What is Economy And Economic Development?

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What-is-Economy-And-Economic-Development

Economically, the countries of the world are neatly categorized under two headings; Developed countries and developing countries. Nations like America, Russia, France, England and the likes falls under the former whereas the latter includes Pakistan, India, Bangladesh, Nepal and so on. This is concluded based on the per capita income of a person living in the country. If it is low then you are a developing country else it’s otherwise. A country’s worth is based on its resources and economic stability. As a nation you are required to work towards a better situation. The effort made to be more economically stable is called economic development.

What is Economic Development?

According to Snyder, it means increasing a country’s productions in long term.
Watson refers to it as the production of country’s goods to accommodate the growing population.
For Arthur Louis, it is the increase in the per capita income.
All in all, economic development really is the production of resources and goods that will meet the supply and demand margin. In this scenario, where economic development is greater than the increase in population then that contributes towards an increase in the per capita income.
Hence, economic development is a phenomena which when takes place, it results in some changes and results as well which are directly related to the availability of goods and their demand. It has a lot of interrelated factors collaborating with each other in order to achieve greater economic stability. When a country increases production, it provides the masses with employment increasing its per capita income. This results in a better standard of living and stabilized economic condition.
However, you do not achieve this situation overnight. You have to work towards it for a long period of time because your actions and steps are not immediately effective. It is a slow and gradual process for which one has to be really patient.

A Modern Outlook of Economic Development

A new viewpoint suggests that looking at the definition of economic development simply through the narrow lens of production, supply and demand and per capita income is not enough. You need to consider other factors of an individual level such as society, institutions, community, economics and fair distribution of wealth.
According to modern theorists, even a decrease in poverty indicates development. On the other hand, if there is more business and employment but the quality of life is stagnant then economic development is non existent. They enunciate on intangible prospects such as security, respect and freedom because they believe that this is something a common man can be provided with. Provision of basic necessities of life is more important than developing the economic situation only along the lines of monetary value.

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