• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

What are the stages in economic development? Discuss this in reference to at least two countries.

Extracts from this document...


´╗┐What are the stages in economic development? Discuss this in reference to at least two countries. ?Economic development usually refers to the adoption of new technologies, transition from agriculture-based to industry-based economy, and general improvement in living standards.? At one time it was believed as proposed by Malthus in his supposition known as Malthusian catastrophe that within a few centuries the mushrooming population of the world would consume all the food resources, and would reduce humanity to the brink of starvation. But the Malthusian catastrophe failed. All countries, excepting, a few have shown a significant development and transformation in the fields of producing means of sustenance, utilizing resources, creating employment and increasing the per capita income. To show how economic development has coped with the crisis of great depression and recession from time to time, I would like to follow ?Ruston?s and Jeffrey Sachs?? models particular with reference to the development of economies in Britain and India-a place where I am studying and where I initially belong to, respectively. In his 2008 book Common Wealth, economist ?Jeffrey Sachs? postulates that an ?impoverished country moves up from one stage to the next just like a person climbing up the rungs of a ladder, gradually achieving more and more prosperity.? The journey begins from the initial stage called a "subsistence economy" wherein the farmers play the pivotal role in transforming the economy of the country. ...read more.


Highways, runways, the network of railways, the use of satellites, wireless communication proves very conducive to the economy, and the economy blooms. Foreign investment and international trade rises, the term ?multinational? ?global? replaces the national and indigenous, and the economy soon becomes prospering. The initial boost in wealth is like a seed, which, once planted, is able to be self-sustaining and grow into a mighty tree on its own. Since India had long been colonized by Britain, there were widespread effects on its economy. The colonizers were more concerned about their profits even at the cost of exploiting the other nations. But after the World War II India was declared independent. The result is evident. Indian economy is still developing while that of Britain is developed. ECONOMIC DEVELOPMENT IN BRITAIN The graph above shows that the economy of Britain has also undergone rise and fall from the years 1979 to 2012. But the graph is most significant in showing that the economy took a boos from the year 2009 where it was it its ever lowest. Macintosh HD:Users:rahulgautam:Desktop:uk-econ-growth-1980-2012-1024x703.png As per Reuters, April 3, 2014, ?Britain's dominant services sector expanded steadily in March, pointing to solid economic growth in the first quarter, even though the rate of expansion was the slowest since last June and hiring eased, a survey showed on Thursday.? The index is stable considerably above 50 marks that denote a tremendous rise in growth and development of the UK economy. ...read more.


months, driven largely by growth in new business orders and an improved macroeconomic situation.? Unlike the UK inflation has been a serious problem in the Indian economy and as a result the Reserve Bank of India raised the key policy rate by 0.25 per cent to 8 in its bid to control inflation. Macintosh HD:Users:rahulgautam:Desktop:g_essay_web.jpg There has been a tremendous growth in the Indian manufacturing sector also. The graph above shows clearly how the period ending 1981-2013 is an indicator of the growth of Indian economy over the years. In a survey undertaken by The Hindu, it is expected that ?improved economic performance may help generate about 3.2 million additional jobs.? The year 2014 may be a further turning point in Indian economy as election have been scheduled all over the country. The political parties are coming up with different agendas and propagandas. As per the economists, this even may mark ?The revival of manufacturing sector through greater emphasis on infrastructure development and by rationalization of labor laws.? Another survey conducted by Manpower Group indicates, ?India has emerged as the most optimistic nation in terms of hiring plans and sectors such as aviation, IT & ITeS.? Since India and Britain share history between them during colonization, and foreign trade after Indian independence, there is seen a mutual growth in their respective economies. The graph below shows how there has been an increasing trend in the imports and exports of the two countries. Macintosh HD:Users:rahulgautam:Desktop:india_uk_trade_dec12.jpg ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Economics essays

  1. GPD countries

    will focus on GDP per capita, which is GDP divided by the number of country's population.

  2. Extended Essay

    and demand for natural gas in Hungary and the likely effect of the introduction of the new subsidy system Price of Natural D S-with the new subsidy (S') Gas S-with the old subsidy (S) Pe Pn Quantity of natural gas Qe Qn As figure 4 attests, the government's decision detracted

  1. World Economics assignment. The core economic issues that are focused on in this ...

    What's more, it decreases the cost of foreign investment to dedicate domestically. Analysis on Element 13 According to wikipedia, "Least Developed Country (LDC) is the name given to a country which, according to the United Nations, exhibits the lowest indicators of socioeconomic development, with the lowest Human Development Index ratings of all countries in the world.

  2. Economics Extended Essay - To what extent has the market for paintings in South ...

    Speculators pursued artworks of contemporary artists since these artists were new in the market and once they became popular, demand for their paintings would increase and so would price When this happened, speculators would sell off the paintings they had bought earlier, making a profit on their investment.

  1. An Investigation of Vietnam's Barriers of Economic Growth and Development

    The Human Development Index (HDI) re-illustrates Vietnam's lower development and welfare. It weighs real national income per year, the adult literacy rate, average years of schooling, and life expectancy in ranking a country in terms of development. The closer the HDI value is to 1, the more developed the country is said to be.

  2. What has happened to Canada's demographic over the past 50 years? What are ...

    Overall, the main reasons of labour shortages are due to higher government funding for certain organizations, but more importantly the aging population, which causes a large number of retirements. Because there are more older employees than younger employees, every time an older employee quits, a younger employee must fill his spot right away.

  1. Role of ICT for "Make in India" government initiative.

    Major E-Commerce company Flipkart has signed a pact with the Textile Ministry to enable weavers to showcase their products as a part of this initiative. Country Sales in $ Billion 2012 2016 India 1.6 8.8 Australia 23.2 35.4 Japan 63.9 97.6 China 169.4 356.1 Advantage and Disadvantage of Make in

  2. 15 Historical Economic Questions on Mercatilism and the Development of European Countries.

    These investments continued to drive forward the Dutch East India Company, which was now dominating trade between European countries as well. The Low Countries was geographically poised for east-west and north-south trade routes. They also connected to a large German hinterland through the major river The Rhine.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work