Development economics is a branch of economics which deals with economic aspects of the development process in low income countries. Its focus is not only on methods of promoting economic development, economic growth and structural change but also on improving the potential for the mass of the population, for example, through health, education and workplace conditions, whether through public or private channels.
Development economics involves the creation of theories and methods that aid in the determination of policies and practices and can be implemented at either the domestic or international level. This may involve restructuring market incentives or using mathematical methods such as intertemporal optimization for project analysis, or it may involve a mixture of quantitative and qualitative methods.
Unlike in many other fields of economics, approaches in development economics may incorporate social and political factors to devise particular plans. Also unlike many other fields of economics, there is no consensus on what students should know. Different approaches may consider the factors that contribute to economic convergence or non-convergence across households, regions, and countries.
The earliest Western theory of development economics was mercantilism, which developed in the 17th century, paralleling the rise of the nation state. Earlier theories had given little attention to development. For example, scholasticism, the dominant school of thought during medieval feudalism, emphasized reconciliation with Christian theology and ethics, rather than development. The 16th- and 17th-century School of Salamanca, credited as the earliest modern school of economics, likewise did not address development specifically.
Major European nations in the 17th and 18th century all adopted mercantilist ideals to varying degrees, the influence only ebbing with the 18th-century development of physiocrats in France and classical economics in Britain. Mercantilism held that a nation's prosperity depended on its supply of capital, represented by bullion (gold, silver, and trade value) held by the state. It emphasised the maintenance of a high positive trade balance (maximising exports and minimising imports) as a means of accumulating this bullion. To achieve a positive trade balance, protectionist measures such as tariffs and subsidies to home industries were advocated. Mercantilist development theory also advocated colonialism.
Theorists most associated with mercantilism include Philipp von Hörnigk, who in his Austria Over All, If She Only Will of 1684 gave the only comprehensive statement of mercantilist theory, emphasizing production and an export-led economy. In France, mercantilist policy is most associated with 17th-century finance minister Jean-Baptiste Colbert, whose policies proved influential in later American development.
Following mercantilism was the related theory of economic nationalism, promulgated in the 19th century related to the development and industrialization of the United States and Germany, notably in the policies of the American System in America and the Zollverein (customs union) in Germany. A significant difference from mercantilism was the de-emphasis on colonies, in favor of a focus on domestic production.
The names most associated with 19th-century economic nationalism are the American Alexander Hamilton, the German-American Friedrich List, and the American Henry Clay. Hamilton's 1791 Report on Manufactures, his magnum opus, is the founding text of the American System, and drew from the mercantilist economies of Britain under Elizabeth I and France under Colbert. List's 1841 Das Nationale System der Politischen Ökonomie (translated into English as The National System of Political Economy), which emphasized stages of growth, proved influential in the US and Germany, and nationalist policies were pursued by politician Henry Clay, and later by Abraham Lincoln, under the influence of economist Henry Charles Carey.
Forms of economic nationalism and neomercantilism have also been key in Japan's development in the 19th and 20th centuries, and the more recent development of the Four Asian Tigers (Hong Kong, South Korea, Taiwan, and Singapore), and, most significantly, China.
Following Brexit and the 2016 United States presidential election, some experts have argued a new kind of "self-seeking capitalism" popularly known as Trumponomics could have a considerable impact on cross-border investment flows and long-term capital allocation
The origins of modern development economics are often traced to the need for, and likely problems with the industrialization of eastern Europe in the aftermath of World War II. The key authors are Paul Rosenstein-Rodan, Kurt Mandelbaum, Ragnar Nurkse, and Sir Hans Wolfgang Singer. Only after the war did economists turn their concerns towards Asia, Africa and Latin America. At the heart of these studies, by authors such as Simon Kuznets and W. Arthur Lewis was an analysis of not only economic growth but also structural transformation.
