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Basic Development Economics Notes

The document outlines key concepts in development economics, distinguishing between growth and development, and discussing classic and contemporary theories. It covers development goals, measures of poverty and inequality, and the importance of the Human Development Index and sustainable development. Additionally, it addresses globalization's positive and negative impacts on developing countries.

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435 views3 pages

Basic Development Economics Notes

The document outlines key concepts in development economics, distinguishing between growth and development, and discussing classic and contemporary theories. It covers development goals, measures of poverty and inequality, and the importance of the Human Development Index and sustainable development. Additionally, it addresses globalization's positive and negative impacts on developing countries.

Uploaded by

ridhigarg2024
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Basic Development Economics Notes

UNIT 1: Development and Underdevelopment

- Growth vs Development:

Growth is the quantitative increase in output (e.g., GDP), whereas Development encompasses

broader

aspects such as health, education, and equality.

- Classic Approaches to Development:

1. Linear Stage Theory (e.g., Rostow's Stages of Economic Growth).

2. Structural Change Models (e.g., Lewis dual-sector model).

3. Dependency Theory: Highlights exploitation of developing countries by developed ones.

- Contemporary Theories:

1. Capabilities Approach (Amartya Sen): Development as freedom to enhance individual

capabilities.

2. Inclusive Growth: Growth benefiting all sections of society.

- Key Concepts:

Underdevelopment involves underutilized resources leading to poverty and inequality.

UNIT 2: Development Goals and Indicators

- Development Goals:

1. Millennium Development Goals (MDGs).

2. Sustainable Development Goals (SDGs): Focus on poverty eradication, gender equality, climate
action, etc.

- Measures of Poverty:

1. Absolute Poverty: Income below $1.90/day (World Bank threshold).

2. Relative Poverty: Income compared to society's average income.

- Inequality Indicators:

1. Gini Coefficient: Measures income inequality (0 = equality, 1 = inequality).

2. Lorenz Curve: Graphical representation of income distribution.

- Examples:

Poverty in India (urban vs rural) and Scandinavian countries (high HDI, low inequality).

UNIT 3: Capabilities, Human Development, and Sustainable Development

- Human Development Index (HDI):

Combines life expectancy, education, and per capita income to rank countries.

- Amartya Sen's Capabilities Approach:

Development is about expanding individual freedoms and capabilities.

- Sustainable Development:

Development that meets present needs without compromising the future. Focuses on economic,

social, and environmental dimensions.

- Examples:

1. Bhutan's Gross National Happiness approach (success).


2. Deforestation in the Amazon (challenge).

UNIT 4: Globalization and Development

- Globalization:

Integration of economies, cultures, and policies across nations.

- Positive Impacts:

1. Market access for developing countries.

2. Knowledge transfer and improved living standards.

- Negative Impacts:

1. Dependency on developed nations.

2. Loss of cultural identity and uneven income distribution.

- Examples:

1. Growth of India's IT sector due to globalization.

2. Criticism of garment industry exploitation in Bangladesh.

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