Theory question 111
Economic Growth and Development(a) What is economic development?
(b) Outline any five features of a developing economy.
Show the model answer
Model answer
(a) Economic development is a sustained increase in real per capita income accompanied by improvement in living standards and structural changes in the economy (education, health, technology, reduced poverty).
(b) Any five: low per capita income; dependence on agriculture and primary products; high population growth rate; high unemployment and underemployment; low level of technology; low savings and investment; poor infrastructure; high illiteracy; dependence on foreign aid and imports of manufactured goods; dualistic economy.
Explanation
Development is broader than growth: it includes welfare and structural change.