Economic Growth vs. Economic Development
1. Economic Growth:
o Refers to an increase in a country's Gross Domestic Product (GDP).
o Indicates the production of more goods and services.
o Economic growth rates reflect whether a country is developing or
regressing.
2. Economic Development:
o Involves improving the standard of living, including health, education,
and infrastructure.
o Goes beyond just GDP growth; focuses on overall well-being.
3. Importance of Economic Development:
o High economic growth alone is not sufficient to reduce poverty.
o Economic development is necessary to improve living conditions
and reduce inequality.
4. Tiger Economies of East Asia:
o Countries like Singapore, Malaysia, Thailand, South Korea, and China
are examples.
o These countries that have experienced rapid economic growth and
improvements in living standards
5. Negative Growth Rates:
o They face challenges in improving living standards and reducing
poverty.
6. Development Policies in South Africa:
o Focus on strategies to improve the living standards of citizens.
o Policies implemented since 1994 aimed at addressing economic and
social challenges.
,Unit 1: Methods of Development
1.1 Measuring Levels of Development
1. Categories of Countries:
o Developed Countries: Highly industrialized with a high standard of
living
o Developing Countries: Lower levels of industrialization, lower
standard of living, and less access to goods and services (e.g.,
countries in Africa, South-East Asia, Central and South America).
2. Other Classifications:
o More Developed Countries (MDCs) vs. Less Developed Countries
(LDCs).
o Industrialized Countries vs. Industrializing Countries.
o Rich Economies (upper-middle-income and high-income countries)
vs. Poor Economies (low-middle-income and low-income countries).
3. Inequalities Within Categories:
o Even within the same category, there can be significant disparities. For
example, Brazil is wealthier than Bangladesh, though both are
developing countries.
4. Human Development Index (HDI):
o The United Nations compiles the HDI to measure development levels
based on:
Health: Life expectancy at birth.
Education: Mean years of schooling and expected years of
schooling.
Standard of Living: GDP per capita.
o HDI ranks countries on a scale from 0 (lowest) to 1 (highest).
, 1.2 Methods to Improve Levels of Development
1. Economic Development Directions:
o Economies can develop, stagnate, or regress.
o The focus of development has shifted from industrialization to service
and technology-driven economies.
o Development requires improvements in HDI indicators like poverty,
inequality, and unemployment, not just GDP growth.
2. Methods to Achieve Development:
o Natural Resources: Effective use of natural resources like arable land,
minerals, and fuels to increase output
o Industrial Development: Developing industries to supply
goods/services domestically and create jobs, especially in rural areas.
o Human Resources: Educating and ensuring the health of the
population to contribute to development.
o Economic Partnerships: Securing fair trade through agreements and
joining trade blocs
o Capital Formation: Savings and investments drive early-stage
development. Foreign investments can be unstable, so domestic
savings are crucial.
Unit 2: Common Characteristics of Developing Countries
Key Concepts:
Birth Rate: Number of live births per 1,000 people in a year.
Dependency Burden: Ratio of dependents (aged 0-14 and over 45) to the
working-age population (15-64).
Labour Force: Citizens aged 15-64 who are employed or seeking
employment.
Labour Productivity: Output per worker over a period, e.g., in an hour.
Population Growth: The increase in the number of people, which can strain
resources.
1. Economic Growth:
o Refers to an increase in a country's Gross Domestic Product (GDP).
o Indicates the production of more goods and services.
o Economic growth rates reflect whether a country is developing or
regressing.
2. Economic Development:
o Involves improving the standard of living, including health, education,
and infrastructure.
o Goes beyond just GDP growth; focuses on overall well-being.
3. Importance of Economic Development:
o High economic growth alone is not sufficient to reduce poverty.
o Economic development is necessary to improve living conditions
and reduce inequality.
4. Tiger Economies of East Asia:
o Countries like Singapore, Malaysia, Thailand, South Korea, and China
are examples.
o These countries that have experienced rapid economic growth and
improvements in living standards
5. Negative Growth Rates:
o They face challenges in improving living standards and reducing
poverty.
6. Development Policies in South Africa:
o Focus on strategies to improve the living standards of citizens.
o Policies implemented since 1994 aimed at addressing economic and
social challenges.
,Unit 1: Methods of Development
1.1 Measuring Levels of Development
1. Categories of Countries:
o Developed Countries: Highly industrialized with a high standard of
living
o Developing Countries: Lower levels of industrialization, lower
standard of living, and less access to goods and services (e.g.,
countries in Africa, South-East Asia, Central and South America).
2. Other Classifications:
o More Developed Countries (MDCs) vs. Less Developed Countries
(LDCs).
o Industrialized Countries vs. Industrializing Countries.
o Rich Economies (upper-middle-income and high-income countries)
vs. Poor Economies (low-middle-income and low-income countries).
3. Inequalities Within Categories:
o Even within the same category, there can be significant disparities. For
example, Brazil is wealthier than Bangladesh, though both are
developing countries.
4. Human Development Index (HDI):
o The United Nations compiles the HDI to measure development levels
based on:
Health: Life expectancy at birth.
Education: Mean years of schooling and expected years of
schooling.
Standard of Living: GDP per capita.
o HDI ranks countries on a scale from 0 (lowest) to 1 (highest).
, 1.2 Methods to Improve Levels of Development
1. Economic Development Directions:
o Economies can develop, stagnate, or regress.
o The focus of development has shifted from industrialization to service
and technology-driven economies.
o Development requires improvements in HDI indicators like poverty,
inequality, and unemployment, not just GDP growth.
2. Methods to Achieve Development:
o Natural Resources: Effective use of natural resources like arable land,
minerals, and fuels to increase output
o Industrial Development: Developing industries to supply
goods/services domestically and create jobs, especially in rural areas.
o Human Resources: Educating and ensuring the health of the
population to contribute to development.
o Economic Partnerships: Securing fair trade through agreements and
joining trade blocs
o Capital Formation: Savings and investments drive early-stage
development. Foreign investments can be unstable, so domestic
savings are crucial.
Unit 2: Common Characteristics of Developing Countries
Key Concepts:
Birth Rate: Number of live births per 1,000 people in a year.
Dependency Burden: Ratio of dependents (aged 0-14 and over 45) to the
working-age population (15-64).
Labour Force: Citizens aged 15-64 who are employed or seeking
employment.
Labour Productivity: Output per worker over a period, e.g., in an hour.
Population Growth: The increase in the number of people, which can strain
resources.