An early theory of development economics, the linear-stages-of-growth model was first formulated in the 1950s by W. W. Rostow in The Stages of Growth: A Non-Communist Manifesto, following work of Marx and List. This theory modifies Marx's stages theory of development and focuses on the accelerated accumulation of capital, through the utilization of both domestic and international savings as a means of spurring investment, as the primary means of promoting economic growth and, thus, development. The linear-stages-of-growth model posits that there are a series of five consecutive stages of development which all countries must go through during the process of development. These stages are "the traditional society, the pre-conditions for take-off, the take-off, the drive to maturity, and the age of high mass-consumption" Simple versions of the Harrod–Domar model provide a mathematical illustration of the argument that improved capital investment leads to greater economic growth.
Such theories have been criticized for not recognizing that, while necessary, capital accumulation is not a sufficient condition for development. That is to say that this early and simplistic theory failed to account for political, social and institutional obstacles to development. Furthermore, this theory was developed in the early years of the Cold War and was largely derived from the successes of the Marshall Plan. This has led to the major criticism that the theory assumes that the conditions found in developing countries are the same as those found in post-WWII Europe.
Structural-change theory deals with policies focused on changing the economic structures of developing countries from being composed primarily of subsistence agricultural practices to being a "more modern, more urbanized, and more industrially diverse manufacturing and service economy." There are two major forms of structural-change theory: W. Lewis' two-sector surplus model, which views agrarian societies as consisting of large amounts of surplus labor which can be utilized to spur the development of an urbanized industrial sector, and Hollis Chenery's patterns of development approach, which holds that different countries become wealthy via different trajectories. The pattern that a particular country will follow, in this framework, depends on its size and resources, and potentially other factors including its current income level and comparative advantages relative to other nations. Empirical analysis in this framework studies the "sequential process through which the economic, industrial and institutional structure of an underdeveloped economy is transformed over time to permit new industries to replace traditional agriculture as the engine of economic growth."
Structural-change approaches to development economics have faced criticism for their emphasis on urban development at the expense of rural development which can lead to a substantial rise in inequality between internal regions of a country. The two-sector surplus model, which was developed in the 1950s, has been further criticized for its underlying assumption that predominantly agrarian societies suffer from a surplus of labor. Actual empirical studies have shown that such labor surpluses are only seasonal and drawing such labor to urban areas can result in a collapse of the agricultural sector. The patterns of development approach has been criticized for lacking a theoretical framework.
International dependence theories gained prominence in the 1970s as a reaction to the failure of earlier theories to lead to widespread successes in international development. Unlike earlier theories, international dependence theories have their origins in developing countries and view obstacles to development as being primarily external in nature, rather than internal. These theories view developing countries as being economically and politically dependent on more powerful, developed countries which have an interest in maintaining their dominant position. There are three different, major formulations of international dependence theory: neocolonial dependence theory, the false-paradigm model, and the dualistic-dependence model. The first formulation of international dependence theory, neocolonial dependence theory, has its origins in Marxism and views the failure of many developing nations to undergo successful development as being the result of the historical development of the international capitalist system.
First gaining prominence with the rise of several conservative governments in the developed world during the 1980s, neoclassical theories represent a radical shift away from International Dependence Theories. Neoclassical theories argue that governments should not intervene in the economy; in other words, these theories are claiming that an unobstructed free market is the best means of inducing rapid and successful development. Competitive free markets unrestrained by excessive government regulation are seen as being able to naturally ensure that the allocation of resources occurs with the greatest efficiency possible and the economic growth is raised and stabilized.
It is important to note that there are several different approaches within the realm of neoclassical theory, each with subtle, but important, differences in their views regarding the extent to which the market should be left unregulated. These different takes on neoclassical theory are the free market approach, public-choice theory, and the market-friendly approach. Of the three, both the free-market approach and public-choice theory contend that the market should be totally free, meaning that any intervention by the government is necessarily bad. Public-choice theory is arguably the more radical of the two with its view, closely associated with libertarianism, that governments themselves are rarely good and therefore should be as minimal as possible.
Academic economists have given varied policy advice to governments of developing countries. See for example, Economy of Chile (Arnold Harberger), Economic history of Taiwan (Sho-Chieh Tsiang). Anne Krueger noted in 1996 that success and failure of policy recommendations worldwide had not consistently been incorporated into prevailing academic writings on trade and development.
