write a model of the speech on the topic development of a country is that possible without reducing our skilled manpower
Answers
Explanation:
According to Maddison, “the raising of income levels is generally called economic growth in rich countries and in poor ones, it is called economic development.”
The processes of economic development should not only generate increased or enhanced means of production but it should also make room for equitable distribution of such resources. Thus by the term economic development we mean a process so as to raise the per capita output with a scope for equitable distribution.
Prof. Meier has rightly said, “We shall define economic development as the process whereby per capita income of a country increases over a long period of time.” Here the word “process” indicates long period changes related to changes in demand side as well as changes in factor supply.
Changes arising on the demand side are mostly related to consumers, tastes and preferences, distribution of income, size and composition of country’s population, and other organisational and institutional changes.
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On the other hand, changes arising on the factor supply are also related to—capital accumulation, discovery of new resources, introduction of new and more efficient production techniques, increase in size of population and organisational changes. Cause and consequences of economic development are mostly determined by the time path and velocity of these aforesaid changes.
Economic development, being a dynamic concept refers to the continuous increase in production over the changing time path. Secondly, attainment of economic development indicates increase in real per capita income over time. Here the real per capita income of a country simply indicates total money income adjusted to price level changes over time, i.e.
r = y/p where r = real income; y = money income and p = price level.
Thirdly, by the term economic development we mean continuous increase in the level of real national income over longer time period, covering a period, not less than 25 to 30 years.
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While explaining the distinction between economic development and economic growth, C.P Kindleberger observed, “Economic growth means more output and economic development implies both more output and changes in the technical and institutional arrangements, by which it is produced.”
As per this view, the term growth implies higher level of output as well as achievements in terms of increase in the volume of economic variables. Accordingly, Kindleberger further observed, “Growth involves focussing on height or weight, while development draws attention to the change in functional capacity.”
Although some economists have observed slight differences between economic development and economic growth but all these differences are imaginary and unreal and thus have little practical value. In this connection Prof. Arthur Lewis has rightly observed, “Most often we shall refer only to ‘Growth’ but occasionally, for the sake of variety to ‘Progress’ and ‘Development.’