, Disclaimer
These notes were compiled using the lecture slides and Economic Development, 13th Edition Textbook.
When utilising this information for any purpose that requires referencing, the following sources are where I obtained this
information:
Todaro, M.P. & Smith, S.C. 2020. Economic development. 13th ed. Harlow, United Kingdom: Pearson.
Stofberg, K. 2024. DEC20B Slides Topic 1-11. Stadio
Please DO NOT cite or reference my notes as this is what I summarised and understood from reading, lectures and
tutorials I attended. The purpose of these notes is to assist in gaining an understanding for the module and assisting you
the way that the information assisted me in preparing for examinations.
Please do not distribute this document or try and sell it as your own work. It took many hours of hard work to compile and
format this pack and I would appreciate not seeing my notes on the groups.
Thank you for your support!
1
, Table of Contents
INTRODUCTION TO ECONOMIC DEVELOPMENT 5
INTRODUCTION 5
THE CONTEXT OF ECONOMIC DEVELOPMENT 5
ABSOLUTE POVERTY: 5
SUBSISTENCE ECONOMY: 5
ECONOMIC DEVELOPMENT - CONCEPT: 5
THE NATURE OF DEVELOPMENT ECONOMICS: 5
THE OBJECTIVES OF ECONOMIC DEVELOPMENT 6
TRADITIONAL ECONOMIC MEASURES: 6
THE NEW ECONOMIC VIEW OF DEVELOPMENT: 6
THREE CORE VALUES OF DEVELOPMENT: 6
THE THREE OBJECTIVES OF DEVELOPMENT: 6
THE MEANING OF DEVELOPMENT: AMATYA SEN’S “CAPABILITY” APPROACH: 6
UNITED NATIONS EFFORTS TO ACHIEVE THE OBJECTIVES OF DEVELOPMENT 6
MILLENNIUM DEVELOPMENT GOALS (MDGS): 6
SUSTAINABLE DEVELOPMENT GOALS (SDG’S) 7
DIFFERENTIATE BETWEEN ECONOMIC GROWTH AND ECONOMIC DEVELOPMENT 7
SIMILARITIES & DIFFERENCES AMONG DEVELOPING COUNTRIES 8
IMPORTANT INDICATORS: PPP & HDI 10
DEFINITION OF PURCHASING POWER PARITY (PPP): 10
DEFINITION OF HUMAN DEVELOPMENT INDEX (HDI): 10
LIVING STANDARDS CONVERGING? 10
DEFINITIONS: 10
THE GREAT DIVERGENCE: 10
REASONS TO EXPECT CONVERGENCE: 10
PERSPECTIVES ON INCOME CONVERGENCE 11
HOW LOW-INCOME COUNTRIES TODAY DIFFER FROM DEVELOPED COUNTRIES IN THEIR EARLIER STAGES 11
CONCLUSION 11
INTRODUCTION TO ECONOMIC THEORIES & MODELS 12
DIFFERENTIATE BETWEEN THEORIES OF ECONOMIC GROWTH & DEVELOPMENT 12
FOUR MAJOR ‘CLASSIC’ APPROACHES: 12
STRUCTURAL CHANGE MODELS: 13
THE INTERNATIONAL-DEPENDENCE REVOLUTION: 14
THE NEOCLASSICAL COUNTER-REVOLUTION: MARKET FUNDAMENTALISM 14
STARTING ECONOMIC DEVELOPMENT: THE BIG PUSH 16
MICHAEL KREMER’S O-RING THEORY OF ECONOMIC DEVELOPMENT 16
THE HAUSMANN-RODRIK-VELASCO (HRV) GROWTH DIAGNOSTICS FRAMEWORK 17
CONCLUSION 17
POVERTY, INEQUALITY AND DEVELOPMENT 17
MEASURING INEQUALITY AND POVERTY 17
ECONOMIC CHARACTERISTICS OF HIGH-POVERTY GROUPS 20
AREAS OF INTERVENTION 20
DIRECT TRANSFER PAYMENTS & THE PUBLIC PROVISION OF GOODS AND SERVICES 20
CONCLUSION 20
2
, POPULATION GROWTH & ECONOMIC DEVELOPMENT 21
THE BASIC ISSUE: POPULATION GROWTH AND QUALITY OF LIFE [FOR INFORMATION ONLY] 21
WORLD POPULATION GROWTH, 1750-2050 [FOR INFORMATION ONLY] 21
EXPLAIN CONCEPTS RELATING TO POPULATION GROWTH 21
THE CAUSES OF HIGH FERTILITY IN DEVELOPING COUNTRIES: THE MALTHUSIAN & HOUSEHOLD MODELS 22
THE CONSEQUENCES OF POPULATION GROWTH 23
