5 Top Reasons for Studying Development Economics:
Here we shall concentrate upon that
what is the need behind studying development and what is to be studied in
development economics:
(1) Problem of World Poverty: The discipline of Economic Development starts
with the problem of backwardness and international poverty. It means why the
world has been divided into two opposite poles; the North and the South. In other words,
why the development gap between countries of the world is increasing, i.e., the rich
countries are getting rich while the poor countries are getting poor. In this
respect, the Lorenz curve and Gini co-efficient like measures are employed to
measure international inequalities. Therefore, a moral and ethical justification
exists to study development economics as a separate body. In addition to know
about world poverty, it is the economic development which helps us to know what
is the classification of the countries at international level, i.e., how many
are developed countries, how many are middle income earners and how many are
less developed countries. With this we come across the salient features of
developing or poor economies. Thus the economic development, as a subject, helps
us to know about the characteristics of developing countries, though these
characteristics are diverse and as well as common.
(2) Meaning Of Economic Development:
It is the education and the mass media
both at the country level and at world level which arouse the feelings
in favor
of development, i.e., the people of backward countries of Africa, Asia
and Latin
America became aware of with the concept of Economic Development. The
Western
experts were of the view that if real GNP and per capita GNP of a
country
increase over a long period of time it would be given the name of
economic
development. But later on, a lot of criticism was made against these
measures of
development. Then the economists engaged themselves in finding other
measures of
economic development. Accordingly, the social and economic indicator
approach,
the basic needs approach and the construction of human development index
approach have been introduced by the economists and sociologists to
measure
economic development. Thus in Development Economics we study economic
development and different measures which can be employed to measure it.
(3) Models Of Economic Growth: In Development Economies we come across a lot
of models of economic growth which present the picture of economic growth of
western advanced countries. It means that how the developed nations got growth
or what was their route of economic growth. In this respect, we study the growth
model as presented by Adam Smith, Ricardo and other classical economists; the
neoclassical models of economic growth as presented by J.E. Meade, Robert Solow
and Swan etc.; the Schumpeter's model of economic growth; the Harrod-Damar
models of economic growth; and many other models of economic growth.
(4) Theories Of Under-Development
And Development: Development Economics also
presents a lot of theories regarding the under-development of the poor countries
as well as the theoretical means and ways through which the poor and backward
nations of the world can attain economic development. The first set of theories
is given the name of structuralist theory of development which states
that the poverty of the poor nations is attributed to structural problems
of the UDCs. The other theory is given the name of 'International Dependencia
model which states that it is the deliberate behavior on the part of DCs which
exploited UDCs in such a way to keep them poor and backward. The third theory of
economic development is called Stage Theory, where it has been told that the
process of economic growth and development is furnished with certain stages (Rostow's
stages of economic growth) whereby it has been emphasized that poverty comes
into being due to shortage of capital, and growth can be attained by increasing
the savings and investment (even through foreign resources). The fourth major
theory of economic growth is given the name Neo-classical counter-revolution
theory which says that rather blaming international forces the poor countries
should depend upon free markets and privatization for their economic growth.
(5) Problems Of Population: The models of economic growth tell us that labor
is an important factor of economic growth. But as far as developing countries are
concerned it is not so. The population growth has led to create a lot of
problems i.e., population in developing countries is rising faster than natural
resources and the capital accumulation. Consequently, the developing countries
have to face ever-rising unemployment. Moreover, the population growth often
leads to migration of people from rural areas to urban areas. As a result, a lot
of problems regarding urbanization and environmental pollution are rising. In
such state of affairs, it is the Economic Development which deals with the
issues of population growth, its effects on production, employment, migration,
urbanization and environment etc. Again development economics presents different
theories regarding population, i.e., what should be the optimum level of
population for any country, Let quantity of labor which could have
compatibility with the resources of the country.
Komentar
Posting Komentar