Following are some of the important structural changes arising out of economic development: i Shift in Economic Activities: In most of the underdeveloped agricultural countries, the structural change may be initiated through issue in proportion of population engaged in agriculture and thereby increase in the number of persons engaged in non-agricultural occupations. Low the results in low level of income and low rate of savings leading to low rate of investment, which is again responsible for low rate of productivity.
In terms of social relationships, inequality on a larger world introduces more essay and crime. Thus AB represents the development production curve.
Essay on the Economic Development of a Country
According the a Global Wealth Report, 44 percent of world net worth is held by only 0. Thus the vicious development of poverty is resulted from various vicious circles related to demand side and supply side of capital. All the countries deemed as third world has had a history of colonial rule, most were exploited through issue, imperialism, neo colonialism etc.
And in this world United State supported the South Korean,so this war is a war represent the conflict between democracy which the western world support and the communism which China and the Soviet Union follow. Two side of the war all cost a lot of things,such as the money and the life of the soldiers. In fact no one definably won the war, both of the countries lose the war and both of the countries won the war. Many of these changes have turned humanity into a modern society; however, they have impacted in a negative way such as the conflict between nations over power and territories that eventually lead to atrocious events like world wars. Certainly, it took a while before the world began to be more open to new idelogies. This is why political instability and rapid urbanization cause problems in the developing world today. Nations within the developing sections of the world have attempted to improve their situation in many ways. For example, these developing nations want to promote economic diversity and education. Economic diversity can be defined as producing various kinds of crops and goods so that the nation is not dependent on a single export. By promoting education, governments set up schools to train students in the skills needed in a modern industrial economy, therefore creating more skilled workers for jobs in the management field as opposed to labor. The examples of economic diversity and education are ways in which nations within the developing world have attempted to change their situations. In conclusion, the economic situation which exists in the developing world today, is dependence on the industrialized world. They are dependent because they need a market for their resources, and the products of industry. This situation contributed to problems such as political instability, and rapid urbanization. Stability, peace, protection from external aggression and legal protection generally raises morality, initiative and entrepreneurship. Formulation of proper monetary and fiscal policy by an efficient government can provide necessary climate for increased investment and also can stimulate capital formation in the country. Thus in order to accelerate the pace of economic development the government must make necessary arrangement for the maintenance of law and order, defence, justice, security in enjoyment in property, testamentary rights, assurance to continue business covenants and contracts, provision for standard weights and measures, currency and formulation of appropriate monetary and fiscal policies of the country. But the economy of underdeveloped countries is now facing serious threat from large scale disorder, terrorism, disturbances in the international border etc. All these have led to diversion of resources and initiatives from developmental to non-developmental ends. Moreover, under such a chaotic situation, capital formation process, business initiatives and enterprise of private firms are seriously suffered and distorted leading to a stagnation of economy in these countries. Administrative Efficiency: Economic development of a country also demands existence of a strong, honest, efficient and competent administrative machinery for the successful implementation of government policies and programmes for development. The existence of a weak corrupt and inefficient administrative machinery leads the country into chaos and disorder. Essay 3. Obstacles or Constraints on Economic Development: The development process of an underdeveloped or developing economy is not an easy task rather it is a complicated one as these countries are not having any common characteristics. Thus the underdeveloped or developing countries are facing several constraints or obstacles to its path n economic development. These Constraints on the path of economic development are of two types: a Short-term constraints and b long-term constraints. These short-term constraints are related to over concentration and stagnation in agricultural sector, unemployment and under-employment, low productivity of capital, the growing deficit in its balance of payment position etc. Again, the long-term constraints include infrastructural bottlenecks, financial constraints etc. The following are some of the important obstacles or constraints on the path of economic development of underdeveloped countries: i Colonial Exploitation: In the initial part of their development process, most of the underdeveloped countries were under foreign domination which had led to the huge colonial exploitation by the foreign rulers. Foreign rulers converted these economies as primary producing countries engaged in the production of raw materials only to be supplied to the ruler country at cheaper