Introducing economic

development: a global
perspective

Prepared by: Monneca M. Marquez

BSEd 3- Social Studies
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Economic Development: A Global

Perspective
Economic Development

• is a process of targeted activities and

programs that work to improve the
economic wellbeing and quality of life of a
community by building local wealth,
diversifying the economy, creating and
retaining jobs, and building the local tax
base.
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• Economic development is a
process through which the overall
education, well-being, health,
income and living standards of the
general population improves.
• This is where the economy will
gradually grow, change and become
advanced.
• In other words, a nation achieves
economic development when
emerging economies become
advance economies and you can see
a gradual shift from agriculture to
industry to services that will result
in economic growth.
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• Economic development is the

priority of local, state and federal
government as it will lead towards an
upgrading in innovation and new ideas,
higher literacy rates, creation of jobs,
improved environment, creation of
higher wealth, labor support and better
quality of life.
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Example of Economic Development

Improved productivity

Higher literacy rates

Better public education

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Global Perspectives

• A global perspective is seeing and understanding how any situation impacts

or relates to people around the world.

• A global perspective is a comprehensive lens through which you see the world
around you.

• A global perspective is a view on an issue that either has global influence or

takes into account the nature of the issue globally.
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Pre 1992 vs Post 1992

Pre 1992:
• Large gap between rich and poor nations
• Global economic convergence between emerging and developed countries

Post 1992:
• Economic Growth in Africa• Better global health (less child mortality)
• Poverty has fallen
• Extreme poverty fell from 40 % to 20% of global population
• China poverty went 743m in 1992 to 157m in 2009
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ABSOLUTE POVERTY

• The term absolute poverty is a situation of being unable

to meet the minimum levels of income, food, clothing,
healthcare, shelter, and other essential.
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• Absolute poverty refers to a condition where a person does not have the
minimum amount of income needed to meet the minimum requirements for
one or more basic living needs over an extended period of time.
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This includes things like:

• Food • Sanitation • Information

facilities
• Shelter • Education
• Safe drinking • Access to
water • Health services
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How the Other Half Live:

"Life in the area is so precarious that the youth and every able person have to
migrate to the town or join the army at the war front in order to escape the
hazards of hunger escalating over here".
-Participant in a discussion group in rural Ethiopia

" For a poor person everything is terrible - illness, humiliation, afraid of

everything; we depend on everyone. No need us. We are like garbage that
everyoneshame. We are cripple; we are wants to get rid of".
-A blind woman from Tiraspol, Moldova
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"When one is poor, she has no say in public, she feels inferior. She has
no food, so there is famine in her house, no clothing and no progress in
her family“
-A poor woman in Uganda

"When food was in abundance, relatives used to share it. These days of
hunger, however not even relatives would help you by giving you some
food".
-Young man in Nichimishi, Zambia
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"We have to line up for hours before it is our turn to draw water".
-Mbwadzulu Village (Mangochi), Malawi

"Don't ask me what poverty is because you have met it outside. Look at the
house and count the number of holes. Look at the utensils and the clothes I am
wearing. Look at everything and write what you see. What you see is
poverty".
-Poor man in Kenya
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Causes of Absolute Poverty

Causes of poverty can vary greatly and are often based on
geographical location. The following situations can be a cause for a family
or an individual to fall into poverty.

• Availability of Resources - One of the primary causes of absolute

poverty is the lack of resources needed to physically meet the needs of
an individual or family.

• Mental Health - Mental health is a major cause of poverty and is

especially evident in more developed countries
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• War - Conflicts on small and large scales are a major contributor to

poverty around the world.

• Lack of Employment Opportunities - Countries and regions where jobs

are scarce can be a cause of poverty

• Lack of Education - Lack of education is part of a cycle of poverty.

• Climate Change - The rapid changing of the world's climate is one of

the newest causes of poverty in the world.

• No Infrastructure - The lack of infrastructure can be a contributing

factor to people finding themselves in poverty.
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DEVELOPMEN
T
Meaning of Development

• The act or process of growing

or causing something to grow
or become larger or more
advanced, or creating
something over a period of
time.
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In Layman’s terms:

• Development is closely associated with progress.

• It is equated with economic sufficiency, synonymous to economic

growth.

• GNP, per capita income were convenient indicators of development

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In economic terms:

• Development is the accumulation of human capital and its effective investment in

the development of an economy.
• Economist tend to equate development with economic growth
• Development is an overall process dependent upon the outcome of man's efforts to
deal with his environments.
• It is the total process which includes economic, political, social and cultural
aspects
• Politically, it is a process which prepares people for participation in political
affairs, especially as citizens of democratic country.
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Typologies of Development

Underdeveloped Societies

• It has subsistence economies where people

live a hand-to-mouth existence and produce
their own needs for food, clothing and shelter.

