Development Economics: Understanding Growth, Poverty, Inequa…

1. Meaning of Development Economics

Development Economics studies how countries grow and improve peoples lives.

Focus: income, poverty, health, education, and living standards.

2. Economic Development vs Economic Growth

Economic Growth

Increase in income (GDP, national income)

Economic Development

Growth + improvement in quality of life

Includes education, health, equality

Development = Growth + Welfare

3. National Income (GDP)

Total value of goods and services produced in a country

Used to compare countries

Per Capita Income

Income per person

Better indicator of living standard

4. Human Development

Focus on people, not just money

Main Factors:

Education

Health

Standard of living

HDI (Human Development Index)

Combines income, education, and life expectancy

5. Poverty

Condition where people cannot meet basic needs

Types:

Absolute poverty (minimum survival level)

Relative poverty (compared to others)

Causes:

Unemployment

Low income

Lack of education

6. Unemployment

When people want to work but cannot find jobs

Types:

Seasonal unemployment

Disguised unemployment (common in agriculture)

Educated unemployment

7. Sectors of Economy

Primary Sector Agriculture

Secondary Sector Industry

Tertiary Sector Services

Development = shift from primary secondary tertiary

8. Sustainable Development

Development without harming future generations

Examples:

Using renewable resources

Controlling pollution

9. Role of Education & Health

Education increases skills and income

Health improves productivity

Both are key for development

10. Role of Government

Reduce poverty

Provide education & healthcare

Create jobs

Build infrastructure

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