INTRODUCTION TO DEVELOPMENT ECONOMICS
Kita ang discrepancy, ang difference between the rich and poor. Those that are black are rich countries. Gray are
less developed countries.
Questions that should be answered in this subject:
It is important to study the familiarity in econ, it is a profession that addresses these kinds of problems about
eco progress and development, hunger and poverty. We will have deeper understanding with development of
countries. Sino baa ng countries na highly developed, like SK, Jap and Singapore and others remain poor like
Bangladesh, African countries.
For example, we can visit experiences of developed countries to achieve development. We go back to past
records and historical data.
Because all of the eco theories are developed for the developed countries or western world, if these theories are
used in our countries, are they compatible with developing countries?
Do we need to look at experiences of developed countries to become highly developed countries? Are there
interdependence?
- Economics that belong to G8 (The Group of 8) are the top 8 countries – eight highly industrialized
nations — France, Germany, Italy, the United Kingdom, Japan, the United States, Canada, and
Russia
- Subsistence economy are highly dependent in manual labor and tradition and customs, mostly found in
Africa.
- In the study of Development Economics, we should understand traditional economics, political
economics (it is important to consider this when it comes to advancing the countries’ developments.)
and development economics
- Over the years, the definition evolved
GDP-
Y= output
C = consumption
I – investment
G – gov expending
Nx – net export (ex-im)
GNP
GNP/Population
Purchasing power parity – measures local to foreign currency
Big Mac Index – development of country is measured on how much a burger costs in their country.
FYI, the biggest economy right now is China in terms of GPD and PPP.
- Because accounting system is not yet established in developing countries
- It is not reflected in GNP and GDP measure and most of high developed are consumptions
- Highly volatile and exchange rates sa developing countries
- May mga imperfections yung mga markets sa developing countries, marami ang nagconclude na hindi
pwedeng gawing basis ang GDP and GNP growth rates
Dapat kapag lumalago ang GNP and GDP dapat may multiplier effects
Hindi exclusive sa econ side ang development, include the non-economic like social indicators
Dapat kapag umuunlad, kasabay ang pagbaba ng poverty, improvement of equality and provide more jobs
to people.
If economy grows dapat bumababa ung mga nasa taas.
Noble Prize winner in econ
1. It is the true development
2. Meaning freedom that a person has in his functioning, to perform activities, as a person performs dapat
nandun ang support ng government
To have a real development, dapat ang individual ay gawin ang high value niya para hindi masayang ang
available resources and time, at mas nagiging productive sya. There would be an increase in productive
capacity of a country.
It is about a person’s capability of functioning.
If we rely on GN and GD it is not reliable dahil sa 5 sources
- Persons are different in attitude, character and culture so dapat ibagay yung development sa culture
and tradition
- In case of PH, we have 7,700 islands and our topography is archipelagic and mountainous but at the
same time communication is hard because we have different language
- Iba ung types of development na dapat iadopt ng mga developing countries
- On average number of people ng family in ph, we prefer large families.
- It is all about improving the quality of life.
Capital – in econ, are good that can be used to produce another goods, physical, like machines, building and
others
Labour – human resources that provide skills, education and training
Natural resources – extraction of cast resources
Tech – dapat may advancements and innovation
Markets – labor goods and financial
Example – study of effect og stock market and banking sectors in development significant ang role inla sa growth
and development
Sa non-econ
Cultural – pahalagahan ung culture
Systems example – freedom to own property para maging mas interpreneural ung mga gusting maging business
persons
Support government programs, without support, it will become unsuccessful, if you want to contribute, dapat
isupport ang gov programs.
Dapatnagmamanifest nakikita nararamdaman, dapat positive everyday
- Sustenance
- Self esteem
- Freedom
So, alinsunod sa core values of development ang objectives of development
- Sustenance
- To have self-esteem ung tao
- Freedom to choose
We send people kasi kailangan magsacrifice ung OFWs dahil hindi Malaki ang opportunityavailable sa ating
bansa.
Example
Effect - Basis lang kasi ang economic factors
Growth – measured by GNP and GDP
These are models that can be basis to help countries in the process of development.
Lewis two - Assumption na ang rural section ay may surplus labor kaya naaabsorb sila sa mga urban sections
Land, food, shelter, clothing
PH is a agri country because there are still sectors na highly agricultural; nagkakaroon na tayo ng shifting from
agri to manu. If you want to be familiar, visit DA or department of Agri.
Consumption driven ang PH kaya yung resources hindi nagagamit to increase productive capacity.
High population – we can do something to atleast slow down the growth of population in the country
Not only in Ph but also in other countries
These are factors that contribute to lack
Present admin, the priority is BBB, infrastructure
May interdependence ang countries and promotes free trade
3.8 below poverty line
Tulad ng sa mga news ngayon, Du30 recognized the problem and it will be an agenda to their cabinet meeting,
ang undernourishment.
Halos lahat ng napag-usapan ay makikita sa definition ng economic development.
