Growth & Development Economics (GDP)

• Quizzes: 10

Development economics is a field that examines the economic aspects of the development process in low-income countries. It has evolved over time, beginning with early thoughts on colonialism and poverty in the 18th and 19th centuries. Classical economists like Adam Smith and David Ricardo focused on trade and economic growth, but it was post-World War II that development economics gained significant attention. The rise of newly independent nations and the need for strategies to address poverty and underdevelopment led to an increased focus on policies aimed at improving living standards in the Global South.

Key figures like Amartya Sen, Mahbub ul Haq, and Jeffrey Sachs contributed to the development of new models, incorporating human welfare and well being, beyond simple economic growth indicators. The discipline encompasses various theories, such as the “stages of growth” model proposed by Walt Rostow and the dependency theory, which critiques Western capitalist influence.

In practice, development economics has influenced policies in areas like education, health, infrastructure, and poverty alleviation. It emphasizes the importance of government intervention, sustainable development, and social equity. As global challenges evolve, development economics continues to adapt, incorporating issues like environmental sustainability, globalization, and inequality into its frameworks for growth and progress.