So before we go on our second discussion,
alam ko napagdaanan niyo na ang subject na
ito nung first semester right? at lahat tayo
nagkaroon na ng idea about dito. So Let us
refresh your knowledge, allow me to ask you all
“what is economics and why do we have to
study it?”
Feel free to answer.
So tama yun, economics is a study of society.
It enables us to think systhematically about the
problems na maaring mabuo sa ating future
business and wealth as time goes on.
Diba through economics, tinuturo’t
pinapaintindi sa atin yung mga bagay bagay
such as understanding public policy, mga
economic functions, predicting or forecasting
economic trends, etc. that goes in our world
and isa din sa tinuturo ng economics is how
these things can be used as a practical tool for
decision making.
So let’s start on our topic, ECONOMIC
DEVELOPMENT
Economic development generally refers to
the sustained concerted actions of
policymakers and communities that promote
the standard of living and economic health
of a specific area. (Read sa PDF)
So ano bang ibig sabihin nito? Pasimplehin
lang natin
When we say economic development, ito yung
process kung saan ang mga countries na may
low living standards become nations with high
living standards. Kumbaga mga countries na
umunlad, nag innovate and naging advance.
And there are Two different approaches to
economic development that have existed side
by side.
These are economic factors and non economic
factors.
So unahin muna natin ang Economic factors.
Sobrang importante niya in shaping both the
overall economy and individual businesses.
Dito kasi nakapaloob ang MACRO and
MICRO ECONOMICS. So anong pinagkaiba
niyang dalwa?
When we say Macro economics, These affect
the entire economy. Some examples are Labor
Supply and Demand, Government Policies and
Laws, and Recessions.
When we say Recession, ito yung mga
Economic downturns na nakakaaffect sa
overall demand and business performance. For
example, two consequtive quarter nang
negative ang GDP ng isang country, recession
nayun.
On the other hand, kapag sinabi naman nating
Micro Economics, ito yung directly
nakakaaffect sa individual companies or
business. Dito nakapaloob yung Interest Rates,
Tax Rates, Exchange Rates and inflation.
So kung pagsusumahin natin, sa tingin niyo,
why do we need to understand Economic
factors? Bakit kailangan siyang pag aralan ng
mga companies and taong may mga
nagbabalak tumayo ng kanilang businesses?
In order to what?
In order to help them in decision makings
regarding investments and employment,
maadapt to changing conditions na nangyayare
sa environment, and plan for the future.
Now the last one po is the Non-economic
factors. Ito yung mga walang direct effect
upon the economy of the country such as
culture, religion, tradition and more.
In the theory of economic development two
main approaches to the concept of
economic development are one is called
traditional approach and two is called growing
economy approach.
So hindi ko na po ito masiyadong ieellaborate,
kayo na lang po bahala magbasa since theory
lang naman yan and hindi naman managerial
ang masiyadong kailangan pagfocusan sa
quali.
Economic Growth vs Economic Development -
tandaan natin na ang dalwang ito ay connected
but not identical. Hindi sila magkapareho.
So for example, sa relationship. Maraming sabi
sabi na babae daw yung palaging tama, agree
ba kayo dun? (mag ask sa mga audiences –
CONNECTION)
So kidding aside, sa relationship, paano ka
magkakaroon ng development kung wala kang
growth at paano ka magkakaroon ng growth
kung sa sarili mo, hindi ka magdedevelop.
So in connection with our topic, ang pinaka
major goal talaga ng mga poor countries is
economic development or economic growth.
Difference between these two is that - Growth
may be necessary but not sufficient for
development. Ito kasi yung pag-increase ng
production or income per capita ng isang
bansa.
Paano ba minemeasure ang Production?
Syempre by using gross national product
(GNP) or gross national income (GNI), can
be used interchangeably.
On the other hand, Economic development
refers to changes in income, savings and
investment ng isang bansa.
And also, kapag sinabi nating “Growth”
minemeasure siya by using quantitative
approach in a short run process While ang
development, minemeasure siya using both
qualitative approach in a long run process.
So tandan natin yun.
Features of Economic Development
The features of economic development are as
follows:
 Literacy rate
 Infrastructure
 Internet access
 Academic Level
 Agriculture shifting industry then service
sector
 Access to good quality housing
 Standard of living
 Access to good quality healthcare
Defining the Developing World
The most common way to define the
developing world is by per capita income.
Ang formula niya is Total Income/Total
population.
GNP – 7,227,312
Population – 89
Per capita income?
Classifications and Per Capita GNI
 Low-income countries - $1,025 and less
 Lower-middle income countries - $1,026 to
$4,035
 Upper-middle income countries
- $4,036 to $12,475
High-income countries - $12,476 and more
Syempre nakadollar yan, mumultiply niyo pa
yan sa Philippine rate depende sa ibibigay ng
problem.
Underdevelopment
 Takes place when resources are not used
to their full socio-economic potential
 It co-exist with
unutilized and underutilized manpower
Unexploited natural resources
Underdeveloped economies countries which
show the tendency of high growth rate are
called developing economy.
Indicators of Development
To determine if a country is improving in terms
of its economic activities and if it’s showing
signs of economic growth, one of the
measurement commonly used is GDP and
GNP.
So ginagamit ito in order to indicates the state
or level kung gaano ba kaunlad ang isang
bansa.
As I said earlier, these includes
1. GNP (Gross national Product) – which is
yung diniscuss ko kanina
2. Life expectancy na madidiscuss din po
mamaya
3. Birth and death rates
though these numbers do not give a full
picture of a nation’s situation. But birth
and death rates po can be used as an
overall measure ng state of healthcare
and education ng isang bansa.
4. (gross domestic Product). This is based
on how much money a country makes
from its products over the course of a
year. Kumbaga pangkalahatang income
ng tao sa isang bansa.
Gross domestic product growth rate =
GDP yr2 – GDP yr 1 x 100
GDP yr1
Year 1 - 6,032,835
Year 2 - 6,648,244
Growth rate?
I’m fully aware na may mga idea na kayo about
jan, right? And also nakapaloob din pala dito
ang HDI or Human Development Index which
will be discussed by our next presentor.