The market-friendly approach, unlike the other two, is a more recent development and is often associated with the World Bank. This approach still advocates free markets but recognizes that there are many imperfections in the markets of many developing nations and thus argues that some government intervention is an effective means of fixing such imperfections.
Development economics also includes topics such as third world debt, and the functions of such organisations as the International Monetary Fund and World Bank. In fact, the majority of development economists are employed by, do consulting with, or receive funding from institutions like the IMF and the World Bank. Many such economists are interested in ways of promoting stable and sustainable growth in poor countries and areas, by promoting domestic self-reliance and education in some of the lowest income countries in the world. Where economic issues merge with social and political ones, it is referred to as development studies.
A growing body of research has been emerging among development economists since the very late 20th century focusing on interactions between ethnic diversity and economic development, particularly at the level of the nation-state. While most research looks at empirical economics at both the macro and the micro level, this field of study has a particularly heavy sociological approach. The more conservative branch of research focuses on tests for causality in the relationship between different levels of ethnic diversity and economic performance, while a smaller and more radical branch argues for the role of neoliberal economics in enhancing or causing ethnic conflict. Moreover, comparing these two theoretical approaches brings the issue of endogeneity (endogenicity) into questions. This remains a highly contested and uncertain field of research, as well as politically sensitive, largely due to its possible policy implications.
Much discussion among researchers centers around defining and measuring two key but related variables: ethnicity and diversity. It is debated whether ethnicity should be defined by culture, language, or religion. While conflicts in Rwanda were largely along tribal lines, Nigeria's string of conflicts is thought to be – at least to some degree – religiously based. Some have proposed that, as the saliency of these different ethnic variables tends to vary over time and across geography, research methodologies should vary according to the context. Somalia provides an interesting example. Due to the fact that about 85% of its population defined themselves as Somali, Somalia was considered to be a rather ethnically-homogeneous nation. However, civil war caused ethnicity (or ethnic affiliation) to be redefined according to clan groups.
There is also much discussion in academia concerning the creation of an index for "ethnic heterogeneity". Several indices have been proposed in order to model ethnic diversity (with regards to conflict). Easterly and Levine have proposed an ethno-linguistic fractionalization index defined as FRAC or ELF defined by:
where si is size of group i as a percentage of total population. The ELF index is a measure of the probability that two randomly chosen individuals belong to different ethno-linguistic groups. Other researchers have also applied this index to religious rather than ethno-linguistic groups. Though commonly used, Alesina and La Ferrara point out that the ELF index fails to account for the possibility that fewer large ethnic groups may result in greater inter-ethnic conflict than many small ethnic groups. More recently, researchers such as Montalvo and Reynal-Querol, have put forward the Q polarization index as a more appropriate measure of ethnic division. Based on a simplified adaptation of a polarization index developed by Esteban and Ray, the Q index is defined as
where si once again represents the size of group i as a percentage of total population, and is intended to capture the social distance between existing ethnic groups within an area.
Early researchers, such as Jonathan Pool, considered a concept dating back to the account of the Tower of Babel: that linguistic unity may allow for higher levels of development. While pointing out obvious oversimplifications and the subjectivity of definitions and data collection, Pool suggested that we had yet to see a robust economy emerge from a nation with a high degree of linguistic diversity. In his research Pool used the "size of the largest native-language community as a percentage of the population" as his measure of linguistic diversity. Not much later, however, Horowitz pointed out that both highly diverse and highly homogeneous societies exhibit less conflict than those in between. Similarly, Collier and Hoeffler provided evidence that both highly homogenous and highly heterogeneous societies exhibit lower risk of civil war, while societies that are more polarized are at greater risk. As a matter of fact, their research suggests that a society with only two ethnic groups is about 50% more likely to experience civil war than either of the two extremes. Nonetheless, Mauro points out that ethno-linguistic fractionalization is positively correlated with corruption, which in turn is negatively correlated with economic growth. Moreover, in a study on economic growth in African countries, Easterly and Levine find that linguistic fractionalization plays a significant role in reducing national income growth and in explaining poor policies. In addition, empirical research in the U.S., at the municipal level, has revealed that ethnic fractionalization (based on race) may be correlated with poor fiscal management and lower investments in public goods. Finally, more recent research would propose that ethno-linguistic fractionalization is indeed negatively correlated with economic growth while more polarized societies exhibit greater public consumption, lower levels of investment and more frequent civil wars.
