7.1 

Economic Development

 For economists development can mean different things. Most definitions relate to the ongoing raising of living standards* and the improved ability of the country, through its own efforts, to produce more goods and services over time.

Definitions usually include improving medical and education services.

*What one person can afford to buy.

7.1

World Bank

 The World Bank defines countries as low income, middle income and high income.*

 Lower income countries can borrow more finance for development. The WB considers low and mid income nations to be "developing" and high income countries are regarded as "developed".

*This helps it to make decisions about lending money and supporting development projects in specific countries.

7.1

Human Development Index (HDI)

7.1

Development as Freedom

'Amartya Sen believes development should be seen as a process of expanding freedom.

Freedom (then development) requires removal of poverty, tyranny, lack of economic opportunities, social deprivation and neglect of public services.*

*In his book Development as Freedom, contray to accepted views, economic growth on it's own does not bring about development. He showed that people in the relatively poor South Indian state of Kerala, in which there are plentiful public services (including a public distribution system providing subsidised food), had a higher life expectancy than African Americans living in poverty in the US, a country with a much higher GDP per head. He believes by providing freedoms, development is most likely to occur.

7.1

Inequality