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

LDC Essay Economics Aid

Extracts from this document...


ESSAY HIGHER ECONOMICS LEVEL: Explain the key issues in relation to the developing nations concerning the consequences of economic growth To begin, it is extremely expedient and beneficial if meticulous definitions and what processes of the topic at hand are given. In this second LDC essay, the main focus is on the Consequences of Economic Growth. While a country may grow wealthier therefore, during the growth of its real productivity, it does not essentially mean that it will expand. Economic Growth on the other hand, occurs where there is an increase in the productive potential of the economy and is best calculated by the boost in a country's real level of output over a period of time, for example the increase in the actual Gross Domestic Product. Economic growth is caused by improvements in the quantity and quality of the factors of production that a country has available: Land, Labour, Capital and Enterprise. On the contrary economic decline may take place if the quantity and quality of any of the factors of production falls as each one of the factors rely heavily on each other. ...read more.


LDC's must focus on goals such as extending property rights and force private conglomerates to pay more to the problems they cause, such as pollution of environment. Or another example could be subsidising non-polluting methods of production, and award permits to pollute to a certain extent before buying another tradable permit. However for every problem, there is always a solution within the problem. Perhaps a few suggestions for economic developing countries to follow in achieving their goals of avoiding any negative consequences in their rapid pace of economic growth. To achieve goals like the ones addressed above, solutions can be involving local communities in their own development to propagate efficient economic growth. So externalities need to be taken into account when considering economic growth but, for many developing countries, "there will be a significant opportunity cost if they try to grow while minimising externalities, because this requires investment and perhaps reform, both of these being expensive." 2 1 http://textbooks.triplealearning.co.uk/mod/glossary/view.php (Triple A online Textbook) 2 "http://www.economist.com/world/la/displayStory.cfm?story_id=2193852." (The Economist, Inequality in South America, January 8th 2006) INCOME DISTRIBUTION: As economies grow and develop income distribution is likely to amplify. ...read more.


There is no qualm that people want to enjoy a better standard of living. In addition, Economic growth is the very aspect that enables us to enjoy a comfortable standard of living. Despite the fact that one must keep in mind the favourable consequences of economic growth such as: employment, opportunities for investment and the heights of new significant political and communal dimensions. Economic Growth however, brings about negative consequences such as: inequality of income, negative externalities, such as acidic rain, loss of non-renewable resources, loss of land and lifestyle changes. Many developing nations have a propensity to lack the dominant political outline to control the negative economic externalities, believing that dominating these; will limit the rate of economic growth. Sustainability has become the new format for economists, in regard to developing nations, however the problem lies on the fact of the blindness of economical affluent nations, who tend to ignore the concept of the LDC's, that more is better. 1 http://textbooks.triplealearning.co.uk/file.php/75/mod5_notes/page_22.htm 1 Jackline Wahba, "Keeping up with the Joneses", 22(1), September 2004 (Economic Review) 2 "http://www.economist.com/world/la/displayStory.cfm?story_id=2193852." (The Economist, November 3rd 2006) 3"http://search.ft.com/ftArticle?queryText=Consequences+of+Growth&y=12&aje=true&x=11&id=070302000822 ( Financial Times Report - Romania, "Rapid Growth puts Strain on Stability, March 2nd 2007) 4"http://search.ft.com/ftArticle?queryText=Consequences+of+Growth&y=12&aje=true&x=11&id=070302000822 ( Financial Times Report - Romania, "Rapid Growth puts Strain on Stability, March 2nd 2007) ?? ?? ?? ?? ...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. Extended Essay Economics

    was created. CADIVI, a division of the government, handles the conversion of Bolivares to US dollars. This prevents the exit of capital and enables firms to meet their import needs. These factors have had significant effects on the functionality of firms in Venezuela such as a privately-owned Indian pharmaceutical company operating in Caracas.

  2. Alabama's Cigarette Tax Article. The basic economic problem in this article is negative externalities. ...

    Firstly, the government is placing partial ban on smoking. That is, making it illegal to smoke in certain areas, in this case restaurants, malls, etc. the hopes of politicians are by making it more difficult to smoke the demand for cigarettes will fall and so reduce smoking and secondary smoking.

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

    Another is, on August of 2010, Mexico's new list which includes meats, vegetables and household items face tariffs of 5 percent to 25 percent, which will hurt Texas more(12). Analysis on Element 6 In brief, according to the webpage, "the World Trade Organization (WTO)

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

    However, at the moment the government budget is not enough to solve the electricity supply problem. First of all, if fewer goods are produced due to lack of electricity to operate machinery efficiently, economic growth will decrease. Furthermore, power surges disrupt the everyday lives of citizens, transportation, etc.

  1. UK Car Scrappage Scheme. This essay will firstly display and show the effects of ...

    So in a period of 4 months there were almost 230,000 cars to scrap, which will mean there is a lot of scrapped metal which will hopefully lead to push the scrapped metal prices down in the local or the national market.

  2. Why do political questions so often boil down to economic issues? Is ...

    The mixture of politics and economies can be seen in our daily lives, when the parties compete for power transceding each other with promises to increase economic growth, reduce inflation, tackle poverty and so on. The state of the economy is also important in elections, f.i.

  1. This essay will evaluate the concept of what negative externalities are and how they ...

    Finally, some believe that there is no evidence that taxes can reduce pollution. Another, more drastic approach would be to have the government ban all the major polluting factories. If not they could pass a law forcing each factory to only be able to produce a certain amount of pollution during a certain time period.

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

    better understanding of medical knowledge and sanitation, lower child mortality rates and higher expectations of living resulted. Also, much of this population increase is attributed to technological advancements that allowed for greater food production therefore creating food surplus. The third factor was Britain's colonial empire, which provided raw materials for the factories as well as more markets for their goods.

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