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

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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. All the economies of the world were more or less agricultural economies at one period of time. The economy is called subsistence in that at this turn virtually a farmer can hardly grow sufficient food for his survival despite his utmost efforts at it. The economy is marred by the fact that the country usually has very low literacy rates, outdated means of cultivation. Poor transportation, short life expectancy, high infant mortality rates and widespread hunger.

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With the passage of time and scientific techniques being used by the farmers, there comes a stage when the farmer can excel in agricultural productivity. For Britain and India this stage is the age of “Industrial revolution”, and the economy transforms from the subsistence one to the commercial one. The main feature that can be attributed behind this development is the development in scientific technology. Tractors and other agricultural implements helped the farmers to produce more in shorter time. The steam engines accelerated transportation, and the farmers started getting a handy and fair price for their produce. Leaving the ...

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