•Economic development refers to the sustained,

concerted actions of communities and

policymakers that improves the standard of
living and economic health of a specific locality.
Economic Development
• Michael Todaro define economic development as an
increase in living conditions, improvement of the
citizens’ self-esteem needs and presence of a free
and just society.

• Human Development Index includes literacy rates

and life expectancy which in turn has impact on
productivity and economic development growth.
Economic Growth and Economic Development

Economic Growth Economic Development

•is the general •is a government policy
increase in the to increase the
country’s products economy, social
and services welfare and stability of
output political environment.
Stages of Economic Development according to
Gunter:

•1. The Structural Transformation

•2. The Demographic Transition
•3. Urbanization
Stages of Economic Development according to
Gunter:

•1. The Structural Transformation

• refers to a change in the composition of GDP.

• Initially, economic activities and jobs are based in the

agricultural sector. With development, the share of
agriculture in GDP decreases due to the increase and
growth of the service sector which slowly overtake the
share of industry, while the share of agriculture continues
to decrease.
Stages of Economic Development according to
Gunter:
2. The Demographic Transition

is determined by changes in the fertility rates

(example the number of children per
women) and changes in life expectancy.
Stages of Economic Development according to
Gunter:
•3. Urbanization

•The main factors leading to the process

of urbanization is the migration of
people