Theory question 108
Economic Growth and Development(a) Define economic development.
(b) Highlight any three characteristics of a developing nation.
(c) Explain any three measures a country can adopt to facilitate economic development.
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(a) Economic development is a sustained increase in real income per head together with improvements in living standards (health, education, housing) and structural change in the economy.
(b) Any three: low per capita income; dependence on agriculture/primary exports; high population growth; high unemployment; low technology; poor infrastructure; low savings and investment; high illiteracy.
(c) Any three: invest in education and health (human capital); provide infrastructure; encourage savings and investment; attract foreign investment; diversify the economy through industrialisation; control population growth; ensure political stability and fight corruption; improve agriculture.
Development includes welfare, not only income.