This document contains comprehensive notes on economic development and growth for Grade 11 economics students. Topics covered include economic development strategies, characteristics of developing countries, methods to achieve development, and the importance of indigenous knowledge systems. These n...
Economic Growth vs. Economic Development
1. Economic Growth:
o Refers to an increase in a country's Gross Domestic Product (GDP).
o Indicates the production of more goods and services.
o Economic growth rates reflect whether a country is developing or
regressing.
2. Economic Development:
o Involves improving the standard of living, including health, education,
and infrastructure.
o Goes beyond just GDP growth; focuses on overall well-being.
3. Importance of Economic Development:
o High economic growth alone is not sufficient to reduce poverty.
o Economic development is necessary to improve living conditions
and reduce inequality.
4. Tiger Economies of East Asia:
o Countries like Singapore, Malaysia, Thailand, South Korea, and China
are examples.
o These countries that have experienced rapid economic growth and
improvements in living standards
5. Negative Growth Rates:
o They face challenges in improving living standards and reducing
poverty.
6. Development Policies in South Africa:
o Focus on strategies to improve the living standards of citizens.
o Policies implemented since 1994 aimed at addressing economic and
social challenges.
,Unit 1: Methods of Development
1.1 Measuring Levels of Development
1. Categories of Countries:
o Developed Countries: Highly industrialized with a high standard of
living
o Developing Countries: Lower levels of industrialization, lower
standard of living, and less access to goods and services (e.g.,
countries in Africa, South-East Asia, Central and South America).
2. Other Classifications:
o More Developed Countries (MDCs) vs. Less Developed Countries
(LDCs).
o Industrialized Countries vs. Industrializing Countries.
o Rich Economies (upper-middle-income and high-income countries)
vs. Poor Economies (low-middle-income and low-income countries).
3. Inequalities Within Categories:
o Even within the same category, there can be significant disparities. For
example, Brazil is wealthier than Bangladesh, though both are
developing countries.
4. Human Development Index (HDI):
o The United Nations compiles the HDI to measure development levels
based on:
Health: Life expectancy at birth.
Education: Mean years of schooling and expected years of
schooling.
Standard of Living: GDP per capita.
o HDI ranks countries on a scale from 0 (lowest) to 1 (highest).
, 1.2 Methods to Improve Levels of Development
1. Economic Development Directions:
o Economies can develop, stagnate, or regress.
o The focus of development has shifted from industrialization to service
and technology-driven economies.
o Development requires improvements in HDI indicators like poverty,
inequality, and unemployment, not just GDP growth.
2. Methods to Achieve Development:
o Natural Resources: Effective use of natural resources like arable land,
minerals, and fuels to increase output
o Industrial Development: Developing industries to supply
goods/services domestically and create jobs, especially in rural areas.
o Human Resources: Educating and ensuring the health of the
population to contribute to development.
o Economic Partnerships: Securing fair trade through agreements and
joining trade blocs
o Capital Formation: Savings and investments drive early-stage
development. Foreign investments can be unstable, so domestic
savings are crucial.
Unit 2: Common Characteristics of Developing Countries
Key Concepts:
Birth Rate: Number of live births per 1,000 people in a year.
Dependency Burden: Ratio of dependents (aged 0-14 and over 45) to the
working-age population (15-64).
Labour Force: Citizens aged 15-64 who are employed or seeking
employment.
Labour Productivity: Output per worker over a period, e.g., in an hour.
Population Growth: The increase in the number of people, which can strain
resources.
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