THE CHALLENGE

OF ECONOMIC
DEVELOPMENT
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DESIRED LEARNING
OBJECTIVES
The students must be able to
comprehend: Aspects of a developing Country.
What are the four elements of
development and how they interact in
the process of economic development?
What
strategies
of
economic
development are available to be
employed successfully?
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ASPECTS OF A DEVELOPING
COUNTRY
What is a developing country?
The most important characteristic of a
developing country is low per capita Income.
Other aspects are: Poor health and low literacy.
Extensive malnutrition and high birth rate.
Weak governments and market institutions.
Widespread inequities, corruption and civil
strife.
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Little capital to enhance productivity.

THE FOUR ELEMENTS IN

DEVELOPMENT

What are the four elements in

development?
Human resources
Natural resources
Capital resources
Technology and innovations
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HUMAN RESOURCES
Escape Route: Raise incomes, living
standards, health and education facilities,
hope for the future; birth rates would drop.
Raise the Human Capital by controlling
disease, improving nutrition, education,
health, etc and developing the HR.

NATURAL RESOURCES
The most valuable natural resource is
arable land hence its productive use can
change the fate of many poor countries.
Ownership rights of the arable land.
Oil, gas, coal and other mineral
resources.
But, abundance of natural resources has
not always been equally beneficial for the
masses of poor countries. Ex?
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Nigeria, Congo, Pakistan, etc.

CAPITAL RESOURCES
For capital accumulation, countries must
abstain from current consumption and
opt more for investment.
But, poor countries are already at the
subsistence level.
One must invest at least 20% of output in
capital formation.
Moreover, before acquiring sophisticated
capital, the country must first build their
infrastructure
on
which
modern
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economies depend.

TECHNOLOGY AND INNOVATIONS

Technology, innovation and managerial
expertise are three main power houses of
modern economy.
Poor countries lack in all these areas.
Imitating or transferring technology.
Entrepreneurship and Innovation. Poor
countries badly need the people, who
can: Open new businesses.
Take risks and adopt new technologies .
Produce
managerial
expertise
to
businesses.

run
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