prices and also a potent market for the sale of the manufacturing products produced by the ruler country. Foreign capitalists mostly invested their capital on mining, oil drilling and plantation industries where they exploited the domestic workers to the maximum extent and remitted their profit to their parent country. They have also destroyed the cottage and small industries by adopting unfair competition which has put a huge pressure on agriculture, disguised unemployment and poverty. After independence, these underdeveloped countries like India had to face serious obstacles to break this deep rooted impasse of low level equilibrium traps. All these imperfections have resulted low level of output and low rate of productivity per worker. This has forced the gross output of these countries for less than the potential output. Suppose the country is producing only two commodities A and B. The production possibility curve AB represents the production frontier which shows the various combinations of commodity A and B that may be produced by the country to its maximum extent through its fuller and best possible allocation of resources. Thus AB represents the potential production curve. But the actual production curve of the underdeveloped country denoted by AB lies much below the potential production curve AB due to market imperfections resulting in misallocation and under-utilisation of resources in the country. Thus due to market imperfections, the underdeveloped countries fail to reach the optimum production function due to lack of optimum allocation of resources. Inspite of their best attempt, the rate of savings of these underdeveloped countries remained very low, varying between 5 to 9 per cent only of their national income as compared to that of 15 to 22 per cent in the developed countries. Under such a situation, the rate of investment in these countries is very low leading to low level of capital formation and low level of income. Vicious circle in the underdeveloped countries represented by low productivity is resulted from capital deficiency, market imperfections, economic backwardness and poor development. This vicious circle operates not only on demand side but also on supply side. Low productivity results in low level of income and low rate of savings leading to low rate of investment, which is again responsible for low rate of productivity. Thus the vicious circle of poverty is resulted from various vicious circles related to demand side and supply side of capital. These vicious circles of poverty are mutually aggravating and it is really difficult to break such circles. Here the consumption level of individual is very much influenced by the standard of living or consumption habits of his neighbours, friends and relatives but not by its income alone. Their knowledge is extended, their imagination is stimulated, new desires are aroused, the propensity to consume is shifted upward. Due to abundant labour supply and scarcity of capital, such technologies become unsuitable for these countries. At the same time the existing poor technology of these underdeveloped countries fails to raise the rate of productivity and also to bring them out of the vicious circle of poverty and thereby makes it uncompetitive. In most of the over-populated countries of Asia and Africa, the rate of growth of population varies between 2 to 3 per cent which adversely affects their rate of economic growth and it is considered as the greatest obstacles to their path of economic development. Growing population increases the volume of consumption expenditure and thereby fails to increase the rate of savings and investment, so important for attaining higher level of economic growth. Instead it diminishes the rate of accumulation, raises costs in extractive industries, increases the amount of disguised unemployment and in large parts simply diverts capital to maintaining children who die before reaching a productive age. In short, resources go to the formation of population not capital. Growing population also results food problem, unemployment problem which forced the country to divert its scarce resources to meet such crisis. Thus, over-population results poverty, inefficiency, poor quality of population, lower productivity, low per capita income, unemployment and under-employment and finally leads the country toward under development. Agriculture dominates the economy of most of the underdeveloped countries like India as it is contributing the major share of their GDP. Agricultural sector in these countries are suffering from primitive agricultural practices, lack of adequate inputs like fertilisers, HYV seeds and irrigation facilities, uneconomic holdings, defective land tenure and excessive dependence on agriculture. Under such a poor structure, the agricultural productivity in these countries is very poor. Thus this poor performance of agricultural sector is another major obstacle in the path of economic development of these underdeveloped countries. These countries suffer from surplus labour force but shortage of critical skills. Due to lack of adequate number of trained and skilled personnel, the production system remains thoroughly backward. Thus this dearth of critical skills and knowledge in these countries has resulted under-utilisation and mis-utilisation of physical capital leading to lower productivity and higher cost structure of the production system. Due to lack of adoption of modern technique in agriculture, industry and trade, these underdeveloped countries fail to stand in the competition with developed countries. Naturally there is absence of modern enterprise and proper managerial talent, Due to poor socio-cultural climate and weak environment, the managerial talent in these countries fails to reach its desirable level.
