Theory question 107
Economic Growth and Development(a) What is economic development?
(b) State three features of a developing country.
(c) Explain any four factors that can speed up the economic development of your country.
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(a) Economic development is a sustained rise in real income per head accompanied by improvements in living standards and structural change (better health, education, technology, less poverty).
(b) Any three: low per capita income; dependence on primary production; high population growth; high unemployment; low technology; low savings and investment; poor infrastructure; high illiteracy.
(c) Any four: increased savings and investment (capital formation); education and skills development (human capital); improved technology; good infrastructure; political stability and good governance; industrialisation and diversification; control of population growth; foreign investment and aid; fighting corruption.
Explain how each factor raises output or welfare.