ECONOMIC GROWTH AND DEVELOPMENT AND PLANNING

Economic Growth
Refers to an increase in country’s national income.it is a narrower concept
than Economic Development. It is the increase in the value of goods and
services produced by every sector in the Economy
i.e. Gross National Product (GNP)
Economic Development
Refers to an increase in country’s national income i.e (GNP) Plus
institutional and structural changes in an economy. E.g Development of
industries, Agriculture increase in social amenities, improvement in
democracy, increase in happiness etc. Economic development is defined as
the development of the economic wealth of the country and is aimed at the
overall well-being of the citizens of a country, as they are the ultimate
beneficiaries of the development of their country
Characteristics of under development in developing countries
(i) Have under developed natural resources
(ii) Inadequate capital
(iii) General poverty due to low income.
(iv) They are open and dependent economics
(v) Low technology.
(vi) Have institutional constraints.
(vii) High levels of illiteracy.
(viii) Poor infrastructure.
(ix) Poor health care.
(x) Produce and export raw materials and semi process products
(xi) External debt problems
(xii) Faced with calamities e.g. drought
(xiii) High unemployment
(xiv) General lack of enterprise
(xv) Population problem due to over population.

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 Measures to overcome under development in developing countries
(i) Increase in exploitation of natural resources
(ii) Increase in production of good services increasing
(iii) Diversification of production
(iv) Adoption of appropriate technology
(v) Improvement of democracy
(vi) Development of industries
(vii) Establishment of irrigation schemes.
(viii) Controlling brain drain
(ix) Assistance to entrepreneurs
(x) Controlling population through family planning

Cost economic growth/negative effects of economic growth

(i) Leads to pollution
(ii) May lead to over exploitation of resources
(iii) Cause congestion in urban areas
(iv) May cause unemployment where firms adopt capital intensive
techniques of production
(v) Widens gap between the rich and the poor
(vi) Economic growth in the short run demand foregoing consumptions
leading to low standard of living.
(vii) May result into social evils like crime, prostitution
(viii) May result to external debt problems to finance investment.
(ix) Leads to foregoing leisure for work
(x) If economic growth is concentrated in urban areas it causes rural
urban migration.

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 Economic planning/ development planning
This refers to the utilisation by the government of a coordinated group of
policy instrument for the purpose of achieving definite objective within a
specified period of time.
Importance
(i) To ensure equitable distribution of income
(ii) To attract foreign aid
(iii) Maintain economic stability
(iv) To harmonize a country’s economic decision since economic
resources can be utilized in a systematic and optimum manner.
(v) Help to eliminate micro economic programs like un employment.
Characteristics of a good development plan
(i) Cost effective
(ii) Consider basic needs of a society
(iii) Consider available resources
(iv) Comprehensive
(v) An operational time frame
(vi) Implemented in phases
(vii) Attract foreign assistance
(viii) Suit available technology
(ix) Have clear objectives
(x) Compatible with social economic status of the pple
(xi) Should encourage portiapation of all people.

Requirement for proper planning

(i) Establishment of planning dept by government.
(ii) Training of staff on economic planning.
(iii) Requires a well organised statistical data.
(iv) Comprehensive research in all sector of economy.
(v) It should be free from political interference
(vi) Requires political stability in the country
(vii) Have clear objectives
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 (viii) Require both political and people support
(ix) Requires proper units for monitoring and lim
Limitation of economic planning
(i) Insufficient and unreliable data.
(ii) Inadequate technical facilities like comp
(iii) Limited range and effectiveness of policy instruments
(iv) High level of illiteracy
(v) Calamities like drought and famine.
(vi) A lot of political interference in planning
(vii) Deficient in plans and implementation.
(viii) Lack of political will in formulation and implementation of plans.

AGRICULTURE AND INDUSTRY

Agriculture
Explain role of agriculture in economic development
1) Contributes to countries national income
2) Promote exploitation of natural resource.
3) Creates demand in other sector of economy e.g demand
for manufactured goods.
4) Government earns revenues through taxes
5) Creation of employment.
6) Country earns foreign exchange through export.
7) A source of saving hence promoting investments
8) Promotes economic development.
Explain problems affecting agriculture sector in
developing countries.
1) Price fluctuation.
2) Declining terms of trade
3) Poor infrastructure.
4) Dependence on a few export commodities.
5) Agricultural products are faced with a lot of restrictions
into the market.
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 6) Most farmers use backward technology
7) Inadequate capital
8) Calamities like drought, flood.
9) Change in seasons.
10) High competition from synthetic products.
Measures implemented to overcome problems facing
agriculture sectors.
1) Use of buffer stocks
2) Use of compensatory finance.
3) Developing industrial sector to improve terms of trade.
4) Training of farmers on modern agriculture techniques.
5) Developing infrastructure.
6) Giving credits to farmers.
7) Investing in research to come up with better quality
products.
8) Establishment of irrigation schemes.
9) Diversification of agriculture products

Industry
Role of industrial sector in developing countries
1) Assist in diversification of economy.
2) Generates greater income than agriculture sectors
3) Helps in improving balanced of payment
4) Create employment
5) Government earns through taxes
6) Provides market for raw materials through export
7) Earns foreign exchange through exports
8) Promotes economic development

Problems facing industrial sector in developing

countries
1) Presence of under developed money in capital markets
2) Presence of under developed money in capital markets

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 3) Faced with inadequate capital
4) Inadequate sources of energy
5) Inadequate skilled personnel
6) Poor infrastructure
7) Inadequate entrepreneurial skill
8) General poverty leading to low purchasing power
9) General insecurity
10) Industrial products face a lot of restriction in interial
market
Measures implemented to overcome problems facing
industrial sectors
(i) Development of infrastructure
(ii) Formation of economic integration
(iii) carrying out trade and investment reforms
(iv) Adopt modern technology
(v) Imposing import restriction
(vi) Improvement in security by government
(vii) Credit facilities to entrepreneurs
(viii) Use of alternative source of energy
(ix) Training of entrepreneurs
(x) Encouraging foreign investment.
Past paper questions
 November 2019 question no-7b
 November 2018 question no-7b
 May 2018 question no-3d
 November 2017 question no-5c
 November 2016 question no-7c
 May 2016 question no-7c
 September 2015 question no-4b
 May 2015 question no-7b
 December 2014 question no-6c
 December 2013 question no-7c
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