Increasingly, attention is being drawn to the role of economics in spawning or cultivating ethnic conflict. Critics of earlier development theories, mentioned above, point out that “ethnicity” and ethnic conflict cannot be treated as exogenous variables. There is a body of literature which discusses how economic growth and development, particularly in the context of a globalizing world characterized by free trade, appears to be leading to the extinction and homogenization of languages. Manuel Castells asserts that the "widespread destructuring of organizations, delegitimation of institutions, fading away of major social movements, and ephemeral cultural expressions" which characterize globalization lead to a renewed search for meaning; one that is based on identity rather than on practices. Barber and Lewis argue that culturally-based movements of resistance have emerged as a reaction to the threat of modernization (perceived or actual) and neoliberal development.
On a different note, Chua suggests that ethnic conflict often results from the envy of the majority toward a wealthy minority which has benefited from trade in a neoliberal world. She argues that conflict is likely to erupt through political manipulation and the vilification of the minority. Prasch points out that, as economic growth often occurs in tandem with increased inequality, ethnic or religious organizations may be seen as both assistance and an outlet for the disadvantaged. However, empirical research by Piazza argues that economics and unequal development have little to do with social unrest in the form of terrorism. Rather, "more diverse societies, in terms of ethnic and religious demography, and political systems with large, complex, multiparty systems were more likely to experience terrorism than were more homogeneous states with few or no parties at the national level".
Violent conflict and economic development are deeply intertwined. Paul Collier describes how poor countries are more prone to civil conflict. The conflict lowers incomes catching countries in a "conflict trap." Violent conflict destroys physical capital (equipment and infrastructure), diverts valuable resources to military spending, discourages investment and disrupts exchange.
Recovery from civil conflict is very uncertain. Countries that maintain stability can experience a "peace dividend," through the rapid re-accumulation of physical capital (investment flows back to the recovering country because of the high return). However, successful recovery depends on the quality of legal system and the protection of private property. Investment is more productive in countries with higher quality institutions. Firms that experienced a civil war were more sensitive to the quality of the legal system that firm similar firms that had never been exposed to conflict.
Per capita Gross Domestic Product (GDP per head) is used by many developmental economists as an approximation of general national well-being. However, these measures are criticized as not measuring economic growth well enough, especially in countries where there is much economic activity that is not part of measured financial transactions (such as housekeeping and self-homebuilding), or where funding is not available for accurate measurements to be made publicly available for other economists to use in their studies (including private and institutional fraud, in some countries).
Even though per-capita GDP as measured can make economic well-being appear smaller than it really is in some developing countries, the discrepancy could be still bigger in a developed country where people may perform outside of financial transactions an even higher-value service than housekeeping or homebuilding as gifts or in their own households, such as counseling, lifestyle coaching, a more valuable home décor service, and time management. Even free choice can be considered to add value to lifestyles without necessarily increasing the financial transaction amounts.
More recent theories of Human Development have begun to see beyond purely financial measures of development, for example with measures such as medical care available, education, equality, and political freedom. One measure used is the Genuine Progress Indicator, which relates strongly to theories of distributive justice. Actual knowledge about what creates growth is largely unproven; however recent advances in econometrics and more accurate measurements in many countries is creating new knowledge by compensating for the effects of variables to determine probable causes out of merely correlational statistics.
Recent theories revolve around questions about what variables or inputs correlate or affect economic growth the most: elementary, secondary, or higher education, government policy stability, tariffs and subsidies, fair court systems, available infrastructure, availability of medical care, prenatal care and clean water, ease of entry and exit into trade, and equality of income distribution (for example, as indicated by the Gini coefficient), and how to advise governments about macroeconomic policies, which include all policies that affect the economy. Education enables countries to adapt the latest technology and creates an environment for new innovations.