SOME CONFLICTING PERSPECTIVES 23
GOALS AND OBJECTIVES: TOWARD A CONSENSUS[READ ONLY] 24
BASIC POLICY CONSIDERATIONS TO REDUCE THE POPULATION GROWTH RATE 24
CONCLUSION 25
URBANISATION & MIGRATION 25
THE MIGRATION AND URBANISATION DILEMMA 25
DEFINITIONS: 25
THE ROLE OF CITIES 25
THE ROLE OF CITIES IN URBANIZATION AND DEVELOPMENT 25
EFFICIENT URBAN SCALE [PG. 353] 26
THE URBAN GIANTISM PROBLEM [PG. 354] 26
URBAN INFORMAL SECTOR [PG. 358] 27
AN OVERVIEW OF A MIGRATION AND EMPLOYMENT STRATEGY [PG. 374] 28
CONCLUSION 28
EDUCATION AND HEALTH IN ECONOMIC DEVELOPMENT 28
EDUCATION AND HEALTH AS JOINT INVESTMENTS FOR DEVELOPMENT 28
INVESTING IN EDUCATION AND HEALTH: THE HUMAN CAPITAL APPROACH (SUMMARY) 28
CHILD LABOUR 29
EDUCATIONAL GENDER GAP 29
HEALTH, PRODUCTIVITY, AND POLICY 29
PRODUCTIVITY 29
HEALTH SYSTEMS POLICY 29
CONCLUSION 30
AGRICULTURAL TRANSFORMATION AND RURAL DEVELOPMENT 30
AN OVERVIEW OF THE STRUCTURE OF AGRARIAN SYSTEMS IN THE DEVELOPING WORLD 30
THE IMPERATIVE OF AGRICULTURAL PROGRESS AND RURAL DEVELOPMENT: 30
DEFINITION OF INTEGRATED RURAL DEVELOPMENT 30
AGRICULTURAL MARKET FAILURES AND THE NEED FOR GOVERNMENT POLICY 30
THE STRUCTURE OF AGRARIAN SYSTEMS IN THE DEVELOPING WORLD 31
THREE SYSTEMS OF AGRICULTURE: 31
SUBSISTENCE AGRICULTURE 31
SUBSISTENCE AGRICULTURE AND EXTENSIVE CULTIVATION IN AFRICA –3 HISTORICAL FORCES: 31
OVERVIEW OF A STRATEGY OF AGRICULTURAL AND RURAL DEVELOPMENT: SUMMARY 31
CONDITIONS FOR RURAL DEVELOPMENT 31
CONCLUSION 32
THE ENVIRONMENT AND DEVELOPMENT 32
CONCEPTS RELATING TO ECONOMICS AND THE ENVIRONMENT 32
DEFINITIONS: 32
3
These notes were compiled using the lecture slides and Economic Development, 13th Edition Textbook.
When utilising this information for any purpose that requires referencing, the following sources are where I obtained this
information:
Todaro, M.P. & Smith, S.C. 2020. Economic development. 13th ed. Harlow, United Kingdom: Pearson.
Stofberg, K. 2024. DEC20B Slides Topic 1-11. Stadio
Please DO NOT cite or reference my notes as this is what I summarised and understood from reading, lectures and
tutorials I attended. The purpose of these notes is to assist in gaining an understanding for the module and assisting you
the way that the information assisted me in preparing for examinations.
Please do not distribute this document or try and sell it as your own work. It took many hours of hard work to compile and
format this pack and I would appreciate not seeing my notes on the groups.
Thank you for your support!
1
, Table of Contents
INTRODUCTION TO ECONOMIC DEVELOPMENT 5
INTRODUCTION 5
THE CONTEXT OF ECONOMIC DEVELOPMENT 5
ABSOLUTE POVERTY: 5
SUBSISTENCE ECONOMY: 5
ECONOMIC DEVELOPMENT - CONCEPT: 5
THE NATURE OF DEVELOPMENT ECONOMICS: 5
THE OBJECTIVES OF ECONOMIC DEVELOPMENT 6
TRADITIONAL ECONOMIC MEASURES: 6
THE NEW ECONOMIC VIEW OF DEVELOPMENT: 6
THREE CORE VALUES OF DEVELOPMENT: 6
THE THREE OBJECTIVES OF DEVELOPMENT: 6
THE MEANING OF DEVELOPMENT: AMATYA SEN’S “CAPABILITY” APPROACH: 6
UNITED NATIONS EFFORTS TO ACHIEVE THE OBJECTIVES OF DEVELOPMENT 6
MILLENNIUM DEVELOPMENT GOALS (MDGS): 6
SUSTAINABLE DEVELOPMENT GOALS (SDG’S) 7
