MANAGEMENT OF SOCIAL

AND ECONOMIC CHANGE

Economic Growth and

Development
GROUP 3:

Borjal, Jimmy C.
Cabales, Elba L.
Lina, Fatima M.
Panganiban, Derwin E.
Pesa, Lovelyn P.
Ricafrente, Neil P.
ECONOMIC GROWTH

inflation.
ECONOMIC GROWTH
ECONOMIC GROWTH

TWO TYPES OF
ECONOMIC
GROWTH
ECONOMIC GROWTH

Actual Growth Potential Growth

ECONOMIC GROWTH

Affecting Factors:
ECONOMIC GROWTH

•How is Economic Growth Measured?

 ECONOMIC GROWTH

Gross Domestic Product – GDP

- the monetary value of all the finished goods and services
produced within a country's borders in a specific time period.
- includes all private and public consumption, government
outlays, investments and exports minus imports that occur
within a defined territory.
- usually calculated on an annual basis, it can be calculated on
a quarterly basis as well
- measurement of a nation’s overall economic goods and
services offered.
ECONOMIC GROWTH

Gross National Product -

GNP
ECONOMIC GROWTH
ECONOMIC GROWTH

Gross Domestic Products (GDP) Gross

National Products (GNP)

Economic indicators.
-
ECONOMIC GROWTH

CAUSES OF
GROWTH IN
ECONOMY
ECONOMIC GROWTH
ECONOMIC GROWTH

BENEFITS OF
ECONOMIC
GROWTH
ECONOMIC GROWTH
ECONOMIC DEVELOPMENT
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH

History of the Economic Development of the

Philippines
• 1575.
• 1898.

• 1900.

• 1942.

• 1945.

• 1946.
ECONOMIC GROWTH

History of the Economic Development of the

Philippines
• 1950S.

• 1967.

• 1972.

• 1990s.
ECONOMIC DEVELOPMENT

TWO FACTORS
OF ECONOMIC
DEVELOPMENT
ECONOMIC DEVELOPMENT

1. Economic
Traditional Approach-defines development
strictly in Economic Terms
Growing Economy Approach-defines
development in Material
Welfare, Eradication of Mass
poverty; human beings are at
the center of Economic
Development
ECONOMIC DEVELOPMENT

2. Non- Economic - are the elements which

have no direct effect upon the economy
of the country
Religion
Ethnicity
Social Activity
Political Elements
ECONOMIC DEVELOPMENT

Underdevelopment Economic Development

Traditional/Conventional
statistics/indicators to measure progress
of the Philippine society

(PSNA)

(StatDev)

(MDGs)
ECONOMIC GROWTH AND
ECONOMIC DEVELOPMENT
IN COMPARISON
 Differences:
ECONOMIC GROWTH ECONOMIC DEVELOPMENT
STAGES OF GROWTH

Rostow stated that there are five stages of

economic growth:

-The traditional society

-The Pre conditions for take-off
-The take-off
-The drive to maturity
-The age of high mass consumption
THE TRADITIONAL SOCIETY
-Less developed society in terms of science and
technology.
-Limited production function.

PRE-CONDITIONS FOR TAKE-OFF

In the second stage of growth societies are in the
process of transition, building up conditions which
in course of time enable them to take-off.
PRE-CONDITIONS TO TAKE-OFF
-change in economic and technical dimensions.

THE TAKE-OFF STAGE

It is the period in which growth becomes a normal
condition of the society.
It begins on account of some sharp stimulus which
may come from political revolution, innovation.
THE TAKE-OFF STAGE

1. PRIMARY growth sectors, where possibilities of

high growth rate exists and activity in them sets in
motion expansionary forces elsewhere.
2. SUPLEMENTARY growth sectors, where rapid
growth takes place in direct response to progress
in primary growth sectors.
3. DERIVED growth sectors, where growth
materialises in some steady response to
increases in real income, population, etc.
DRIVE TO MATURITY

After take-off, there follows a long interval of

sustained growth known as the stage of drive to
maturity. Rostow defines it "as the period when a
society has effectively applied the range of modern
technology to the bulk of its resources
The makeup of the economy changes unceasingly as
technique improves, new industries accelerate, older
industries level off. The economy finds its place in the
international economy: goods formerly imported are
produced at home; new import requirements
develop, and new export commodities to match them
AGE OF HIGH MASS CONSUMPTION

