1. Discuss and illustrate the differences between economic development and economic growth.
The two economic terms might sound identical but they have noticeable differences.
Economic Development pertains to the holistic progress in the economy and over all societal
well-being of a certain country that requires a substantial period of time to achieve. Unlike
growth, economic development encompasses quality education, equitable rights and distribution,
excellent healthcare status, functional and productive facilities all over the country and even
improved standard of living of the citizens. As we can see, such development does not only focus
on the side of the economy but to the general condition of the nation. However, economic growth
which is actually a component of the former, relates to the progress in the economic status of a
particular country. It includes improved rate of production, decreasing unemployment rate,
increasing the income level per household and even allow people to maximize their lives. Such
growth over time once accumulated and sustained could lead to economic development.
2. “There is no economic growth without economic development” or “There is no economic
development without economic growth”. Which is correct? Defend.
According to professor Nick Drydakis, “Economic growth is important because it allows
prosperity to rise and more people to find jobs”. His assertion provides a stronghold that
economic development will not happen in the absence of economic growth. As in the case of
production capacity of a county which belongs to its economic growth, continuous and improved
production capacity over the long term will yield a significant result which in turns form part of
what we know as economic development. Such production could lead to higher national income
that would support both government and consumer spending and eventually improve the life of
the people through sufficient supply of commodities and meeting the needs of the people. Hence,
the needs of the society will be provided by the country alone which is an indicator of an
economic development.
3. Is the Philippines still an underdeveloped country? Why? Provide strong argument.
NO. As we can see, the economy of the Philippines had been improving from the last years
and decades. According to The World Bank, the poverty rate in the Philippines declined from
23.3% in 2015 to 18.1% in 2021. Such milestone clearly shows us that Philippines is acing with
other Asian countries in reaching development. In the Philippines, as a citizen, I can avail quality
education and not so good healthcare but the two criteria can bring the country to a definition of
being excluded from underdeveloped countries. However, this might make changes but with the
Philippines drive to development supported by a robust labor market continued reform and
recovery efforts there is no doubt that development can be achieved.
4. To what present stage of development of economic development does the Philippines belong?
Provide a strong argument, cite and provide examples.
Structural Transformation. In the Philippines, jobs and income were more extracted from the
agricultural sector but through development, the service and manufacturing sector revolutionized
the composition of the country’s GDP earning 61.22% in 2022 ([Link]). This firmly
support that the country is presently in this stage because a lot of its citizens work and earn in the
service and manufacturing sector. An example of that is the increasing number of manufacturing
facility all throughout the country which provides employment and the service sectors that offer
job opportunities.
5. To what present stage of economic growth (Rostow’s Model) does the Philippines belong?
Discuss, provide a strong argument, cite and provide examples.
Preconditions for take-off. Philippines had been improving from its structural development
and even investing more for roads, railways, and bridges that would produce a lot of benefits.
The Philippines is now also using its resources specially from the agriculture to manufacture
something and extract minerals available in the country to be sold, used or processed. Also, we
are fitted in this stage because there is a clear emergence of social elites that controls and own
large enterprises all over the country. Moreover, the Philippines are now making new ideas out
of its resources like the famous “kangkong chips” that are made out of “kangkong plants".
Assignment in Economic
Development
Submitted by: Marcos A. Bebita Jr.
BS in Accountancy 1
