04/02/2019

Economic Development

Economics, • Development = Growth plus Change

Institutions, and
Development: • Growth: sustained improvement in the
A Global level of per capita income
Perspective
• Change: sustained improvement in
institutions and organizations that support
growth

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Growth Institutions
• Gross Domestic Product (GDP): Market value of • Family: respect the authority & share
all final goods and services an economy produces resources
in one year

• Real GDP: GDP in constant prices • Culture: propensity to save & invest
• GDP Per Capita = (Real GDP / Population) or • Religion: ability to bring about change
income per person

• Economic Growth = percentage change in Real

• Law: protect property rights and civil liberties
GDP per capita and enforce contracts

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Organizations Happiness and Development

• Government: produce public goods and • There is not a perfect correlation between
regulate economic activities happiness and per capita income: people
• Education: increase productivity and expand the could be poor, but happy; rich, but and
range of economic and social opportunities unhappy
• Health: enable proactive participation in economic and
social activities • Once per capita income increases above
$10,000 to $20,000, the percentage of
• Business: provide incentive for profit making, people who say they are happy tends to
resulting in growth and expansion
increase
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Happiness and Development Income and Happiness Across Countries

Factors affecting happiness:

• Family relationships
• Financial conditions
• Work satisfaction
• Community and friends
• Health and health-care services
• Personal freedom
• Personal values
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Three Core Values of Development Objectives of Development

• Sustenance: The ability to meet basic human • To increase the availability and
needs including shelter, food, health,
education, safety distribution of basic human necessities

• Self-Esteem: To be a person with a sense of • To improve the standard of living for

self-respect and self-worth. To live with dignity,
respect, and honor
the majority of the people

• Freedom from Servitude: To be able to • To expand the range of economic and

choose the path to prosperity and have the social choices and opportunities
opportunity to improve

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Millennium Development: Millennium Development

Goals and Targets for 2015 Goals and Targets for 2015

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Economic Development

• Inclusion of non-economic variables in

designing development strategies

• Achieving the Millennium Development

Goals

• “…One future-or none at all”

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