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Explain the key issues in relation to the developing nations concerning Economic development and economics growth.

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Introduction

Economics Essay No.1 Jong Bae, Moon - Explain the key issues in relation to the developing nations concerning ; Economic development and economics growth. There is a tendency to think of economic growth and economics development as being the same. However, this is not the same case. Economic growth occurs where there is an increase in the level of output of a country. Economic growth occurs where there is an increase in the actual amount of goods and services produce in one year. Only when the real volume of GDP (Gross Domestic Product) and the circular flow of income has increased can the economic growth be said to have occurred. It is a macro economic variable and can be measured in a fairy straight forward fashion development is a much broader concept involving non-economic and often quite intangible improvement to the standard of living. Economic Development is a broader concept than economic growth. It combines growth with an improvement in living standards. Economic growth does not take into account how GDP is distributed or the degree of poverty that exists or how much access people have to basic needs such as schooling, health and social services. ...read more.

Middle

Every this reason makes developing nations a low standard of living. It is thus possible to have economic growth with no or little development. This can be demonstrated using the production possibility curve in the diagram below. In the left-hand diagram the economic growth has shifted the production possibility to the right. However, the majority of the additional goods produced are luxury goods and benefit the higher income earners. In this case there is little if any development. In the production possibility curve shown on the right-hand side the additional output consists of necessity items and these could benefit the low-income earners. (1-2 economic growth with/without development) Economic growth doesn't show always positive features. For example, in Korea. Since 1960's, their economic growth shows rapidly high. But it makes Seoul, the capital city in Korea, makes overcrowded and causes pollution, congestion. And nowadays they shows that lost of a traditional way of life and anxiety and stress increased. In most countries urban incomes are grater than those of the rural based population. ...read more.

Conclusion

Some remain at the very edge of starvation, or have what is now known as a high vulnerability rating, whilst others have either propelled themselves beyond immediate disaster or are beginning to show some positive signs. An example of this latter category is Uganda, which now boasts 35 goods that are cost effective against Far East produced equivalents. One of there is men's white shirts. The former group contains many of the newly industrialized nations, such as South Korea, Taiwan and Singapore. Perhaps yesterdays low-income economies are becoming the middle order economies of today and the rich nations of tomorrow. Outline / Structure Introduction - Tendency of economics growth and economic development. Body 1) Definition of Economic growth 2) Definition of Economic development 3) Economic growth with PPF 4) PPF with/without Economic development 4) Economic growth and developing nations (South Korea) 5) Economic development and developing nations (Bangladesh) 6) Measuring economic development Conclusion - Great diversity amongst developing nations and industrialized nation's future. Diagram - (2-1 Production possibility curve) - (2-2 PPF with/without economic development) Economics HL Explain the key issues in relation to the economic concerning ; Economic growth and Economic development Name : Jong Bae, Moon Grade : 11th Economics HL1 ...read more.

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