The cause of limited growth and divergence in economic growth lies in the high rate of acceleration of technological change by a small number of developed countries. These countries' acceleration of technology was due to increased incentive structures for mass education which in turn created a framework for the population to create and adapt new innovations and methods. Furthermore, the content of their education was composed of secular schooling that resulted in higher productivity levels and modern economic growth.
Researchers at the Overseas Development Institute also highlight the importance of using economic growth to improve the human condition, raising people out of poverty and achieving the Millennium Development Goals. Despite research showing almost no relation between growth and the achievement of the goals 2 to 7 and statistics showing that during periods of growth poverty levels in some cases have actually risen (e.g. Uganda grew by 2.5% annually between 2000–2003, yet poverty levels rose by 3.8%), researchers at the ODI suggest growth is necessary, but that it must be equitable. This concept of inclusive growth is shared even by key world leaders such as former Secretary General Ban Ki-moon, who emphasises that:
Researchers at the ODI thus emphasise the need to ensure social protection is extended to allow universal access and that active policy measures are introduced to encourage the private sector to create new jobs as the economy grows (as opposed to jobless growth) and seek to employ people from disadvantaged groups.
Agricultural economics is an applied field of economics concerned with the application of economic theory in optimizing the production and distribution of food and fiber. Agricultural economics began as a branch of economics that specifically dealt with land usage, it focused on maximizing the crop yield while maintaining a good soil ecosystem. Throughout the 20th century the discipline expanded and the current scope of the discipline is much broader. Agricultural economics today includes a variety of applied areas, having considerable overlap with conventional economics. Agricultural economists have made substantial contributions to research in economics, econometrics, development economics, and environmental economics. Agricultural economics influences food policy, agricultural policy, and environmental policy.Bodily integrity
Bodily integrity is the inviolability of the physical body and emphasizes the importance of personal autonomy and the self-determination of human beings over their own bodies. In the field of human rights, violation of the bodily integrity of another is regarded as an unethical infringement, intrusive, and possibly criminal.Dependency theory
Dependency theory is the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former. It is a central contention of dependency theory that poor states are impoverished and rich ones enriched by the way poor states are integrated into the "world system".
The theory arose as a reaction to modernization theory, an earlier theory of development which held that all societies progress through similar stages of development, that today's underdeveloped areas are thus in a similar situation to that of today's developed areas at some time in the past, and that, therefore, the task of helping the underdeveloped areas out of poverty is to accelerate them along this supposed common path of development, by various means such as investment, technology transfers, and closer integration into the world market. Dependency theory rejected this view, arguing that underdeveloped countries are not merely primitive versions of developed countries, but have unique features and structures of their own; and, importantly, are in the situation of being the weaker members in a world market economy.Dependency theory no longer has many proponents as an overall theory, though some writers have argued for its continuing relevance as a conceptual orientation to the global division of wealth.Development studies
Development studies is a multidisciplinary branch of social science. Development studies is offered as a specialized master's degree in a number of reputed universities across the world, and, less commonly, as an undergraduate degree. It has grown in popularity as a subject of study since the early 1990s, and has been most widely taught and researched in the third world and in countries with a colonial history, such as the UK, where development studies originated. Students of development studies often choose careers in international organisations such as the United Nations, World Bank, non-governmental organisations (NGOs), media and journalism houses, private sector development consultancy firms, corporate social responsibility (CSR) bodies and research centers.Development theory
Development theory is a collection of theories about how desirable change in society is best achieved. Such theories draw on a variety of social science disciplines and approaches. In this article, multiple theories are discussed, as are recent developments with regard to these theories. Depending on which theory that is being looked at, there are different explanations to the process of development and their inequalitiesDual economy
A dual economy is the existence of two separate economic sectors within one country, divided by different levels of development, technology, and different patterns of demand. The concept was originally created by Julius Herman Boeke to describe the coexistence of modern and traditional economic sectors in a colonial economy.Dual economies are common in less developed countries, where one sector is geared to local needs and another to the global export market. Dual economies may exist within the same sector, for example a modern plantation or other commercial agricultural entity operating in the midst of traditional cropping systems. Sir Arthur Lewis used the concept of a dualistic economy as the basis of his labour supply theory of rural-urban migration. Lewis distinguished between a rural low-income subsistence sector with surplus population, and an expanding urban capitalist sector (see Dual-sector model). The urban economy absorbed labour from rural areas (holding down urban wages) until the rural surplus was exhausted.A World Bank comparison of sectoral growth in Côte d'Ivoire, Ghana and Zimbabwe since 1965 provided evidence against the existence of a basic dual economy model. The research implied that a positive link existed between growth in industry and growth in agriculture. The authors argued that for maximum economic growth, policymakers should have focused on agriculture and services as well as industrial development.Economic development
Economic development is the process in which a nation is being improved in the sector of the economic, political, and social well-being of its people. The term has been used frequently by economists, politicians, and others in the 20th and 21st centuries. The concept, however, has been in existence in the West for centuries. "Modernization, "westernization", and especially "industrialization" are other terms often used while discussing economic development. Economic development has a direct relationship with the environment and environmental issues. Economic development is very often confused with industrial development, even in some academic sources.
