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Development Economics
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Development Economics
Introduction to Development Economics
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DEVELOPMENT ECONOMICS
Development Economics is the branch of Economics
which deals with the Economic Development of the
Less Developed Countries (LDC).
Along with the efficient utilization of scarce
resources and their growth over time as focused
on by traditional economics, development
economics tries to cover the political, social ,
economic and institutional mechanisms to bring
about rapid and large scale improvements in the
life standards of poor and malnourished
populations of developing countries.
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Development Economics The need for a separate
field of economics was felt as existing and
traditional areas of economics were unable to
bring any significant shift in the economic
prospects of many developing countries. In the
above context development economics tries to
focus on various areas to bring about a
noticeable change in the economic prospects of
developing countries-
Development Economics is said to be the Economics
dealing with Economic Growth of the less
developed countries (LDCs), Poverty
Unemployment, Rural, Agricultural and Industrial
backwardness, Human and Capital Resource
Mobilization and Problems regarding International
Backwardness and Development.
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Development Economics (continued) Development
Economics, must, therefore, identify the
mechanisms that keep entire societies in poverty
and develop strategies that will enable people to
break out of the trap of poverty and
backwardness. Development Economics needs to be
concerned with political, economic and cultural
requirements of progress and change so that rapid
transformation of entire societies so as to
spread the fruits of economic progress as broadly
as possible.
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• Important Questions in Development Economics?
• What is the real meaning of development and how
  we can develop a better understanding of the
  process of development.
• What are the sources of growth and why do some
  countries develop rapidly whereas others lag
  behind ?
• Is development an internally or externally
  induced phenomena?
• 4. What can be learned from the historic process
  of development as shown by the developed
  countries? How similar or different conditions
  are in less developed countries in comparison to
  developed countries when the started on the
  process of development?

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• Important Questions in Development Economics?
• 5. What role can women play in speeding up the
  process of development? How can their role in
  economic processes be improved?
• 6. What is the impact of rapid population growth
  on the process of growth and development
• What are the causes of extreme poverty and what
  policies are most effective in improving the lot
  of the extremely poor?
• 8. What is the impact of better or poor health
  on the process of development?

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• Important Questions in Development Economics?
• 9. What are the causes of unemployment in
  developing countries?
• 10. What is the connection between agriculture
  and development?
• What is the link between ecology and development
• 12. Does expanded international trade work in
  favor of developing countries how should
  developing countries protect local industry?

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Important Questions in Development
Economics? 13. Should primary products be
exported or should they be processed and value
added? 14. How can developing countries resolve
their serious debt issues? 15. When and how
should developing countries protect local
industry? 16. What impacts have IMF World Bank
had on the development of third world economies?
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Important Questions in Development Economics?
17. Multi national corporations and investment in
developed countries. Who gains? 18.
Globalizations impact on poorer
countries? 19.What is the impact of foreign aid
on developing nations? 20.Are free market
economy and privatization the answer to poor
countries development and what should be the role
of government in developing countries? 21 Why
do developing countries have such poor
development policies?
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Important Questions in Development Economics?
22. What is the impact of fiscal and monetary
policies on development? Do large military
budgets stimulate or retard growth? 23. What are
the reasons for extreme differences in income
between the relatively few rich and many poor?
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Scope of Development Economics

• Chapter 1 Introduction to Development
  Economics
• This chapter introduction to Development
  Economics introduces the subject, its importance
  and its area of study. This chapter covers the
  following points in detail.
• What is Development Economics and its Area of
  study
• What are the Reasons for studying development
  economics.
• Which countries are Less Developed Countries
  (LDCs) and what are their common Characteristics.

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Scope of Development Economics..continued

• Chapter 2 Development Vs Growth
• This chapter Development Vs Growth brings under
  discussion the basic difference between the two
  economics terms and specifically focuses on
  economic development. It covers the following
  points in detail.
• What is Economic Growth Economic Development,
• What are the Elements of economic development
• What Structural Changes are needed for development

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Scope of Development Economics..continued

• Chapter 3 Economic Development
• This chapter Economic Development, highlight
  the importance of economic development. It also
  determines that for a country to develop, what
  the are essentials. This chapter covers the
  following points in detail.
• What are the Objectives of Development
• What are the Indicators of economic development
• What are the Pre-requisite of economic development

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Scope of Development Economics..continued

• Chapter 4 Economic Development (continued.)
• This chapter is the continuity of the chapter 3
  Economic Development focuses on the various
  obstacles in the economic development. This
  chapter covers the following points in detail.
• What are the Obstacles to economic development of
  the Less Developed countries.
• What are the Remedial measures for economic
  development.

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Scope of Development Economics..continued

• Chapter 5 Capital Formation
• This chapter Capital Formation, highlight the
  importance of increase in the stock of capital of
  a country over time. It covers the following
  points in detail.
• What is Capital Formation its importance
• What are the Sources of capital formation in the
  Less Developed Countries (LDCs)
• What are the Causes of low capital formation in
  LDCs
• What are the Measures to increase capital
  formation.

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Scope of Development Economics..continued

• Chapter 6 Development Tools
• In this chapter Development Tools, various
  tools that could be used for developing a country
  are discussed. It covers the following points in
  detail.
• Per capita Income economic development
• Deficit Financing economic development
• Privatization Policy economic development
• Technology economic development

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Scope of Development Economics..continued

• Chapter 7 Foreign Resources and Development
• This chapter Foreign Resources and Development
  is the continuity of the previous chapter
  Development Tools. Foreign Resources can be
  utilized for economic development of a country.
  This chapter covers the following points in
  detail.
• What is Foreign Aid What is the role of Foreign
  Aid in the economic development of LDCs.
• What is Foreign Investment What is the role of
  Foreign Investment in the economic development of
  LDCs.

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Scope of Development Economics..continued

• Chapter 8 Population Development
• This chapter Population and Development
  focuses on the population aspect of the LDCs.
  This chapter covers the following points in
  detail.
• What are the Effects of increasing population on
  the economic development of LDCs.
• What is Human Capital Formation and what are its
  problems in LDCs.
• What is Human Resource Development
• What is Manpower planning and what are its
  objectives.

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Scope of Development Economics..continued

• Chapter 9 Urbanism Economic Development
• This chapter Urbanism Economic Development
  explains the benefits of the urban areas to the
  people, Manufacturers, traders, and the whole
  economy. This chapter will cover the following
  points in detail.
• What is an urban area
• What are the benefits of urban areas to
• The household
• The trade
• The economy.

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