EE iNTRO
EE iNTRO
The poor countries raised their voice and created the ‘third world’
ECONOMIC DEVELOPMENT :
Traditional
Pre-conditions for take off(driving force required)
1. Savings
2. Investment (a) increases income via the multiplier/demand
effect (b) augments productive capacity by increasing the
capital stock. Growth of income requires additional
investment.
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15-21% saving and investment rate required for take off to get a growth
rate of 5%-7%. Gap in investment could be through foreign investment
Additional resources
Capital accumulation
Population growth
Better techniques of production
Improvement of skills
Other institutional and organizational arrangements
1. Definitions
Simon Kuznets-
technology
institutional adjustments
2) Distinction
Quantitative
Expansion of labour force
Structural changes
Continous increase in income
Transformation of agrarian society
Growth in population
Interdependence
Application of science and technology
Falling costs
Linkages
Economy is not developing if the disparities are not decreasing
People who are below the poverty line expect to make a living in the
cities and hence decide to migrate
Social indicators :
Life expectancy
Infant mortality
Daily calorie intake
Adult illiteracy rate
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Less developed countries like India are those countries with relatively
low per capita real income, low level of capital per person, high
incidence of mass poverty and the existence of a dual society where
outdated organizational methods, production techniques and attitudes
coexist with modernism.
1. Dualistic
Modern vs traditional even 60 years after independence
Gap widening
Does not elevate the traditional sector
2. Wide spread poverty-pronounced deprivation in well being
-material, health, education deprivation
-vulnerability and exposure to risks
-Voicelessness and powerlessness
3.Predominance of agriculture
5.Pressure of population
7.Infrastructural deficiencies
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