Whereas economic development is a policy intervention endeavor with aims of improving the economic and social well-being of people, economic growth is a phenomenon of market productivity and rise in GDP. Consequently, as economist Amartya Sen points out, "economic growth is one aspect of the process of economic development".Economic nationalism
Economic nationalism, or economic patriotism, economic populism, refers to an ideology that favors state interventionism over other market mechanisms, with policies such as domestic control of the economy, labor, and capital formation, even if this requires the imposition of tariffs and other restrictions on the movement of labor, goods and capital. In many cases, economic nationalists oppose globalization or at least question the benefits of unrestricted free trade. Economic nationalism is disputed as the doctrine of mercantilism, and as such favors protectionism.Esther Duflo
Esther Duflo, FBA (French: [dyflo]; born 25 October 1972) is a French American economist, Co-Founder and Director of the Abdul Latif Jameel Poverty Action Lab (J-PAL), and Professor of Poverty Alleviation and Development Economics at the Massachusetts Institute of Technology. Duflo is an NBER Research Associate, serves on the board of the Bureau for Research and Economic Analysis of Development (BREAD), and is Director of the Center for Economic and Policy Research's development economics program.Her research focuses on microeconomic issues in developing countries, including household behavior, education, access to finance, health, and policy evaluation. Together with Abhijit Banerjee, Dean Karlan, Michael Kremer, John A. List, and Sendhil Mullainathan, she has been a driving force in advancing field experiments as an important methodology to discover causal relationships in economics.Human Development Index
The Human Development Index (HDI) is a statistic composite index of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development. A country scores a higher HDI when the lifespan is higher, the education level is higher, and the gross national income GNI (PPP) per capita is higher. It was developed by Pakistani economist Mahbub ul Haq, with help from Gustav Ranis of Yale University and Meghnad Desai of the London School of Economics, and was further used to measure a country's development by the United Nations Development Program (UNDP)'s Human Development Report Office.The 2010 Human Development Report introduced an Inequality-adjusted Human Development Index (IHDI). While the simple HDI remains useful, it stated that "the IHDI is the actual level of human development (accounting for inequality)", and "the HDI can be viewed as an index of 'potential' human development (or the maximum IHDI that could be achieved if there were no inequality)". The index does not take into account several factors, such as the net wealth per capita or the relative quality of goods in a country. This situation tends to lower the ranking for some of the most advanced countries, such as the G7 members and others.The index is based on the human development approach, developed by Amartya Sen, often framed in terms of whether people are able to "be" and "do" desirable things in life. Examples include—Being: well fed, sheltered, healthy; Doings: work, education, voting, participating in community life. The freedom of choice is central—someone choosing to be hungry (as during a religious fast) is quite different from someone who is hungry because they cannot afford to buy food, or because the country is in a famine.Human development (economics)
Human development is the science that seeks to understand how and why the people of all ages and circumstances change or remain the same over time. It involves studies of the human condition with its core being the capability approach. The inequality adjusted Human Development Index is used as a way of measuring actual progress in human development by the United Nations. It is an alternative approach to a single focus on economic growth, and focused more on social justice, as a way of understanding progress.
The term human development may be defined as an expansion of human capabilities, a widening of choices, 'an enhancement of freedom, and a fulfilment of human rights. This also simply means developing mentally, socially through growing and experiencing things in your life and learning new things.
