Economics, Institutions, and Development: A Global Perspective Adopted for Economic Development by Sohail Zafar Qureshi Gift University Gujranwala ECONOMIC DEVELOPMENT Michael P Todaro Chapter 01 Economic Development

Economics, Institutions, and Development: A Global Perspective While humanity share single planet it is a planet on which there are two worlds the world of the riches and the world of the poor. Ranan Weitz 1986 Chapter 01 Economic Development

How Three Quarters Live As people trough the world awake each morning to face a new day they do so under very different circumstances. More then enough to eat well clothed and healthy with reasonable degree of financial security. Others ¾ of the world are much less fortunate there health is poor, they can’t read or write, unemployed, there life is bleak and uncertain. Chapter 01 Economic Development

A Typical extended family in rural Asia A Typical extended family in rural Asia. The Asian household is likely to comprise of 10 or more people including parents five to seven children two grandparents and some aunts and uncles. They have a combined annual income in money and in kind. Together they live in a portly constructed one room house suppose tenants. Chapter 01 Economic Development

The work is hard the sun is hot and aspirations for a better life are continually being snuffed out. In this part of the world the only relief from the daily struggle for physical survival lives in the spiritual traditions of the people. If are to examine two representative families one a wealthy family from the local ruling class and the other a peasant background we would no doubt also be struck by the wide disparities in their individual living conditions. Chapter 01 Economic Development

It arise several question. One could easily be disturbed by the contrast of two life. How ever had we looked at almost any other major city in Latin America, Asia, and Africa; we would have seen much the same contrast. It arise several question. Chapter 01 Economic Development

Questions Why does such obvious affluence coexist with such dire poverty not only across different continents but also within the same country or even the same city? How can traditional low productivity subsistence society be transformed into modern high producitivity high income nations? To what extent are the development aspirations of poor nations helped or hindered by the economic activities of rich nations? By what process and under what conditions do rural subsistence farmers in the remote regions of Nigeria Brazil and Philippines evolve int successful commercial farmers? Chapter 01 Economic Development

Economics and Development Studies The study of economic development is one of the newest most exciting and most challanging bracnces of the broader disciplines of economics and political economy. One could claim that Adam Smith was the first development economist and that his wealth of nations published in 1776 was the first tretise on economic development. Chapter 01 Economic Development

Yet there are some people who would still claim that development economies is not really a distinct branch of economics in the same sense as is say macroeconomics labor economies public finance or monetary economic. Rather they would assert it is simply an amalgamation and basically an unaltered application of all these traditional fields. Chapter 01 Economic Development

The Nature of Development Economics Traditional Economics. Political Economy Development Economics Chapter 01 Economic Development

Why study development economics? What is real meaning of development? Chapter 1 and 3 What are the sources of national and international economic growth? Chapter 2, 4, 5 Which are more influential theories? Chapter 3 What are learned from historical record? Chapter 4 Role of men ad women? Chapter 5,6,8,9 11 Growth in population is development? Chapter 6 Environmentally sustainable development? Capter 10-18 Do education is development? Chapter 11 Is international trade is desirable? Chapter 12 Third world and foreign debt? Chapter 13 Do agriculture promote development? Chapter 14 Foreign exchange policy and third world? Chapter 13 14 Should rich invest in poor? Chapter 15,18 What is impact of foreign Aid? Chapter 15 Free markets and govt role? Chapter 17 Privatization a key to success? Chapter 16, 18 What are most significant issues facing the developing world? Chapter 18 Chapter 01 Economic Development

The Important Role of Values in Development Economics The social science of economics an claim neither scientific laws nor universal truths. As mentioned earlier in economics there can only be tendencies and even these are subject to great variations in different countries and cultures and at different times. Chapter 01 Economic Development

Need to Go Beyond Simple Economics We discover that resolving development problems to achieve development is a much more complicated then some economics would lead us to believe. Some economists occasionally make the mistake of confusing their theories with universal truths so they also sometimes mistakenly dismiss these no economic variables as non quantifiable and therefore of dubious important they often play a critical role in the success or failure of the development effort. Chapter 01 Economic Development

Definition Development must therefore be conceived as a multidimensional process involving major changes, in social structure popular attitudes and national institutions as well as the acceleration of economic growth the reduction of inequality and the eradiation of poverty. Chapter 01 Economic Development

Core Values of Development Sustenance: The Ability to meet basic needs Self esteem: To be a person Freedom of Servitude: To be able to chose. Chapter 01 Economic Development

Three Objectives of Developmet To increase the availability and widen the disturbance of basic life sustaining goods. To raise levels of living. To expand the range of economic ad social choices. Chapter 01 Economic Development