Social Economic Development Instrument Implements Approaches Economic Growth

Social & Economic Development (Instrument, Implements & Approaches)

Economic Growth & Economic Development Growth: reproduction in material sphere; increase of volume of goods and services that are produced, in real terms; this process encompasses quantitative changes Development: this phenomenon is more complex process than economic growth as it encompasses both quantitative and qualitative changes, e. g. transformation of production structure, implementation of new methods of management of resources; economic development increases opportunities of economic growth as it allows to achieve higher trajectory of the latter

Social Development Social development — this phenomenon is associated with qualitative changes in social structure — these changes regard, among others, social integrity and social trust; it changes opportunities of individuals whose goal is to achieve higher social status

Socio Economic Development: Socio-economic development: it is a process of quantitative, qualitative and structural changes that are a result of actions of subjects taken within social (economic) practice. This changes influence life conditions in the following fields: Material conditions (possibility to satisfy needs associated with consumption of goods and services; it is related with the phenomena of economic growth), Economic structure and entrepreneurship, access to public goods and services (that results in changes of education level, a way of taking care of someone’s health etc. ) Relations within social system (integration between individuals, trust, security, social conflicts), environment condition, and life satisfaction.

Approaches to Development Concept of Development arouse in western Europe in 18 th century when world was being civilized and transforming in modernism which was being related with the Industrialization. Many thinkers believed that Development did not suddenly came in terms of industrialization, infact its thoughts , ideas , believes, habits were came before its emergence Idea Material

Main approaches of Development Actually, there are broadly two main approaches to the concept of economic development : The Traditional Approach or ‘The Stages of Economic Growth’ Theories of the 1950 s and the early 1960 s. The New Welfare Oriented Approach or ‘The Structural-Internationalist’ Models of the late 1960 s and the 1970 s.

Lummis & Development He explained development was not target oriented whereas it was a spontaneous emergence in which man did not tried. After 2 nd world war independence movement of neo colonies US Support to national identity of colonies America’s way of Governing ( Liberalization, free market trade, democrarcy, individualism)

The New Welfare Oriented Approach Jacob Viner was probably the first economist (1950’s) to argue that an economy could not boast of having achieved economic progress if the incidence of poverty in that economy had not diminishe international and domestic power relationships; institutional and structural economic rigidities; and, the proliferation of dual economies and dual societies both within and among the nations of the world.

It was a significant point in the history of economic thought as two mentioned concepts were divided. Since that moment economists began to understand development as combination of two elements: economic growth and a change (social and cultural, quantitative and qualitative) of the system and participation of every agent in considered process. The aim of the latter was to improve quality of life for the whole society. Reasons for such a change were sociological and philosophical ideas that appeared at the beginning of 1950 s. It was believed that ensuring equality of opportunities to satisfy everyone’s needs is essential. Furthermore, welfare of an individual became to be considered as an objective, rather than as a mean to achieve other aims.

Goulet & Development meaning of development Goulet (1971) considers three core values as an important basis and guideline: Life Sustenance: The ability to meet basic needs: There are some basic needs (food, shelter, etc. ) that are essential for mprovement in the quality of life. So the basic function of economic activity is to overcome people from misery arising from shortage of food, shelter. Self-esteem: A second universal component of the good life is self-esteem. Self-esteem refers to self-respect and independence and for development of a country it is an essential condition. Developing countries need development for self-esteem to eliminate the feeling of dominance. Freedom: A third universal value is the concept of freedom. Freedom here is understood as a fundamental sense of release from freedom, freedom from misery, institutions and dogmatic beliefs. It refers to freedom from three evils of want, ignorance and squalor.

Mc. Granahan & Developement Mc. Granahan (1972) introduces social factors as an important phenomenon in the process of economic development. According to Mc. Granahan, “development theory is much preoccupied with the rate of social factors as inputs or prerequisites for economic growth. It is widely believed that neglect of these factors has been a reason for disappointing rate of economic growth. At the same time it is evident that there is no simple universal law that can be stated regarding the economic impact of education, health, housing and other social components”.

World Bank & Developement In 1980 The World Bank outlined the challenges of development as economic growth, and joined the views of observers taking a broader perspective when in its 1991 World Development Report, it asserted: “The challenge of development is … to improve quality of life. Especially in the world’s poor countries, a better quality of life generally calls for higher incomes but it involves much more. It encompasses as ends in themselves better education, higher standard of health and nutrition, less poverty, a clearer environment, more equality of opportunity, greater individual freedom, and a richer cultural life

Late 20 th Century and Development In 1990’s economists defined development in terms of human welfare, better education, low unemployment, low malnutrition, disease, low poverty, more equality etc. and little importance has been given to GDP and its content. According to Michael Todaro definition of economic development includes both economic and social choices and suggests that improving standard of living must guarantee economic and social choices and argues that development should “expand the range of economic and social choice to individuals and nations by freeing them from servitude and dependence, not in relation to other people and nation states, but also to the forces of ignorance and human misery”.

In the United Nations Human Development Report (1994) the same idea was highlighted. The report asserts: “Human beings are born with certain potential capabilities. The purpose of development is to create an environment in which all people can expand their capabilities, and opportunities can be enlarged for both present and future generations. The real foundation of human development is universalism in acknowledging the life claims of everyone… Wealth is important for human life. But to concentrate on it exclusively is wrong for two reasons: First, accumulating wealth is not necessary for the fulfillment of some important human choices. Second, human choices extend far beyond economic well-being”.

Socio Economic Development and international institutions Millennium Development Goals, proposed by UNDP (2000), encompass reduction of poverty, health, sustainable use of resources, education, food security and good governance growing meaning of humanitarianism but also philosophical and sociological ideas concerning equality of possibilities. Obviously, popularity of taking care of environment and realizing of the role of social capital are significant factors too Knowledge should reflect in manufacturing in terms of education and technology This process was supposed to relate economic growth with support for families and children. Importance of social dimension of economic development increased.

Meier & Development Meier defines economic development very concisely as: ‘Development is the process whereby the real per capita income of a country increases over a long period of time – subject to the stipulation that the number below an absolute poverty line does not increase and that the distribution of income does not become more unequal’ Development is a PROCESS Development is a RISE IN THE REAL PER CAPITA INCOME Development can take place only over a LONG PERIOD OF TIME Development must lead to a DECREASE IN SIZE OF THE ABSOLUTELY POOR

Kindle berger and Herrick’s Approach to Development Kindleberger and Herrick maintain that economic development is generally taken to include : Improvement in material welfare, especially for persons with the lowest incomes, the eradication of mass poverty along with its correlates of illiteracy, disease, and early death; Changes in the composition of inputs and outputs that generally include shifts in the underlying structure of production away from agricultural and towards industrial activities; Organizing the economy in such a way that productive employment is general among the working age population and that employment is not a privilege of only a minority; and, Increasing the degree of participation of the masses in making decisions about the directions, economic and otherwise, in which the economy should move to improve their own welfare.

In the United Nations Human Development Report (1994) the same idea was highlighted. The report asserts: “Human beings are born with certain potential capabilities. The purpose of development is to create an environment in which all people can expand their capabilities, and opportunities can be enlarged for both present and future generations. The real foundation of human development is universalism in acknowledging the life claims of everyone… Wealth is important for human life. But to concentrate on it exclusively is wrong for two reasons: First, accumulating wealth is not necessary for the fulfillment of some important human choices. Second, human choices extend far beyond economic well-being”.

Growth is revolution whereas development is evolution Thanks