Course Content
DEVELOPMENT ECONOMICS
DEVELOPMENT ECONOMICS
0/4
Development Economics: A Theoretical Overview
What do you mean by development
ECONOMIC GROWTH V/S DEVELOPMENT
ECONOMIC GROWTH V/S ECONOMIC DEVELOPMENT
ECONOMIC DEVELOPMENT : ITS MEARURING WAYS
Economic development is a process of development of Underdeveloped Countries
0/3
ECONOMIC DEVELOPMENT : ITS MEASURING WAYS
Economic Development-its measuring ways
00:01:00
2
MEASUREMENT OF ECONOMIC GROWTH
Meaning of Economic Growth (Short Definition): Economic growth refers to the increase in the production of goods and services in an economy over a specific period, typically measured by the rise in a country’s Gross Domestic Product (GDP) or Gross National Product (GNP). It indicates the expansion of an economy’s capacity to produce and consume. Measurement of Economic Growth (Detailed Explanation): Economic growth is measured using various indicators and methods. The most commonly used metrics are: 1. Gross Domestic Product (GDP): Definition: GDP is the total monetary value of all finished goods and services produced within a country’s borders during a specific period (usually quarterly or annually). Types of GDP Measurements: Nominal GDP: Measures GDP at current market prices without adjusting for inflation. Real GDP: Adjusts nominal GDP for inflation to reflect the true growth in output. Per Capita GDP: Divides GDP by the population to measure the average income per person, indicating living standards. 2. Gross National Product (GNP): Definition: GNP includes the value of goods and services produced by a country’s residents, regardless of whether the production takes place within or outside the country’s borders. Formula: GNP=GDP +Net income from abroadtext{GNP} = text{GDP} + text{Net income from abroad}GNP=GDP +Net income from abroad. 3. Growth Rate of GDP: Definition: The annual percentage change in GDP over time, which shows the rate at which the economy is growing. Formula: GDP Growth Rate=(GDP in Current Period−GDP in Previous Period GDP in Previous Period)×100text{GDP Growth Rate} = left(frac{text{GDP in Current Period} – text{GDP in Previous Period}}{text{GDP in Previous Period}}right) times 100GDP Growth Rate=(GDP in Previous Period GDP in Current Period−GDP in Previous Period)×100. 4. Productivity Measures: Definition: Measures growth in output per unit of labor or capital, indicating how efficiently resources are being utilized. Example: Labor Productivity = Output / Hours Worked. 5. Other Indicators: Industrial Production Index (IPI): Measures output in industrial sectors. Employment Rates: Indicates economic expansion if job creation aligns with growth. Consumption and Investment Trends: Higher consumer spending and investment reflect economic growth. Why GDP is the Most Common Measure: Comprehensive: Captures all goods and services within an economy. Comparable: Allows for easy comparison across countries and time periods. Widely Accepted: Used by governments, international organizations, and researchers. Limitations of GDP as a Measure of Growth: Ignores Distribution: GDP does not reflect income inequality. Non-Market Activities: Excludes unpaid labor and informal economy activities. Environmental Costs: Fails to account for resource depletion and pollution. Quality of Life: GDP growth doesn’t necessarily indicate improved well-being or happiness. For a holistic understanding, other metrics like the Human Development Index (HDI) or Green GDP are often used alongside GDP to measure economic progress.
0/1
MEASUREMENT OF ECONOMIC GROWTH
ECONOMIC WELFARE
Economic Welfare is a term related with Economic Development where key indicator are defining the major purpose i.e. whether economic development must be done with economic welfare or not
0/1
ECONOMIC WELFARE
PER CAPITA INCOME MEASUREMENT ( DEVELOPMENT ECONOMICS )
This topic relates to measurement of per capita income , total national income and total population
0/1
PER CAPITA INCOME MEASUREMENT
PHYSICAL QUALITY OF LIFE INDEX
This topic relates to Modern methods of measuring economic development like PQLI and HDI , we shall discuss them both
0/3
Physical Quality of Life Index
HUMAN DEVELOPMENT INDEX (HDI)
BEST METHOD OF MEASUREMENT WHETHER PQLI or HDI
THEORIES OF POPULATION
This topic includes the various theories related to Population in which Malthusian theory is the basic concept . with the passage of time , various economists have given different theories . that are included in this
0/10
MALTHUSIAN THEORY OF POPULATION
Neo-Malthusianism Theory of Population
Optimum Population Theory
The Demographic Transition Theory of Population
Marxist Theory of Population
Boserup’s Theory of Population
Under Population Theory of Population
Carrying Capacity Theory of Population
Population Momentum Theory
Overpopulation and Resource Scarcity Theory of Population
CAPITAL FORMATION IN DEVELOPMENT PROCESS
Capital formation is a critical concept in development economics, emphasizing the accumulation of capital assets to foster economic growth and development.
0/1
CAPITAL FORMATION
DISGUISED UNEMPLOYMENT THEORIES
Disguised unemployment occurs when more people are employed in a sector than are actually needed to sustain its output, meaning the marginal productivity of the excess labour is zero or close to zero
0/4
Nurksey’s Theory of Disguised Unemployment