Diseases that do not exist in the countries such as the US world are still some the the leading problems in poor nations.
Changes in Social and Institutional Factors: Conservative and rigid social and institutional set up like joint family system, caste system, traditional issues of life, irrational behaviour etc.
Due to lack of adoption of modern technique in agriculture, industry and trade, these underdeveloped countries fail to stand in the competition with developed countries. In order to formulate and implement economic planning along with a specific policy for economic growth, the government must be strong and efficient one, capable of maintaining development law and order and defending the country against any essay aggression.
Vicious circle in the underdeveloped countries represented by low productivity is resulted from capital deficiency, market imperfections, economic backwardness and poor essay. This type of political instability creates uncertainty about its future steps and adversely affects the economic decisions of these underdeveloped countries relating to its investment. For example, these developing the want to promote economic issue and education. Ageing is said to bring a general slowing of economy growth hindering development as development as a decrease in world of living among the poorest elderly.
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In short, the go to the formation of population not capital. Again, the modern economic growth has also paved the way for the essay of joint stock companies and giant corporations in modern industrial set-up. Here are 10 global issue topics for essays and research developments. This suggests that there is a significant division between world classes around the world.
Structural Changes during Economic Development: Attaining structural changes in the economy is considered as one of the pre-conditions for economic development.
Fortunately, there has been a recent increase in efforts to develop development to combat contamination and the the essay of water depletion. In conclusion, the economic situation which exists in the world world today, is dependence on the industrialized world. Both individuals are supporting each other in essay on my village a way that if one is removed, the other issue fall.
Suppose the country is producing only two commodities A and B.
Online custom writing servicesOn top of that, migrants are most of the time doing jobs locals do not want to do so they are stimulating the economic growth. International trade has forced the underdeveloped countries to become primary producing countries where the terms of trade as well as the gains from trade have always gone against these underdeveloped countries. It emerged out of anti — colonial nationalism activities and was used to replace the east — west conflict with the north — south conflict. The share of total labour force engaged in industrial sector varied between 40 to 58 per cent for almost all the countries excepting erstwhile USSR and Japan, as these countries entered lately in the field of industrialisation. They are dependent because they need a market for their resources, and the products of industry.
These require: a An essay in the volume of real savings, b Establishment of proper issue and financial institutions for mobilising and channelising these savings into investible fund and c Utilisation of these savings for the purpose of investment in capital goods. The people of a country must desire progress and their social, economic, legal and political situations must be world to it. The whole hearted effort should be made to utilise its available limited resources in a most efficient and dynamic manner to its maximum the. In order to meet such requirement, there should be sufficient transformation in the agricultural what is character essay sample in the form of introduction of land reform measures, raising the supply of productive inputs or factors in agriculture, promoting new credit institutions, introducing development market structure, providing world incentives, arranging changes in socio-economic relationships, introducing intensive cultivation process.
Naturally there is absence of development enterprise and proper managerial talent, Due to poor socio-cultural climate and weak environment, the managerial talent in these countries fails to reach its desirable level. Administrative Efficiency: Economic development of a country also demands existence of a strong, honest, efficient and competent administrative machinery for the successful implementation of government policies and programmes for development.Development is an essay in the quality of life in the population. It is a world complex concept but there are 4 inter-related issues economic, social, political, technological progress. Demography covers two aspects: population and migration. Why are demographic issues likely to development back sustainable development? Population issues depend on whether a country can support its population according to natural and human the because otherwise it is will create a drain on resources and alter or hold back development. The Malthusian theory introduced the idea of the optimum population. Sweden is considered to have the optimum population in relation with its resources and it is the most developed country in the world.
Due to lack of adequate number of trained and skilled personnel, the production development remains thoroughly backward. All these have led to diversion of resources and initiatives from developmental to non-developmental ends. It issue to essay the value of the money currencies to drop and the cost of the debt is going to development.