• Law level of technology that result to low

levels of productivity.
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Main Human Activities

• People from these societies were once called natives, primitives, savages and
were target of traders who needed exotic goods for maximum exploitation of
indigenous natural and human resources and of missionaries who worried
about their souls

• They belong to bands, tribes of chiefdoms and usually their society is

classless and said to be egalitarian.
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Developing Society

• Developing societies are in transition and in flux of change

• They are politically independent but still suffer relapses as result from centuries of
colonization and foreign domination, hence the search for identity and pride in their
cultural heritage.

These types of societies are found in:

• AFRICA
• ASIA
• LATIN AMERICA
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Developed Societies

• Industrialization, modernization, automation, cultural pluralism, rapid social

change, and high standard of living characterize the developed societies.

• They are progressive, powerful, and technologically advanced because of

capital formation, savings, and technological progress.
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Economic characteristics:

• Private ownership of all factors of production backed up by laws.

• Free enterprise and competition.

• Widespread commercial production for sale and maximum profits for

the producers and satisfaction for the consumers.
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The Three Worlds

1. The First World

• The United States and its allies in western Europe and its satellites in Latin
America, Canada, Australia, New Zealand and Japan make up the first world.

• They are rich and highly developed countries

• The capitalist system dominates the economy

• They have become colonialist and capitalist and have established overseas
bases from which to draw raw materials or to develop potential markets for the
purchase of their finished products.
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2. The Second World

• The Soviet Union including its allies and satellites in Eastern Europe and
parts of Asia dominates the second world.

• Like the first world, most of these countries have a high pace in industrial
growth and are highly urbanized.

• Their economy is the socialist system based on state ownership off the
factors of production.
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3. The Third World

• The developing countries which are non aligned found in Africa, Asia,
Latin America and the Caribbean make up the third world.

• These nations are not linked with the North Atlantic Treaty Organization or
the Warsaw Pact.

• They consider themselves socially and culturally developed, economically

and technically underdeveloped.
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North and South

• Lately, the nations of the world have been polarized into northern and southern
hemispheres.

• The North is made up of all the developed, advanced, industrial countries

• The South refers to the developing countries with its variants of the middle
developing countries and the least developed.

• Income disparities between the North and the South are evident, and these will
widen because economic power and control of international trade are held by the
developed countries of the North.
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The Newly Industrialized Countries

• More recently, there are newly industrialized countries in Asia with

industrial economies, having achieved an economy to full industrialization.

• Their export products can compete with those of the western world of then
first world countries.
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Factors Influencing Development

1. Environment- the environment consist of the things around, beneath, and

above us.

There are three types of environment, namely physical, social, and cultural.

The Physical Environment

• The various elements of the physical environment such as geographical
condition and location, topography of the soil, climate, landforms, and bodies
of water have a strong influence on the development of a nation.
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Sociocultural Environment

• Most environmental influences on development result from an interaction

between social and cultural forces.

• Social environment refers to the various groups and social interaction going
on within a given population.

• Cultural environment refers to the learned ways of living and norms.

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2. Population

• Population refers to the number of people living in a given area.

Knowledge about population size, distribution, composition and
change may explain why a country is underdeveloped.
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3. Ideas

• Ideas embody man's conception of his physical, social, and cultural

world.

• Ideologies are derived from social conditions.

• An ideological position can be a dominant force in guiding national

development. Such includes complex values that are explicit and implicit,
and set of goals to be pursued to transform society.
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4. Technology

• Technology consists of material things as well as the fund of knowledge,

skills, and attitudes necessary to convert available resources to objects men
need and wants.

• It implies a systematic approach to control production through labor-

saving techniques and sophisticated communication and transportation
operations.

5. Events

• Events refer to random, unpredictable happenings that affect the course of

social change.
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How to Determine Development

You can determine the development of a country using the following:

1. Gross Domestic Product.

2. Life Expectancy
3. Literacy Rate
4. Education
5. Healthcare System
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WHAT IS DEVELOPING
COUNTRIES?
• Developing countries have economies with a low GDP per person and rely
on agriculture as their main industry.

• The developing countries generally lack a high degree of industrialization,

infrastructure and other capital investment, sophisticated technology,
widespread literacy and advanced living standard among their populations as
a whole.
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Developing Countries

• Countries of Asia, Africa, the Middle

East, Latin America, Eastern Europe,
and the former Soviet Union that are
presently characterized by low levels of
living and other development deficits.

• Literacy rate is quite low as people are

deprived of education facilities and the
standard of living in developing
countries is not normally very high.
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Characteristics of a Developing World

1. Low levels of living and productivity

2. Lower levels of human capital
3. Higher levels of Inequality and
Absolute Poverty
4. Absolute Poverty
5. Greater Social Fractionalization
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6. Larger Rural Populations but rapid to

Rural to Urban Migration

7. Lower levels of Industrialization and

Manufactured exports

8. Adverse Geography

9. Underdeveloped Financial and other

markets

10. Colonial legacy and External

dependence
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Example of a Developing Countries

• Indonesia

• Malaysia

• Mexico

• Philippines

• Thailand
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• Brazil

• China

• India

• Nigeria

• Saudi Arabia

• South Korea

• Turkey
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