Lewis Model of Disguised Unemployment
AMARTYA SEN’ S VIEWS DISGUISED UNEMPLOYMENT
Do Saving Potentials are the results of Disguised Unemployment ?
LEWIS MODEL OF UNLIMITED SUPPLY OF LABOUR
the Lewis model remains an essential tool for analysing the dynamics of economic development in dual-sector economies.
0/2
Lewis Model with Unlimited Supply of Labour
00:00
https://youtu.be/PxA6RE3d0t8?si=Q5gSTjD0K7Rsuv1c
DUALISM
The topic dualism includes the co-existence of modern sector with traditional sector , developed countries with underdeveloped countries , labour intensive techniques sector with capital intensive techniques sector
0/3
Dualism : Meaning & Features
SOCIAL DUALISM
TECHNOLOGICAL DUALISM THEORY
05:42
Big Push Theory
this theory explains the investment in all sectors of the economy
0/1
BIG PUSH THEORY
Leibenstein’ s Critical Minimum Efforts Theory
This theory explains the investment in few sectors of the economy and by the process of investment all other sectors shall also develop
0/1
Leibenstein’ s Critical Minimum Efforts Theory
BALANCED GROWTH THEORY
Balanced Growth theory is a collection of views of various economists like Prof. Nurksey , Lewis , Arthur Young , Stovasky and Rosenstein Rodan . this concepts explains the investment process in all sectors of the economy and its impact on various sectors .
0/1
Balanced Growth Model
UNBALANCED GROWTH THEORY
This theory relates unbalancing the economy by investing in either social overhead capital sector or direct productivity sector . which shall automatically develop the another sector and increase in National income , productivity in all sectors and economic development .
0/1
Unbalanced Growth Theory
ROSTOW’S STAGES OF ECONOMIC GROWTH
this topic relates the development phases of every countries whether developed or underdeveloped . he describes five stages of economic growth process .
0/1
Rostow’s Stages of Economic Growth
Classical Model of Growth
The classical growth model emphasizes economic growth through capital accumulation, labor, and natural resources, highlighting diminishing returns and constraints from fixed resources. Technological progress offsets these limits, enhancing productivity. Developed by economists like Adam Smith and Malthus, the model underscores structural factors influencing growth and informs sustainable development strategies.
0/1
CLASSICAL MODEL OF GROWTH
HARROD MODAR MODEL OF GROWTH
The Harrod-Domar Model explains economic growth based on savings and investment. Growth depends on the savings rate ( 𝑠 s) and the capital-output ratio ( 𝑘 k), which measures investment efficiency. The growth rate ( 𝑔 g) is given by 𝑔 = 𝑠 𝑘 g= k s ​ , meaning higher savings and lower 𝑘 k lead to faster growth. The model highlights the importance of savings and efficient investment for sustained growth but assumes a fixed relationship between capital and output, ignoring factors like technology, human capital, and institutions. It’s particularly relevant for understanding why developing countries struggle with low growth due to insufficient savings and inefficient use of resources.
0/1
Harrod-Domar Model of Growth
ECONOMIC PLANNING
Economic planning in development economics is a strategic process where governments set goals and allocate resources to address challenges like poverty, unemployment, and inequality. It prioritizes sectors such as industrialization, agriculture, and infrastructure while focusing on sustainable development, self-reliance, and balanced regional growth. Through targeted interventions, planning aims to accelerate economic growth, reduce disparities, and create jobs. Challenges include resource constraints, inefficient implementation, and external shocks. Successful planning relies on effective governance, public participation, and international cooperation. Countries like South Korea and China showcase how comprehensive planning can transform economies, making it a crucial tool for sustainable and inclusive development.
0/1
ECONOMIC PLANNING
PRICE MECHANISM IN ECONOMIC PLANNING
The price mechanism is the process by which prices are determined in a market economy through the interaction of supply and demand. It acts as a signal for both producers and consumers, guiding the allocation of resources efficiently. In economic planning, governments may intervene in the price mechanism through price controls, subsidies, or taxes to achieve specific developmental goals such as economic growth, income redistribution, and sustainability. While the price mechanism is effective in ensuring resource allocation, challenges like market failures, inflation, and unequal distribution may require government intervention to maintain stability and equity in developing economies.
0/1
price mechanism in economic planning
CHOICE OF TECHNIQUE
The choice of technique refers to the decision-making process regarding the type of technology or production methods to be adopted in a developing economy. This choice often involves a trade-off between capital-intensive and labor-intensive techniques.
0/1
CHOICE OF TECHNIQUE
Course Completion
So , Guys this course completes with different topics related to Development Economics . and their explanations. so if you guys require any further topic to be expand with kindly drop a message .Hope you enjoyed this. Thanks
Protected: DEVELOPMENT ECONOMICS

