CONTENT:
1.0 What is economic development
2.0 Differences between economic growth and development
3.0 Characteristics of underdeveloped economy
4.0 Factors which influence economic development
5.0 Problems of economic development in Nigeria
1.0 What is economic development?
Economic development maybe defined as the process whereby the level of national production i.e. national income or per capita income increases over a period of time. Economic development is not the same thing as industrialization and national development. It’s purpose of the people in an economy, while industrialization is part of the process or characteristics of economic development. With economic development, there are structural transformations in the different sectors of the economy as well as general improvements in various areas of economic activity leading to increased economic welfare of the citizens.
ECONOMIC GROWTH
Economic growth is the process by which national income or output is increased. An economy is said to be growing if there is a sustained increase in the actual output of goods and services per head. Economic growth implies more output per head as a result of more input and more efficiency. Economic growth is a stepping stone to economic development. Without economic growth it will be difficult for a country to attain economic development.
2.0 Differences between economic growth and development
1.Welfare
There is a greater emphasis on the increase in output and less emphasis on economic welfare in the case of economic growth while economic development laid more emphasis on improvements in the general welfare as a result of more equitable distribution of the increased output of goods and services among individuals.
2.Distribution of facilities
Economic growth is mainly concerned with the growth of income, while economic development level as all spheres of economic activity and emphases a more even distribution of facilities between various areas.
3.Employment
Economic growth can take place under conditions of mass unemployment while economic development implies a reduction in the level of
4. Unemployment.
There must be a meaningful increase in real income before we can talk of economic growth, whereas economic development can be achieved by a fairer distribution of existing goods, services and amenities, even if there is no substantial increase in output.
3.0 Characteristics or features of under developed economy
1.Low per capita income
The low level of income per head of the population is due to the generally low level of productivity which results in low national income or low gross domestic product.
2.Use of crude technology
The use of crude technology give rises to low productivity. The extent of industrialization is still limited. The use of modern implements in agriculture such as tractors and harvesters is limited.
3.There is high level of unemployment and underdevelopment
In underdeveloped countries many factors of production are either idle or not fully engaged in production. So many people are left unemployed. The available job opportunities are insufficient for all those who wish to work.
4.High level of illiteracy
The high level of illiteracy is partly due to widespread poverty. Many parents cannot afford the cost of education for themselves or their children.
5.Low standard of living
There is low standard of living in under developed economy. Ther is great disparity in income levels among the population. There are few people who are very rich while the masses are poor.
4.0 FACTORS WHICH INFLUENCE ECONOMIC DEVELOPMENT
1.Technological development
The level of technology should be developed in order to increase economic development.
2.Encouragement of savings and investments
Both individuals and firms should be encouraged to invest and save in the economy. Capital or fund, provision of some infrastructural facilities can encourage savings and investments.
3.Promotion of industrialization
There should be concrete plan to promote rapid industrialization as this form the bedrock for any economic development.
4.Provision of capital
The provision of capital through the establishment of financial institutions. Agricultural Development Bank could be encouraged to make loans to investors.
5.Political stability
Political stability will lead to the direction of efforts towards projects which will help to stimulate economic development.
6.Infrastructural facilities
Provision of economic and social infrastructural facilities such as electricity, transportation network and water supply.
5.0 Problems of economic development
Lack of industrialization leads to low economic development of any nation
1. Inadequate capital base
There is inadequate capital to execute the various development projects which would lead to structural transformations within the economy.
2.Shortage of skilled and technologically trained manpower
There is tendency for deficiency in technical knowhow in many West African countries. The relative scarcity of indigenous skilled labour is due to the high level of illiteracy which exists.
3.Inadequate economic planning and management
Most of the developing countries do not have adequate development plan and this hinders economic development. In some cases, the full costs and implications of economic projects have not been fully weighed before they are embarked upon. At times, projects are started only to be abandoned.
4.Administrative bottlenecks:
Certain government policies tend to hinder economic development projects in economically unviable areas and delays in giving approval to prospective businessmen for the establishment of manufacturing industries.
