Dr. Md.
Sujahangir Kabir Sarkar
PhD (Malaysia), Post-doc (Malaysia, Japan)
Professor
Department of Economics and Sociology
Patuakhali Science and Technology University
Dumki 8602-Patuakhali, Bangladesh
Email: [email protected] [email protected]
Website:
http://pstu.ac.bd/teachers/msk-sarkar
https://www.researchgate.net/profile/Md_Sujahangir_Kabir_Sarkar
https://scholar.google.com.my/citations?hl=en&user=-
pvO5zcAAAAJ&view_op=list_works
Course Title: Development Economics
Course Code: AES326
What we shall discuss and learn from today’s lecture?
What is development?
What is growth?
Economic growth vs economic development
What is underdevelopment?
Characteristics of underdevelopment?
Country classification
What is development?
Development is a process that creates growth, progress, positive change or the addition of
physical, economic, environmental, social and demographic components which iroves quality
of life.
Economic Development
For economists, development indicates the improvement of quality of life in the economy,
which might be seen in accordance with the availability of many variables including income,
education and health facilities, positive social and environmental changes.
Growth
Growth means an increase of something (for example, size, number, value, or strength, production,
profit of firm or company) over a period of time. It is also defined as the quantitative or physical
change of something over a specified period of time compared to another time.
Economic growth
Economic growth is an increase in the production of economic goods and services, compared from
one period of time to another. An increase in economic variables like income over a period of time is
economic growth. The most important aspect of growth is its quantifiable.
Annual growth of Remittance =
[(current year remittance−previous year remittance)/Previous year remittance] X 100
Economic growth Economic development
definition Economic growth is an increase in the Economic development indicates the
production of economic goods and services, improvement of quality of life through
compared from one period of time to another. positive changes of many indicators.
Scope It is a narrow concept It is a broader concept compared to economic
growth
measurement It is measured by GDP, real GDP, GNP. It is measured by quality of life index, HDI,
happiness index
Reflection It reflect quantitative changes for example the It reflect both quantitative and qualitative
increase of national income changes for example quality of life and
happiness increase.
Process Rapid process Slow process
Possible Economic growth is possible without economic Economic development is not possible
development without economic growth
Country Generally developing country use it Generally developed country use it
Indicators Single indicator Multiple indicators
Underdevelopment
Underdevelopment refers to the low level of development characterized by low real per capita income, high poverty, lower
level of literacy, low life expectancy and underutilisation of resources, lack of facilities for the citizens, existence of social
and environmental problems etc.
Characteristics of underdevelopment?
1. Low Level of Income
2. Mass Poverty
3. Lack of Capital Formation
4. Heavy Population Pressure
5. Agricultural Backwardness
6. Unemployment Problem
7. Unexploited Natural Resources
8. Shortage of Technology and Skills
9. Lack of Infrastructural Development
10. Lack of Industrialization
11. Lack of proper market
12. Mass Illiteracy
13. Poor Socio-Economic Condition
14. Inefficient Administration
Country classification
Country categories GNI per capita Example of some countries
Low-income countries/ $1,005 or less Benin, Burkina Faso, Burundi, Democratic Republic
economies of the Congo, Eritrea, Gambia, Guinea, Liberia,
Mozambique, Myanmar, Nepal, Rwanda, Sierra
Leone, Somalia
Lower middle-income $1,006 - $3,955 Bangladesh, Bhutan, Cambodia, India, Indonesia,
economies Viet Nam, Philippines, Pakistan, Sri Lanka, Morocco,
Nigeria, Senegal, Sudan,
Upper middle-income $3,956 - $12,235 Algeria, Belarus, Bosnia and Herzegovina, Brazil,
economies China, Colombia, Costa Rica, Cuba, Iran, Jamaica,
Jordan, Lebanon, Lithuania, Malaysia, Mexico,
Russia, Serbia, South Africa, Thailand, Tunisia,
Turkey
High-income economies $12,236 or more Singapore, Qatar, France, Germany, Italy, United
Kingdom, Belgium, Denmark, Sweden, Canada,
Japan, United States, Australia
Country classification Country example Comment
Least developed Benin, Burkina Faso, Burundi, Democratic Republic of Low income and
countries (LDCs) the Congo, Eritrea, Gambia, Guinea, Liberia, lower middle-
Mozambique, Myanmar, Nepal, Rwanda, Sierra Leone, income countries
Somalia
Developing countries Bangladesh (fulfilled condition for eligibility), Bhutan,Lower middle
Cambodia, India, Indonesia, Philippines, Pakistan, Sri income and upper
Lanka, Ethiopia, Algeria, Egypt, Kenya Mexico, Brazil middle-income
countries
Countries in Transition Albania, Bosnia and Herzegovina, Montenegro, Serbia, Upper middle-
Armenia, Azerbaijan, Belarus, Georgia, Russia, Ukraine, income countries
Kazakhstan, Tajikistan, Turkmenistan, Uzbekistan
Developed countries France, Germany, Italy, United Kingdom, Belgium, High income
Denmark, Finland, Sweden, Canada, Japan, United countries
States, Australia, New Zealand
