Assignment 1 =Question No: 34 = Economic development of Developing countries?

Economic Development Of Developing Countries

(Assignment No. - 1)

First I would like to clarify the terms “Economic development” and “Developing countries”. Then we will see Economic development of Developing countries with respect to our nation - India.

Economic development

It is the overall development of people and its environment. i.e the social well being of people.

Economic development refers to the sustained, concerted effort of policymakers and community to promote the standard of living and economic health in a specific area. Economic Development is Development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives.

Economic development differs from economic growth. Whereas economic development is a policy intervention endeavor with aims of economic and social well-being of people, economic growth is a phenomenon of market productivity and rise in GDP. (Definition From Wikipedia)

The University Of Iowa’s Center For International Finance And Development states that:

“'Economic development' is a term that economists, politicians, and others have used frequently in the 20th century. The concept, however, has been in existence in the West for centuries. Modernization, Westernization, and especially Industrialization are other terms people have used when discussing economic development.”

Developing Countries

Developing countries are the countries which are on the path of being developed, and which have not yet fully demonstrated the signs of a developed country.

Developing countries are in general countries which have not achieved a significant degree of industrialization relative to their populations, and which have, in most cases a medium to low standard of living. There is a strong correlation between low income and high population growth.

Developing Countries include Our Nation – India, Afghanistan, Brazil, Sri Lanka, Egypt, Kenya etc.

About 85%of the world's population lives in developing countries.

What is it ? - Economic Development of Developing Countries.

Economic development in these countries would mean economic development in the area of agriculture, Industrial output, Infrastructure, environment, health, safety, literacy, Services, Banking and finance.

Economic Development Of India

Few Facts:

In the late 2000s, India's growth has reached 7.5%, which will double the average income in a decade. Analysts say that if India pushed more fundamental market reforms, it could sustain the rate and even reach the government's 2011 target of 10%. States have large responsibilities over their economies. The annualized 1999-2008 growth rates for Gujarat (9.6%), Haryana (9.1%), or Delhi (8.9%) were significantly higher than for Bihar (5.1%), Uttar Pradesh (4.4%), or Madhya Pradesh (6.5%). India is the eleventh-largest economy in the world and the fourth largest by purchasing power parity adjusted exchange rates.

The Decisive Factors In India

• Agriculture

• Industrial Output

• Services
  

• Banking and Finance

Issues in India concerning Economic development

• Regulation, public sector, corruption
• Employment
• Environmental degradation
  

Conclusion

India is growing very well in terms of GDP but unless this surplus revenue generated is redistributed and invested well, essential development goals will not be realized. We can all contribute towards the developmental process in our own ways. Citizens can pay taxes and make donations (of time and money) to worthy causes. Academics and students can generate data on the state of the economy at the micro-level and share it as open-source instead of trying to sell it. NGOs can implement developmental projects. Firms can directly create employment and income and indirectly, through investment in socially responsible initiatives, improve the world as well as their own reputation. Finally, the State and Charitable Foundations can act to re-distribute income and allocate funds to areas which are not profitable for entry by firms. Thus, each economic sector has a role to play in the development process and the outcome will be the shared responsibility of all.

References:

Few Texts above are quoted from different authors.

Economic development in developed and developing countries, University of Iowa's Center for International Finance and Development.

Government Of India – Finance Ministry Of India: Developing the rural India, Economic growth of India.

India in Business- Official website for Investment and Trade in India

Facts and Figures from Economic survey of India 2007: Policy Brief. OECD.

Shyama V. Ramani, Economic Development in India (Research Paper).

Submitted To :

Mr. Gurdeepak Singh

(Professor)

Submitted By :

Jyotin David

MBA (A) - 1st Sem