one is
discriminated against.
• If society needs jobs to be done that no one wants, it offers higher
compensation to make it worthwhile for people to take them.
• The biggest disadvantage of socialism is that it relies on the
cooperative nature of humans to work.
• It ignores those within society who are competitive and focus on
personal gain. Those people tend to seek ways to overthrow and
disrupt society for their own benefit.
• Socialism doesn't reward people for being entrepreneurial. It
struggles to be as innovative as a capitalistic society.
• The government has a lot of power. This works as long as it
represents the wishes of the people. But government leaders can
abuse this position and claim power for themselves.
• “Communism has a centrally planned economy, it is the economic
and political system of social organization in which all property is
owned by community and each person contributes and receives
according to their abilities and needs.”
• The state owns all land, machines, industries, buildings and
infrastructure.
• Personal property is abolished.
• In communist system a system of central planning is introduced
where the state sets production targets for all goods and services.
• Communism is based on the idea of a class struggle.
• Communism is based on equality social classes are absent in this
system.
• Abolition of property in land and application of all rents of land to
public purposes.
• A heavy progressive or graduated income tax.
• Abolition of all right of inheritance.
• Confiscation of the property of all immigrants and rebels.
• Equal liability of all to work and establishment of industrial armies.
• The gradual abolition of the distinction between town and country.
• Free education for all children in public schools and abolition of
children's factory labor.
• Centralization of credit in the hands of the state.
• The state would control communication and transportation.
• Communism has a centrally planned economy; it can quickly mobilize
economic resources on a large scale, execute massive projects, and
create industrial power.
• It can move so effectively because it overrides individual self-interest
and subjugates the welfare of the general population to achieve critical
social goals.
• It instructed the government to protect the rights of all to pursue their
idea of happiness.
• It sees income inequality as a sign of late-stage capitalism and believe
that capitalism's flaws mean it has evolved past its usefulness to society.
• The most significant disadvantage of communism stems from its
elimination of the free market.
• The laws of supply and demand don't set prices, the government does.
• They can't get up-to-date information about consumers' needs, and as a
result, there is often a surplus of one thing and shortages of others.
• To compensate, citizens create a black market to trade the things that
planners don't provide.
• People no longer feel the government can give "to each according to his
needs."
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 Dr. Bassem Elmaghraby
Lecturer of Political Science
Suez Canal University
Certified International Trainer at ILO
• Introduction
• Inequality
• Resources & scarcity, income & redistribution,
• Economic development, Economic Growth, Fighting
Poverty,
• Economic theories (Socialism, Capitalism,
Communism) Economic blocs (EU, BRICS…etc.).
• Globalization, macroeconomic policy and public policy
• Economic crises, environmental policy,
• A situation in which the economy of a country experiences
a sudden downturn brought on… an economy facing an
economic crisis will most likely experience a falling GDP
rates… raising prices due to inflation… an economic crisis
can take the form of a recession or a depression .
• It causes sharp declines in activity, leading to
unemployment, and slower growth.
• Is a period during which all the economic data and
activities of a place have a negative evolution and most of
the population suffer the consequences:
- purchasing power and consumption levels reduce.
- production reduces - companies close
- unemployment increases - banks don’t give loans
- prices and salaries reduce due to the lack of consumption
(deflation).
• The internal dynamics of market economy based on
competition and makes the companies and individuals take
risks in order to get the maximum profit; this leads to cyclical
crises when consumption reduces for any reason (credit
restriction, consumers’ mistrust or fear for the future,
saturation of the market…). Consumption reduction provokes
a sudden fall in the prices of products and companies or
banks start having problems, dismiss workers, unemployment
increase, and consumption reduces more and more. Economy
enters in a vicious circle.
All crises have the same stages:
• Downturn: economic growth reduces substantially, but
continues to be positive.
• Recession: negative economic growth for at least six months.
• Depression: this happens when recession extends for a
longer period and negative growth rates are high.
• The world economic crisis, so called the great depression 1929-
1939 was the largest and most important economic depression in
modern history and is used in the 21st century as a benchmark in
how far the world economy can fall the great depression has
shocking effect on all countries.
• The financial crisis of 2007-2009 has been the most serious
financial crisis since the great depression by leading economists….
Unemployment in the US rose to 25% and in some countries rose
as high as 33%, There is a sharp fall in export demand, Stock
markets collapse, and cities all around the world were hit hard
especially those dependent on heavy industry
➢ Food Crisis
➢ Financial crisis
➢ Oil crisis
➢ Industrial crisis
➢ Exports crisis
• Is defined as any action deliberately taken to manage human
activities with a view to prevent reduce or mitigate harmful effects
on nature and natural resources and ensuring that man-made
changes to the environment do not have harmful effects on
humans or the environment.
• Green Economy: encourage investments in renewables and
environment friendly sectors.
• Sustainable Infrastructure: reduces future environmental costs.
• Partnerships and cooperation: the integration and cooperation
policies between the private, public, international, or national actors
to promote the environmental policies, such as the SDGs.

- Sustainable development is an advancement that happens without

trading off with the necessities of group of people yet to come.
• also known as the Global Goals, were adopted by all UN Member
States in 2015 as a universal call to action to end poverty, protect
the planet and ensure that all people enjoy peace and prosperity by
2030.
• The 17 SDGs are integrated—that is, they recognize that action in
one area will affect outcomes in others, and that development must
balance social, economic and environmental sustainability.
• All 17 Goals interconnect, meaning success in one affects success
for others.
• The SDGs replace the Millennium Development Goals (MDGs),
which started a global effort in 2000 to tackle the indignity of poverty.
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