The United Nations Development Programme defines human development as "the process of enlarging people's choices," said choices allowing them to "lead a long and healthy life, to be educated, to enjoy a decent standard of living," as well as "political freedom, other guaranteed human rights and various ingredients of self-respect."Development concerns expanding the choices people have, to lead lives that they value, and improving the human condition so that people have the chance to lead full lives. Thus, human development is about much more than economic growth, which is only a means of enlarging people's choices. Fundamental to enlarging these choices is building human capabilities—the range of things that people can do or be in life. Capabilities are "the substantive freedoms [a person] enjoys to lead the kind of life [they have] reason to value". Human development disperses the concentration of the distribution of goods and services underprivileged people need and center its ideas on human decisions. By investing in people, we enable growth and empower people to pursue many different life paths, thus developing human capabilities. The most basic capabilities for human development are to lead long and healthy lives, be knowledgeable (i.e., educated), have access to resources and social services needed for a decent standard of living, and be able to participate in the life of the community. Without these, many choices are not available, and many opportunities in life remain inaccessible.An abstract illustration of human capability is a bicycle. A bicycle itself is a resource—a mode of transportation. If the person who owns a bicycle is unable to ride it (due to a lack of balance or knowledge), the bicycle is useless to her or him as transportation and loses its functioning. If a person owns a bicycle and has the ability to ride a bicycle, they have the capability of riding to a friend's house, a local store, or a great number of other places. This capability would (presumably) increase their value of life and expand their choices. A person, therefore, needs both resources and the ability to use them to pursue their capabilities. This is one example of how different resources or skills can contribute to human capability. This way of looking at development, often forgotten in the immediate concern with accumulating commodities and financial wealth, is not new. Philosophers, economists, and political leaders emphasized human well being as the purpose, or the end, of development. As Aristotle said in ancient Greece, "Wealth is evidently not the good we are seeking, for it is merely useful for the sake of something else."IZA Institute of Labor Economics
The IZA - Institute of Labor Economics (German: Forschungsinstitut zur Zukunft der Arbeit), until 2016 referred to as the Institute of the Study of Labor (IZA), is a private, independent economic research institute and academic network focused on the analysis of global labor markets and headquartered in Bonn, Germany.Journal of Development Economics
The Journal of Development Economics is a bimonthly peer-reviewed academic journal published by Elsevier. It was established in 1974 and is considered the top field journal in development economics.Its editor-in-chief from 1985 to 2003 was Pranab Bardhan, who has been the longest-serving JDE editor to date. He followed T.N. Srinivasan, and Lance Taylor as Editors since the journal was established in 1974. He was succeeded by Mark Rosenzweig (2003-2009) and Maitreesh Ghatak (2009-2015). The current editor-in-chief is Andrew Foster, who started in 2016.Master of Economics
The Master of Economics is a postgraduate master's degree in economics (M.Econ., M.Ec.; also MS in Economics, MA in Economics, MCom in Economics) comprising training in economic theory, econometrics and / or applied economics.Planning Commission (Pakistan)
The Planning Commission (denoted as PC) is a financial and public policy development institution of the Government of Pakistan. The Commission comes under Ministry of Planning, Development and Reforms. The Planning Commission undertakes research studies and state policy development initiatives for the growth of national economy and the expansion of the public and state infrastructure of the country in tandem with the Ministry of Finance (MoF).
Since 1952, the commission have had a major influence and role in formulating the highly centralized and planned five-year plans for the national economy, for most of the 20th century in Pakistan. Although the five-year plans were replaced by Medium Term Development Framework, the commission still played an influential and central role in the development of the programme. Furthermore, the Public Sector Development Programmes (PSDP) also placed under the domain of the planning commission. The commission's authoritative figures includes a Chairman who is the Prime Minister, assisted by the deputy chairman, and a science advisor.