Under population refers to a demographic situation where the population size is insufficient to fully utilize the available resources, maintain a robust labour force, or support sustained economic growth. Unlike overpopulation, which poses challenges of resource scarcity, under population creates issues such as economic stagnation, labour shortages, and an increased dependency ratio due to aging populations. This phenomenon is particularly relevant in many developed countries today, where declining birth rates and aging societies are reshaping demographic and economic landscapes.

Core Idea of Under population

  1. Population Decline and Resource Underutilization:
    • A declining population often results in the underutilization of natural and economic resources. With fewer people to work the land, operate industries, and consume goods, resources remain idle, diminishing their economic value.
  2. Labour Shortages:
    • A reduced working-age population leads to significant labour shortages in key industries, impacting productivity and economic growth. For example, sectors such as healthcare, manufacturing, and technology struggle to find adequate personnel in underpopulated regions.
  3. Aging Populations and Dependency Ratios:
    • Under population is often accompanied by aging populations, where a larger proportion of the population is elderly. This results in higher dependency ratios, placing a financial burden on the working-age population to support pensions, healthcare, and social services for retirees.
  4. Economic Stagnation:
    • With fewer workers and consumers, economic activity slows down. Reduced demand for goods and services hampers innovation, investment, and overall economic progress.

Implications of Under population                        

  1. Policy Interventions:
    • Governments in underpopulated regions often implement policies to counteract declining populations. These include:
      • Encouraging higher fertility rates through financial incentives, parental leave, and childcare support.
      • Promoting immigration to offset labour shortages and demographic imbalances.
      • Investing in automation and technology to mitigate the impact of a reduced labour force.
  2. Social and Economic Adjustments:
    • Societies adapt to under population through increased participation of women and older individuals in the workforce.
    • Reforms in pension systems and healthcare are implemented to ensure sustainability in the face of an aging population.
  3. Urbanization and Infrastructure:
    • Declining populations can lead to urban decay, as cities shrink and infrastructure is underutilized. Governments may focus on revitalizing urban areas to attract residents and businesses.
  4. Global Impacts:
    • Under population in one region can have ripple effects on global trade and economic interdependence. Countries reliant on exports to underpopulated regions may face reduced demand.

Examples of Under population

  1. Japan:
    • Japan exemplifies the challenges of under population, with one of the world’s lowest fertility rates and a rapidly aging population. Labour shortages, economic stagnation, and increased healthcare costs are significant concerns.
    • The government has implemented policies such as subsidized childcare, financial incentives for families, and efforts to integrate more women into the workforce.
  2. European Countries:
    • Many European nations, including Italy, Germany, and Spain, face similar challenges due to low birth rates. These countries experience shrinking populations, leading to labour shortages and declining economic growth.
    • Immigration policies have been introduced to attract skilled workers from other regions, addressing demographic and economic challenges.
  3. Scandinavian Countries:
    • Countries like Sweden and Norway have proactively addressed under population through generous parental leave policies, subsidized childcare, and family-friendly workplace practices. These measures have partially mitigated the effects of population decline.
  4. Russia:
    • Russia has faced significant population decline due to low birth rates and high mortality rates. The government has implemented programs such as cash incentives for having children and housing subsidies to encourage population growth.

Criticisms and Challenges       

  1. Effectiveness of Pro-Natalist Policies:
    • Critics argue that policies aimed at increasing fertility rates often have limited success, as social and economic factors influencing family size are complex and deeply ingrained.
  2. Immigration Policies:
    • While immigration can offset labour shortages, it may lead to social and political tensions, especially in regions where cultural integration is challenging.
  3. Economic and Environmental Trade-Offs:
    • Encouraging population growth can strain resources and environmental sustainability if not managed carefully.
  4. Technological Solutions:
    • Relying on automation and artificial intelligence to address labour shortages may not fully compensate for the social and economic contributions of a larger human population.

Reconciling Under population with Sustainable Development

  1. Balancing Population Growth and Sustainability:
    • Policymakers must ensure that efforts to address under population align with environmental and social sustainability goals.
  2. Innovative Workforce Solutions:
    • Encouraging lifelong learning and up skilling programs can help older individuals remain active contributors  to the economy.
  3. Global Cooperation:
    • Addressing under population requires international collaboration to manage migration flows, share technological advancements, and promote equitable economic development.

Conclusion

Theories of under population highlight the multifaceted challenges posed by declining populations, particularly in developed countries. As nations grapple with aging societies, labour shortages, and economic stagnation, innovative policies and global cooperation are essential. By addressing demographic shifts through a combination of pro-natalist policies, immigration, and sustainable development strategies, societies can mitigate the adverse effects of under population while ensuring long-term prosperity. Understanding and addressing these challenges will be critical for shaping a sustainable and equitable future.

 

Previous
Next