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Names of group

members
NAME GROUP
AHMAD FADIL BUANA(C1A012057)
RAHMAT KURNIADI(C1A013031)
GUNTUR MANDALA PUTRA(C1A015076)
GIO AZIZI NOFRIZAL(C1A016033)
ALDO(C1A016038)
UNDERSTANDING ECONOMIC GROWTH

ECONOMIC GROWTH IS A PROCESS OF CONTINUALLY CHANGING A COUNTRY'S


ECONOMIC CONDITION TOWARDS A BETTER CONDITION DURING A CERTAIN
PERIOD, ECONOMIC GROWTH CAN ALSO BE INTERPRETED AS A PROCESS OF
INCREASING THE PRODUCTION CAPACITY OF AN ECONOMY WHICH IS REALIZED
IN THE FORM OF AN INCREASE IN NATIONAL INCOME, THE EXISTENCE OF
ECONOMIC GROWTH IS AN INDICATION OF THE SUCCESS OF ECONOMIC
DEVELOPMENT
 Economic Growth Theory
In the 19th century many economists analyzed and discussed, and
put forward theories about economic growth, including the
Frederich List, Bruno Hilder Brand, Karl Bucher and Walt Whitman
Rostow
 Frederich List
He is a Laisser Faire adherent and argues that this system can
guarantee the allocation of resources optimally but protection for
industries is still needed
1. The period of hunting / wandering
2. Farming and crafting periods
3. The period of crafts, industry and trade
Bruno Hilder Brand
He was a critic of the Frederich List, they said that economic
development did not originate from the characteristics of
production or consumption, but emphasized the distribution
method used.
He proposed 3 distribution systems

 Natural or barter economy


 Economy of money
 Credit economy
Karl Bucher

According to him, the economic growth of the people is seen from the relationship
between producers and consumers
1.The household is closed
2. Run down the city stairs
3. The nation's household
4. World household
Whalt Whitman Rostow

 Walt Whitman Rostow


WW Rostow in his book "The Stages of Economic Growth" argues
that the process of economic growth can be divided into five
stages
 1.)Traditional Society (The Traditional Society)
 • Labor-intensive agriculture;
• Not familiar with science and technology (Newton's era);
• Economic livelihoods;
• Results are not stored or traded; and
• The existence of a barter system
2. Prerequisites for Take Off
 1.) Reduced Traditional Mental Attitudes
At this stage the traditional mental attitude slowly begins to diminish
 2.) Saving and Investment Increase
During this period banks and financial institutions sprung up in line
with increasing savings and investment on a regular and
fundamental basis to exceed the rate of population growth
 3.) Introduction to Advanced Technology
Reduced traditional mental attitudes, then in the field of education
and increased saving and investment
 4.) Growing Nationality
The national spirit which usually arises as a reaction to intervention
and foreign domination, serves as a potential force in the birth of
the transition period
3. Take Off (The Take Off)

 1.) Net investment increases about twice as much as up to 10


percent of national income
To take off an economy requires a relatively high level of
investment, which is at least 10.5 percent of Net National Income
(NNI).
 2.) The development of one or several important manufacturing
(industrial) sectors with high growth rates
First, the leading growth sector, namely economic activity that
creates rapid growth and can expand to various other sectors in the
economy
4. The maturity movement (The
Drive to Maturity
 Technology Maturity
The use or use of technology has spread in various directions, and
technology is very influential in various activities
 Business Management
Leadership in the business world (companies) changes, where the
role of managers is increasingly important and separate from the
owner (the owner).
5. The Age of High
Massconsumption
 • High proportion of employment in services;
• Widespread consumption of durable goods and services;
• Increase in wealth services expenditures
 Increase the power and influence of the country out of the country
2.4. Indonesian economic growth
 1. Old Order Period (1945 - 1966)
 Economic growth experienced a very drastic decline of 5%, from 6.9% to 1.9%,
 from 1955, when the inflation rate rose 33% and continued to increase even at
the end of the old order power inflation rate reached 650%
2. The New Order Period (1966 -
1997)
 (1) fighting inflation,
(2) sufficient food stock reserves,
(3) rehabilitate economic infrastructure,
(4) increase exports,
(5) creating and providing employment,
(6) inviting foreign investors again.
 a foreign exchange producer.
This has resulted in an economic downturn in which there is a
very high dependence on import inputs resulting in a transaction
deficit in the current account
 Factors Affecting Economic Growth
The factors that influence Indonesia's economic growth are inseparable
from the problem of gaps in the management of the economy
3. Reformation Period (1998 - Present)
During this reform period the Indonesian economy was marked by a
monetary crisis which continued to become an economic crisis which until
now has not shown signs of recovery

 C. Factors Affecting Economic Growth


The factors that influence Indonesia's economic growth are
inseparable from the problem of gaps in the management of the
economy
 Factor of investment
 Factors of foreign trade and balance of payments
 Factors of monetary policy and inflation
 State financial factor,