Other officials of the commissions includes Planning and Development Secretary of Pakistan; chief economist; Director of the Pakistan Institute of Development Economics; Executive Director of Policy Implementation and Monitoring (PIM); and members for Social Sectors, Science and Technology, Energy, Infrastructure, and Food and Agriculture.As of 2019, the Chairman is Prime Minister of Pakistan, Mr. Imran Khan and the current Deputy Chairman is Khusro Bakhtiar who is also the Federal Minister for Planning, Development and Reforms.Structuralist economics
Structuralist economics is an approach to economics that emphasizes the importance of taking into account structural features (typically) when undertaking economic analysis. The approach originated with the work of the Economic Commission for Latin America (ECLA or CEPAL) and is primarily associated with its director Raúl Prebisch and Brazilian economist Celso Furtado. Prebisch began with arguments that economic inequality and distorted development was an inherent structural feature of the global system exchange. As such, early structuralist models emphasised both internal and external disequilibria arising from the productive structure and its interactions with the dependent relationship developing countries had with the developed world. Prebisch himself helped provide the rationale for the idea of Import substitution industrialization, in the wake of the Great Depression and World War II. The alleged declining terms of trade of the developing countries, the Singer–Prebisch hypothesis, played a key role in this.T. N. Srinivasan
T. N. Srinivasan, in full Thirukodikaval Nilakanta Srinivasan (March 27, 1933 – November 11, 2018), was an Indian economist who since 1980 had taught and worked in the United States. He was the Emeritus Samuel C. Park, Jr. Professor of Economics at Yale University. He was formerly chairman of the department of economics. He was a special adviser to the Development Research Center at the World Bank from 1977 to 1980, and has taught at numerous academic institutions over the past four decades, including MIT, Stanford University, and the Indian Statistical Institute. In 2007, he received a Padma Bhushan decoration from the President of India for his contributions to Literature and Education.He earned his Ph.D. in Economics (1962) from Yale University, M.A. in Mathematics (1954) from University of Madras, India and B.A. (Honors) Mathematics 1953 from University of Madras, India. He did his Professional Training in Statistics (1953-1955) at Indian Statistical Institute, Calcutta. He has made important contributions in the fields of economic growth and development economics, and international trade. He had been very active in policy debates concerning India. He was founding co-editor of the Journal of Development Economics.
He was visiting fellow at the Center for Research on Economic Development and Policy Reform, Stanford University; fellow of the Econometric Society, American Academy of Arts and Sciences, and American Philosophical Society; and a foreign associate of the National Academy of Sciences of the USA. He has authored a prolific collection of books and articles on econometrics, world trade, and developing country economics.United Nations Department of Economic and Social Affairs
The United Nations Department of Economic and Social Affairs (UN DESA) is part of the United Nations Secretariat and is responsible for the follow-up to major United Nations Summits and Conferences, as well as services to the United Nations Economic and Social Council and the Second and Third Committees of the United Nations General Assembly. UN DESA assists countries around the world in agenda-setting and decision-making with the goal of meeting their economic, social and environmental challenges. It supports international cooperation to promote sustainable development for all, having as a foundation the 2030 Agenda for Sustainable Development and the 17 Sustainable Development Goals (SDGs) as adopted by the UN General Assembly on 25 September 2015. In providing a broad range of analytical products, policy advice, and technical assistance, UN DESA effectively translates global commitments in the economic, social and environmental spheres into national policies and actions and continues to play a key role in monitoring progress towards internationally agreed-upon development goals. It is also a member of the United Nations Development Group.United Nations Economic Commission for Latin America and the Caribbean
The United Nations Economic Commission for Latin America and the Caribbean, known as ECLAC, UNECLAC or in Spanish and Portuguese CEPAL, is a United Nations regional commission to encourage economic cooperation. ECLAC includes 46 member States (20 in Latin America, 13 in the Caribbean and 13 from outside the region), and 13 associate members which are various non-independent territories, associated island countries and a commonwealth in the Caribbean. ECLAC publishes statistics covering the countries of the region and makes cooperative agreements with nonprofit institutions. ECLAC's headquarters is in Santiago, Chile.
ECLAC was established in 1948 as the UN Economic Commission for Latin America, or UNECLA. In 1984, a resolution was passed to include the countries of the Caribbean in the name. It reports to the UN Economic and Social Council (ECOSOC).