GNP

▪only indicates the total market value of final

goods and services produced by the citizens
while

PCI
▪shows the income of the citizens per head
 Thus, in a
society where
100 10 have income there is a great
100 ₱ 1000 disparity in the
distribution of
income and
wealth, the use
10 of GNP as a
₱ 1000 100 ₱ 1000
measurement
Per Capita GNP is ₱ 10 90 have no income of economic
growth is
has an income of misleading.
₱ 10
Under such condition, it is not really true that the
economy is improving.

Todaro and Seers

▪Development economist
▪suggested the elimination of GNP as a yardstick
▪they proposed to measure economic growth in
term of poverty, inequality, and unemployment.
 Reduction of Elimination of
Poverty
Measure the condition of poverty

▪better approach in determining the economic

growth of a country
The government program should direct its main
resources in improving the quality of life of the
poorest of the poor.

No nation can ever hope to remain strong and

stable, if most of the people are suffering from the
agonies of poverty.
 Eradication of Inequality

▪Inequality does not only mean differences of

income and wealth but also social, political, and
educational disparities among the members of
society.

▪The products of inequality have been created by

religion, culture, political power, and education.
▪ To remove inequality , there should be
institutional reforms in economic, social, and
political areas.
▪Every member of society should have equal
opportunities in jobs , education, public health,
government service, and other fields of human
endeavors.
▪Social equalizers
- agrarian reform - taxation
- cooperative
▪Most of the children of the poor do not even
finish elementary education.
▪Many of them die of hunger and malnutrition.
▪In employment, it is still the whom you know that
counts.

▪This practice have become permanent fixture in

our culture.
▪Good program for the poor is the CARP program.
▪If this is properly implemented, the poor have
chance to improve their economic conditions
through their own efforts.
 Minimizing Unemployment
The problem of unemployment and
underemployment are critical in less developed
countries.
Millions of their human resources who are willing
to work cannot find jobs.
In the Philippines, many young college graduates
cannot find jobs.
According to Myrdal, the problems of
unemployment and undereployment have been
the principal cause of poverty in Southeast Asia.

Employment is a major source of income among

the poor.

Jobless people are likely to be involved on social

crimes
The proliferation of illegal economic activities is a
reflection of the lack of decent and legitimate
employment opportunities.

Some poor countries

- have wrong priorities in their economic
development program.
- insist on building projects which bolster their
political and military strengths.
- precious scare financial resources he been often
used for consumption of luxuries.
Other countries
- prefer big project which are capital-intensive
- Many noted development economists proposed
the creation of labor-intensive industries, especially
in the rural areas.
- Provide more employments to the idle rural
population , their own raw materials can be utilized
in the manufacture of products.

Such projects do not create jobs for the jobless,

but also incomes for the suppliers of raw
materials.
The real product of development is the people. A
country is only as progressive as its people. Its
pervading institutions, attitudes and values reflect the
quality of its people.

It is most important of focus development programs on

the development of people or human resource. People
are the true key factors in improving the conditions of
their own nations.

Freedom and dignity- higher needs which people

naturally crave for as human beings.
 The Freedom of Choice
People like to be free in choosing their foods,
clothes, house, and other personal needs and
aspirations.
Man should be free to choose his job, to put up his
business or to travel.
Freedoms are conditioned by cultural traditions
and customs.
 Freedom and Poverty

Freedom of choice can exist in a democracy.

But in a democracy society where there is absolute

poverty, freedom of choice is useless.

It is true the poor have economic freedoms, but

they have no opportunities to use such freedoms.
There are few less developed countries which have
courageously defied the powers of the rich
countries. They nationalized foreign investments,
and drove away all foreign businessmen and
industrialists. They make their own economic
plans, decisions, and programs. Indeed, the
freedom of choice belongs to them.
 The Existence of Human
Dignity
Human dignity
- is inherent in man
- it is a priceless gift of God
- without it man is useless human being

A man whether he is rich or poor, has an alienable

right to human dignity. His worth depends on it.
People have a distorted concept of human dignity.
They often equate dignity with material
possessions. They respect people who are rich and
look down on those who are poor.

Poor people lose their human dignity; they

become meek and submissive. Physical survival has
become their main concern.
European feudalism
Europe- peasants are treated like slaves
Austria- bridge slept with the landlord at the
1st night of the wedding

Industrial revolution
capitalists forced their workers to work until they
were completely exhausted

American slavery
- The Blacks were bought from Africa and sold in the United
States to work like animals in plantations
- Some of them became servants of the rich.
A nation where human dignity has been reserved
for the privilege of the few rich and powerful has
no right to claim economic growth in its teal sense.

Professor Todaro
The poor ones are not respected by the rich
nations They have been exploited. They become the
tools of the economic interests of the rich nations.