DIFFERENTIATE BETWEEN ECONOMIC GROWTH AND ECONOMIC DEVELOPMENT 7
SIMILARITIES & DIFFERENCES AMONG DEVELOPING COUNTRIES 8
IMPORTANT INDICATORS: PPP & HDI 10
DEFINITION OF PURCHASING POWER PARITY (PPP): 10
DEFINITION OF HUMAN DEVELOPMENT INDEX (HDI): 10
LIVING STANDARDS CONVERGING? 10
DEFINITIONS: 10
THE GREAT DIVERGENCE: 10
REASONS TO EXPECT CONVERGENCE: 10
PERSPECTIVES ON INCOME CONVERGENCE 11
HOW LOW-INCOME COUNTRIES TODAY DIFFER FROM DEVELOPED COUNTRIES IN THEIR EARLIER STAGES 11
CONCLUSION 11
INTRODUCTION TO ECONOMIC THEORIES & MODELS 12
DIFFERENTIATE BETWEEN THEORIES OF ECONOMIC GROWTH & DEVELOPMENT 12
FOUR MAJOR ‘CLASSIC’ APPROACHES: 12
STRUCTURAL CHANGE MODELS: 13
THE INTERNATIONAL-DEPENDENCE REVOLUTION: 14
THE NEOCLASSICAL COUNTER-REVOLUTION: MARKET FUNDAMENTALISM 14
STARTING ECONOMIC DEVELOPMENT: THE BIG PUSH 16
MICHAEL KREMER’S O-RING THEORY OF ECONOMIC DEVELOPMENT 16
THE HAUSMANN-RODRIK-VELASCO (HRV) GROWTH DIAGNOSTICS FRAMEWORK 17
CONCLUSION 17
POVERTY, INEQUALITY AND DEVELOPMENT 17
MEASURING INEQUALITY AND POVERTY 17
ECONOMIC CHARACTERISTICS OF HIGH-POVERTY GROUPS 20
AREAS OF INTERVENTION 20
DIRECT TRANSFER PAYMENTS & THE PUBLIC PROVISION OF GOODS AND SERVICES 20
CONCLUSION 20
2
, POPULATION GROWTH & ECONOMIC DEVELOPMENT 21
THE BASIC ISSUE: POPULATION GROWTH AND QUALITY OF LIFE [FOR INFORMATION ONLY] 21
WORLD POPULATION GROWTH, 1750-2050 [FOR INFORMATION ONLY] 21
EXPLAIN CONCEPTS RELATING TO POPULATION GROWTH 21
THE CAUSES OF HIGH FERTILITY IN DEVELOPING COUNTRIES: THE MALTHUSIAN & HOUSEHOLD MODELS 22
THE CONSEQUENCES OF POPULATION GROWTH 23
SOME CONFLICTING PERSPECTIVES 23
GOALS AND OBJECTIVES: TOWARD A CONSENSUS[READ ONLY] 24
BASIC POLICY CONSIDERATIONS TO REDUCE THE POPULATION GROWTH RATE 24
CONCLUSION 25
URBANISATION & MIGRATION 25
THE MIGRATION AND URBANISATION DILEMMA 25
DEFINITIONS: 25
THE ROLE OF CITIES 25
THE ROLE OF CITIES IN URBANIZATION AND DEVELOPMENT 25
EFFICIENT URBAN SCALE [PG. 353] 26
THE URBAN GIANTISM PROBLEM [PG. 354] 26
URBAN INFORMAL SECTOR [PG. 358] 27
AN OVERVIEW OF A MIGRATION AND EMPLOYMENT STRATEGY [PG. 374] 28
CONCLUSION 28
EDUCATION AND HEALTH IN ECONOMIC DEVELOPMENT 28
EDUCATION AND HEALTH AS JOINT INVESTMENTS FOR DEVELOPMENT 28
INVESTING IN EDUCATION AND HEALTH: THE HUMAN CAPITAL APPROACH (SUMMARY) 28
CHILD LABOUR 29
EDUCATIONAL GENDER GAP 29
HEALTH, PRODUCTIVITY, AND POLICY 29
PRODUCTIVITY 29
HEALTH SYSTEMS POLICY 29
CONCLUSION 30
AGRICULTURAL TRANSFORMATION AND RURAL DEVELOPMENT 30
AN OVERVIEW OF THE STRUCTURE OF AGRARIAN SYSTEMS IN THE DEVELOPING WORLD 30
THE IMPERATIVE OF AGRICULTURAL PROGRESS AND RURAL DEVELOPMENT: 30
DEFINITION OF INTEGRATED RURAL DEVELOPMENT 30
AGRICULTURAL MARKET FAILURES AND THE NEED FOR GOVERNMENT POLICY 30
THE STRUCTURE OF AGRARIAN SYSTEMS IN THE DEVELOPING WORLD 31
THREE SYSTEMS OF AGRICULTURE: 31
SUBSISTENCE AGRICULTURE 31
SUBSISTENCE AGRICULTURE AND EXTENSIVE CULTIVATION IN AFRICA –3 HISTORICAL FORCES: 31
OVERVIEW OF A STRATEGY OF AGRICULTURAL AND RURAL DEVELOPMENT: SUMMARY 31
CONDITIONS FOR RURAL DEVELOPMENT 31
CONCLUSION 32
THE ENVIRONMENT AND DEVELOPMENT 32
CONCEPTS RELATING TO ECONOMICS AND THE ENVIRONMENT 32
DEFINITIONS: 32
3
