JM GROUP 9

Why we need development?

From society aspect and infrastructures aspect.
Development from aspect of societies such as academic , level of skills , leadership skill ,
and also economic growth for the citizen or communities itself. This development are important
to build great country because to develop a good country we have to having a great citizen with
a good interpersonal skills , academic then their economic will develope parallel together .
After that, to have all this development it should start from the government . they have to
think how to tackle the citizen to make sure the citizen have all this development such as start
this from primary school as co curriculum and do this as a vision and mission for the school .
This development will lead the country to maintain peacefull and will increase the economic
growth itself.

Next , the development from infrastructure aspect such as canals, railroads, highways,
postal services, electricity lines, and telecommunications net- works that link to the rest of the
country and the world. We have to focus this because it is the basis of economic growth. The
importance of infrastructure for productivity, costs and economic growth is widely documented in
the literature (Aschauer, 1989; Gramlich, 1994; Nadiri and Mamuneas, 1994; Lynde and
Richmond, 1993; Easterly, 1993; Day and Zou, 1994; Holtz-Eakin and Schwartz, 1994; Ferreira
and Issler, 1995; . and also Infrastructure may also play a vital role in allowing specialisation in
production which is likely to be a key factor in promoting economic growth (Bougheas and
Demetriades, 1995).
Then , why we need the development from infrastructure aspect is by assuming that
infrastructure inuences transport costs; we view this as a natural mechanism through which
infrastructure might affect the volume of trade. In the positive theory of international trade,
transport costs were introduced to explain the distinction between traded and non-traded
commodities (Samuelson, 1 1954; Mundell, 1957).
To some extent, these costs might be expected to depend on geographical factors and
can, therefore, be treated as an exogenous variable. However, it is plausible to expect that they
would also depend inversely on the development of transport and telecommunications
infrastructure.

Development, in all aspects, is important for a country because it signifies progress and growth.
With development comes profit and learning, thus a stable economy is forseen.
Reference
1.Infrastructure, transport costs and trade
a b, c * Spiros Bougheas , Panicos O. Demetriades , Edgar L.W. Morgenroth aDivision of
Economics , Staffordshire University , Leek Road , Stoke on Trent , ST 42 DF , UK bThe
Business School , South Bank University , 1 0 3 Borough Road , London , SE 10 AA , UK
cDepartment of Economics , Keele University , Keele , ST 55 BG , UK
2.Entrepreneurial Social Infrastructure:
A Necessary Ingredient Author(s): Cornelia Butler Flora and Jan L. Flora Reviewed work(s):
Source: Annals of the American Academy of Political and Social Science, Vol. 529, Rural
America: Blueprint for Tomorrow (Sep., 1993), pp. 48-58