ECONOMIC

DEVELOPMENT

Presenting by :
Under the Guidance of :
Dzulhijjah Yetti, M.Pd
 PRESENTATION OUTLINE
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• WHAT IS DEVELOPMENT?
• CONCEPT OF ECONOMIC DEVELOPMENT
• MAIN ELEMENTS OF ECONOMIC DEVELOPMENT
• FEATURES OF SUSTAINABLE DEVELOPMENT
• CONDITIONS OF SUSTAINABLE DEVELOPMENT
• SIGNIFICANCE OF SUSTAINABLE DEVELOPMENT
• DIFFERENCE BETWEEN ECONOMIC GROWTH,
ECONOMIC DEVELOPMENT & SUSTAINABLE
DEVELOPMENT
• DETERMINANTS OF ECONOMIC DEVELOPMENT

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• ECONOMIC DETERMINANTS

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• NON-ECONOMIC DETERMINANTS

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 WHAT IS DEVELOPMENT?
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• Development is not purely an economic

phenomenon but rather a multi-dimensional
and reorientation of entire economic and
social system.
• Development is process of improving the
quality of all human lives.
• Development is the reduction or elimination
of poverty, inequality and unemployment
within the context of a growing economy.

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• Development means less poverty, cleaner

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environment, more equal opportunity, greater

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individual freedom and a richer cultural life.

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 CONCEPT OF ECONOMIC
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D DEVELOPMENT

• Although Adam Smith had examined the

problem economic development two
hundred years ago, yet is only for the
last 10-15 years the economists took
great interest in the study of the
problems of underdeveloped countries.

• Actually Economic Development refers to

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that process by which per capita income

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and economic welfare of country

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increase overtime.

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 Difference
between
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Growth &
Economic
Economic Development Sustaina
Develop ble
ment Develop
ment
Distinction
Determina among
nts of Economic
Economic Growth,
Economic Economic
Developm

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Growth Developme

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Sustainable

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Developme

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 ECONOMIC GROWTH
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• Economic growth refer to quantitative changes.

• It is a process of growth in the national & per
capita income.
• According to Mc Connell “Economic Growth may
be defined as an increase in the Economy’s real
gross national product or real national income.”
•  
• According to his defined, the production of Larger
amount of Goods & Services signifies growth.
• According to Samuelson “It is a process where by

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per capita real income increases.

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Per Capita =

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 MAIN ELEMENTS OF
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D ECONOMIC DEVELOPMENT

Economic Development is a Process

Economic Development is increase in Real Per

Capita income.

It is a Long Period Concept.

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Absence of Rise in Poverty and Inequality.

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 DIFFERENCE BETWEEN
ECONOMIC DEVELOPMENT
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AND ECONOMIC GROWTH
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ECONOMIC ECONOMIC
GROWTH DEVELOPMENT

• SINGLE o MULTI DIMENSIONAL

DIMENSIONAL o QUALITATIVE
• QUANTITATIVE o SPONTANEOUS &
• CONTINUOUS AND DISCONTINUOUS
STEADY CHANGE CHANGE

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• USED FOR o USED FOR

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DEVELOPING
DEVELOPED

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ECONOMIES

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ECONOMIES

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 SUSTAINABLE
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• There is a new concept of Economic

Development known as Sustainable
Development

• Actually, Sustainable Development is

that process of economic development
which aims at maintaining the quality of
life of both present and future

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generations without harming natural

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resources and environment.

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 FEATURES OF SUSTAINABLE
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• Efficient us of Natural Resources.

• No Reduction in the Quality of Life of the future

generation.

• No Increase in Pollution.

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• Does not limit Development.

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 CONDITIONS OF
SUSTAINABLE
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Economic development

Conversation of Natural Capital Stock.

Reduction in Industrial Pollution.

Reduction in Agricultural pollution.

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Comprehension Rural Development.

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 SIGNIFICANCE OF
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D SUSTAINABLE DEVELOPMENT

Raising the standard of living of the existing

Population.

Checking any harm to the living standard of the

future generation.

Protecting the people against Pollution of their

quality of their life and health.

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Conserving environment which is so much

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necessary for sustainable development.

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 DIFFERENCE BETWEEN ECONOMIC
GROWTH, ECONOMIC

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DEVELOPMENT & SUSTAINABLE
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DEVELOPMENT
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ECONOMIC ECONOMIC SUSTAINABLE

GROWTH DEVELOPMENT DEVELOPMENT
Refers to long term Refers to long term Per capita income,
increase in real per increase in real per economic welfare &
capita income. capita income and economic welfare of
economic welfare. future generation.
Used for Developed Used for Used for both type of
Economics. underdeveloped Economies.
Economies.
It ignores the It does not ignore Doesn’t ignore
distribution of Distribution of Distribution of
Income. Income. Income of Present
and Future

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Generation.

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Ignores Protection of No Special attention Special Emphasis on

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Environment & to environmental Environmental &

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Checking of Pollution protection & Checking of

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Checking of Pollution.

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pollution.
 DETERMINANTS OF ECONOMIC

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DEVELOPMENT
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Economic Non-Economic
Determinants Determinants

Economic
Developmen

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 ECONOMIC DETERMINANTS
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1. Quantity and Quality of Natural Resources.

2. Quantity and Quality of Human Resources.

Human Resource
Able
Entreprene
Physical Human urs

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Labour Capital &

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Organisatio

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 ECONOMIC DETERMINANTS
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3. Physical Capital Resources

Increase in Real Saving

Mobilisation of Savings or Resources

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Investment

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 ECONOMIC DETERMINANTS
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4. Low Capital Output Ratio
Capital Output Ratio = K/Y
Here, K = Capital
Y = Output or Income

5. Large extent of the Market

6. Technical Progress

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7. Growth oriented Economic Agencies

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8. International Determinants

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 NON-ECONOMIC
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D DETERMINANTS

Social Determinants

Political Determinants

Religious Determinants

Freedom From Corruption

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Law and Order Situation

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Aspiration of Development

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That’s all. Thank you! 
Any Questions?