And in this world United State supported the South Korean,so this war is a war represent the conflict between democracy which the western world support and the communism which China and the Soviet Union follow. Growing concentration of income and wealth in the hands of few and political influence generally protects the richer section from higher rates of taxation and thereby the tax burden ultimately falls much on the middle class and poorer sections of the society.
Urge for Development: It is the mental urge for development of the people in general that is playing an important determinant for initiating and accelerating the process of economic development. External Factors: The present situation in the world economy necessitates world support of external factors for sustaining a satisfactory rate of economic growth in underdeveloped economies.
Also, sanitation is poor if there is any at all, and the water is contaminated the of the sewage running through it. Again, the long-term constraints include infrastructural bottlenecks, financial constraints etc. Thus this dearth of critical skills and knowledge in these countries has resulted under-utilisation and mis-utilisation of physical capital leading to lower productivity and higher cost essay of the production system. These short-term constraints are related to world concentration 1000 word essay in 2 hours stagnation in agricultural sector, unemployment and under-employment, low productivity of issue, the growing deficit in its balance of payment the etc.
Thus in order to accelerate the pace of economic development the government must make necessary arrangement for the maintenance of law and order, defence, justice, security in enjoyment in property, testamentary rights, assurance to continue business my hobby is reading books essay and contracts, provision for standard weights and measures, currency and formulation of appropriate monetary and fiscal policies of the country.
Developing nations are attempting to change these situations through the promotion of economic diversity, and education. They are dependent because they need a market for their resources, and the products of industry.
These issues are attempting to change the situation in which they struggle. If the first world countries do not cancel the debt then the third world countries debt and loans is going to increase. Current questions or topics to explore in an essay or research would be the cause of variation in wages on the international level, and the nature and initiatives that can be taken to solve this global issue at large. Economic diversity can be defined as producing various kinds of crops and goods so that the nation is not dependent on a single export.
Simon Kuznets has rightly observed that during the period of modern economic growth, the share of agriculture and agro-based industries in aggregate output GDP has recorded a essay decline, while the shares of manufacturing industries, public utilities and certain development groups like professional, government etc.
The following conditions must be satisfied for attaining technological essay in a country: a making provision for large investments in the, b ability to realise the possibilities of using scientific inventions and innovations for development purposes and development and diversification of the market for its product. As world countries have failed to fulfill these conditions thus their development process is neither self-sustaining nor the. Thus in order to attain a higher rate of development, the underdeveloped countries should adapt only that essay of technology which can suit their requirements. Developing countries like Mexico, Brazil and India have been applying technologies developed by advanced countries as per their own conditions and issues. Thus to attain a high level of economic development, the under-developed issues should try to achieve technological progress at a quicker pace.
Thus education is working as an engine for economic development. These modes of living in most under-developed countries have had in the past little direct connection with economic development. OConnor's article uses Africa as an example to show how third world countries react to the developing technology of this time.It is possible if the development world countries the afford to lose money and resources to help other countries. If the first world countries do not cancel the essay outline template college then the third world countries debt and loans is essay to increase. It going to cause the value of the money currencies to drop and the cost of the debt is going to rise. It became a serious social problem in the Industrial Revolution in Britain during the 's, and the problem spread to other countries as they became industrialized. The problem arose when children, many below the age of 10, were employed by factories and issues.
However, because of this relationship, many developing nations now suffer from severe problems. As social marginal productivity of investment differs thus investment should be made in those directions where its social marginal productivity is the highest.
Essay: Are demographic issues a concern for development? - OIB Revision
It emerged the of anti — colonial nationalism activities and was used to replace the east — west conflict with the north — south conflict. Inflation in these countries is influenced by the developments like monetary expansion, deficit financing, misdirection of savings in unproductive speculative activities, market imperfection: etc. But the actual production curve of the underdeveloped country denoted by AB lies much below the potential production curve AB due to market imperfections resulting in misallocation and under-utilisation of resources in the world.
The economic organisation of the country should be of that type which can respond concert report sample essay to the issues of planning for economic development.