Chapter 1 - Summary - Economic Development

 

  Introducing Economic Development: A Global Perspective    Michael P. Todaro and Stephen C. Smith, Economic Development, 11th 11 th Edition, Ch 1. 

1.1 How The Other Half Live: Every day, people around the world living with the condition that completely different from one another. Half the world's population live all-sufficient, while others are deprived of life on planet Earth with a population of about 7 billion people.40% of the population live on Earth with a per capita income of under $ 2 per day, one of the characteristics of absolute poverty , a situation in which a person can not meet me et the minimum standard of living. Comparison of the different parts of the world below can explain the situation of unequal development.   In North America, we can see that most of the families who live there have a nuclear family consisting of 4 people. They have a decent de cent livelihood with an annual income of about $ 50,0 50,000. 00. In addition, a source of entertainment there are relatively abundant. This is one of the characteristics of families living in a rich country on Earth. In the South Asian region, we ccan an see that the members of the nuclear family there are 8 people or more. They live in an atmosphere that is hard with an annual income of about $ 250 to $ 300. The only consolation is simply a religious spiritual activities.  In Latin America, the development runs imbalanced. Many elite houses standing in the city, with the state all-sufficient.While in other areas, relatively opposite on the beach, a  favela (slum) that looks rickety, seedy, and squashed.  In the eastern region of Africa, poverty is spread evenly. Income per capita is very little and completely lack. Family there to produce a variety of needs to be used by itself (also called subsistence economy ). Construction of a new discourse, namely the building of access roads to the outside world.  If you see the above facts, so we asked what should be done to raise the degree of development in order to become better. We should be able to trigger progress in developing countries . Only,  p roses progress experienced exp erienced by developing d eveloping countries (developing (developin g countries) can not realistically  be analyzed a nalyzed without considering the role of developed countries that assist or inhibit, directly or or indirectly, the advancement process.  1.2  Economics and Development Studies  The study of development economics is a branch of economics developed by Adam Smith as an "expert economics of development" of the first, as the publication of his book Wealth of  Nations in 1776. Then the science is starting to spread to Africa, Asia, and Latin America began about five the past decade. Science itself from time to time have developed analytical and methodological identity in order to examine the success of the development that has been done.   There are two (2) the nature of the economics of development, namely:  1. Traditional Economics 

 

 

Centered on the cheapest and most efficient allocation over all the scarce resources and utilizing optimal growth resources from-time-to-time in order to deliver the results the output of goods and services as much as possible. Science also discusses the world capitalist economy as markets,  prices, consumer equilibrium, and others. The assumption of this science is "rationality", materialistic orientation and individualistic nature. 

2.  Economics Politics  Basically, this science discusses the link between political science and economics, with a focus on the role of power in economic decision making. 

Development economics includes all elements of economics, politics, and culture, which are required in support of structural and institutional transformation of the whole society in order to generate a series of economic progress which is really useful (through a streamlined process) for the population at large. The purpose of development economics is to help us understand the conditions of developing countries for the sake of convenience in the improvement of living standards for the majority of the world's population . Basically, economics is a social science. Science is sticking to the value at which he is footing in determining good or bad.Thus, the pillars of economic science is an understanding of the basic ideas (premise) is called the ethical and normative premises value  ( value premises ) of what is desired or undesired.  The economy as a social system should not be regarded as a simple economics. Science and economic systems need to be analyzed anal yzed and placed in the context of the overall social system of the country and in the global context / international. We should pay more attention to non-economic variables-varianel on which the social and economic research. The failure of development in the Third World due to the neglect of non-economic variables are actually very important to be studied. In the whole process of development, both domestically and internationally, the role and importance of values, attitudes, andinstitutional factors ( values, attitude, and institution ) should still be considered and analyzed carefully.  1.3 What Do We Mean By Development ?  In the traditional economic sense, development is defined as the achievement achi evement of growth in per capita income so that the state can develop a high output faster than population growth. Then use the size of the Gross National Income (GNI) to measure how much the quantity of goods and services available for consumption and investment community. In ancient times, the agricultural sector is penbangunan. often used as In an its indicator of the success of the development, in addition industry development, Gross Domestic Product (GDP) began totobesector used and as a measure of the success of development in recent years.  However, it is not always the size of the economic growth can be used as reference for development success. In the 1960s, many developing countries have achieved economic growth target, but failed to reduce poverty are rampant. In short, in the 1970s, economists began to concentrate its efforts on human development by way of eradicating poverty, unemployment, and a growing number of gaps. "Redistribution for Growth" has become a common slogan at the t he time.  In the years 1980-1990, the situation actually worsened as a result of the declining value of GNI in the negative direction in the developing world, while the government faces external debt accumulate, resulting in reduced budgets for economic and social activities. In the 2000s, the growth increased rapidly, but poverty po verty is still a major obstacle to development. From this, it can be understood that the development is a multidimensional problem to include the changes in the social

 

structure, social behavior, and national institutions, as well as increased economic growth, as well as reduction in poverty and inequality.  Development has three (3) core values , including:  1.  Ability to Meet Basic Materials.  2.  Pride.  3.  Freedom from Slavery.

 

Development is the physical reality and state of mind. The development should have three objectives , namely:  . 1. Increasing the availability and memperuas distribution of staple goods, such as food, health, and  protection.  2.  Increasing the degree of life, including increased income, better education, and employment.   3.  Extending the range of economic and social choices.  

1.4  The Millennium Development Goals  The Millennium Development Goals (MDGs) is an accelerated development agreement made in the USA by 189 countries in September 2000. The main objective of this program is to eliminate  poverty. More fully the objectives are as follows:  1.   2. 3.  4.  5.  6.  7.  8. 

 

Eradicate extreme poverty and hunger.   Achieving universal primary education. Promoting gender equality and women's defending.   Reduce child mortality.   Improve maternal health  Combat HIV / AIDS, malaria, and other othe r diseases.  Ensuring sustainable development based environment.  Develop a global partnership for development.  Each destination has its own specific targets and expected all of these objectives have been achieved in 2015. 

1.5  Conclusion  Economic Development includes of traditional andof political From this statement, focus on the mechanics economiceconomics development economic,economy. social, and national agencies to make major changes in living standards and the degree of the poor in developing countries.  As a social science, economics related to the community and how to give them the means to develop them for the good.Obviously this is related to the value that has been adopted. The value of the building itself is the value of kindness (developing countries) and the bad (underdeveloped countries)  The central problem of modern economies include the traditional problem of what, why, and for whom goods and services are made. Then, at the national level, the problem develops into who makes the policy development and indeed who would benefit from the policy. In the end, at the international level, the problem will bekembang again on what country and what state groups that have great strength in implementing development? 

 

Program Millennium Development Goals will be a tonngak early history in the process of sustainable development.However, the program still needs readjustment since there is no program that has not been on target and plans that have been made previously.