As society approaches maturity, its attention shifts

from the problems of production to the problems of
consumption.
Poverty is the scarcity or the lack of a certain
(variant) amount of material possessions or
money. Poverty is a multifaceted concept,
which may include social, economic,
and political elements. Absolute poverty,
extreme poverty, or destitution refers to the
complete lack of the means necessary to
meet basic personal needs such
as food, clothing and shelter
ABSOLUTE POVERTY, extreme poverty, or
abject poverty is "a condition characterized by
severe deprivation of basic human needs,
including food, safe drinking water, sanitation
facilities, health, shelter, education and
information. It depends not only on income but
also on access to services. The term 'absolute
poverty', when used in this fashion, is usually
synonymous with 'extreme poverty':
THE LEAST DEVELOPED COUNTRIES (LDCS) is a list of
the countries that, according to the United Nations,
exhibit the lowest indicators
of socioeconomic development, with the lowest Human
Development Index ratings of all countries in the world

The "DUAL SECTOR MODEL" is a theory of development

in which surplus labor from traditional
agricultural sector is transferred to
the modern industrial sector whose growth over time
absorbs the surplus labor, promotes industrialization and
stimulates sustained development.
 Source of Economic Growth
1. Human Resources:
Labour inputs consist of quantities of workers and of the skills of
the work force.
Many economists believe that the quality of labour inputs—the
skills, knowledge, and discipline of the labour force—is the single
most important element in economic growth.
A country might buy the most modern telecommunications
devices, computers, electricity-generating equipment, and fighter
aircraft. However, these capital goods can be effectively used and
maintained only by skilled and trained workers.
Improvements in literacy, health, and discipline, and most
recently the ability to use computers, add greatly to the
productivity of labour
2. Natural Resources:
.The important resources here are arable land,

oil and gas, forests, water, and mineral

resources. Some high-income countries like
Canada and Norway have grown primarily on
the basis of their ample resource base, with
large output in agriculture, fisheries, and
forestry.
 3. Capital Formation:
Tangible capital includes structures like roads and
power plants, equipment like trucks and
computers, and stocks of inventories. The most
dramatic stories in economic history often involve
the accumulation of capital
4. Technological Change and Innovation:
-technological advance has been a vital fourth
ingredient in the rapid growth of living standards.
Technological change denotes changes in the
processes of production or introduction of new
products or services. Process inventions that have
greatly increased productivity were the steam
engine, the generation of electricity, the internal-
combustion engine, the wide-body jet, the
photocopier machine, and the fax machine.
Human resources
-are the people who make up the workforce of
an organization, business sector, or economy. "Human capital" is
sometimes used synonymously with "human resources",
although human capital typically refers to a more narrow view
.Likewise, other terms sometimes used include "manpower",
"talent", "labour", "personnel", or simply "people".
-A human-resources department (HR department) of an
organization performs human resource management, overseeing
various aspects of employment, such as compliance with labour
law and employment standards, administration of employee
benefits, and some aspects of recruitment and dismissal.
Education in the Philippines is managed and regulated by
the Department of Education (DepEd), Commission on Higher
Education (CHED) and Technical Education and Skills Development
Authority (TESDA). DepEd is responsible for the K–12 basic
education; it exercises full and exclusive control over public
schools and nominal regulation over private schools, and it also
enforces the national curriculum that has been put in place since
2013.
From 1945 to 2011, basic education took ten years to complete—six
years of elementary education and four years of high school
education for children aged six up to fifteen. However, after the
implementation of the K–12 Program of DepEd and subsequent
ratification of Kindergarten Education Act of 2012 and Enhanced
Basic Education Act of 2013, the basic education today takes thirteen
years to complete—one year of kindergarten, six years of elementary
education, four years of junior high school and two years of senior
high school for children aged five up to seventeen.[5][6] As of 2017, the
implementation of Grade 12 has started.
INTERNATIONAL TRADE is the exchange
of capital, goods, and services across international
borders or territories.In most countries,
such trade represents a significant share of gross
domestic product (GDP).

GENERAL AGREEMENT ON TARIFFS AND

TRADE (GATT) was a legal agreement between many
countries, whose overall purpose was to promote
international trade by reducing or eliminating trade
barriers such as tariffs or quotas. According to its
preamble, its purpose was the "substantial reduction of
tariffs and other trade barriers and the elimination of
preferences, on a reciprocal and mutually advantageous
Asia-Pacific Economic Cooperation (APEC) is
a forum for 21 Pacific Rim member economies that
promotes free trade throughout the Asia-
Pacific region. It was established in 1989 in response
to the growing interdependence of Asia-Pacific
economies and the advent of regional trade blocs in
other parts of the world; to defuse fears that highly
industrialised Japan (a member of G8) would come to
dominate economic activity in the Asia-Pacific
region; and to establish new markets for agricultural
products and raw materials beyond Europe.