ECONOMIC DEVELOPMENT

                                                       ECONOMIC DEVELOPMENT

A branch of economics that analyzes the problems faced by developing countries and find ways to solve these problems so that developing countries can develop its economy even faster.

ECONOMIC DEVELOPMENT

The activities carried out to develop the economy and living standards or
A process leading to increased per capita income of residents in long-term
Analysis of Economic Development Problems = Developing Countries
NOTICE OF ECONOMIC DEVELOPMENT

Before World War II, scientists have little regard for economic development, due to the following factors:
1. There are still many countries as colonies
2. Lack of effort from community leaders to discuss economic development. More concerned with the attempt to gain independence from the colonizers.
3. Economists analyze more economic failures and high unemployment (major depression)

Post-World War II (Th. 1942), many countries gained independence (ie: India, Pakistan, Phillipina, Korea & Indonesia), attention to economic development began to grow due to:
1. Colony which gained independence
2. The development of the ideals of the newly independent country to catch up to the economy.
The willingness of developed countries to assist developing countries in speeding
3. economic development.

Classification COUNTRIES WORLD

I. Based on the level of social welfare:

a. The State of the World I (First World)
(Developed Countries / Developed Country)

Western Europe (UK, France, Netherlands, Portugal, West Germany)
North America (USA, Canada)
Australia, New Zeland, Japan, Korea, China

b. The State of the World II (Second World)
(Developed Countries / Developed Country)
- Eastern Europe (Russia, Poland, East Germany, Czechoslovakia)

c. The State of the World III (Third World)
(Developing Countries / South State)
- Most of Asia (except Japan, Korea and China),
- African Countries
- Countries Latin America (Central and South America).

Classification COUNTRIES WORLD

II. Based on Income Level
Per capita:

a.Negara Maju (Developed Country)> U $ 2,000
b.Negara Advanced Semi (Semi Developing Country)> U $ 400
c.Negara Poor (Under Developing Country) <U $ 400
Sources: World Bank, 1999.

Destination Development Economic Analysis:
1. Examine the factors that lead to lack of development.
2. Address factors that cause delays in construction.
3. Suggests ways in which the approach can be taken to overcome the problems encountered thus speeding up the course of development.
Important areas analyzed in Economic Development:

1. Problems of capital formation (investment)
2. The problem of foreign trade (Exports & Imports)
3. Problems savings mobilization (Saving)
4. The issue of foreign aid
5. Problems in agriculture or industry
6. Problems of education and its role in creating a development

ECONOMIC DEVELOPMENT & ECONOMIC GROWTH

ECONOMIC DEVELOPMENT;
ECONOMIC GROWTH;
1. REGARDLESS OF RATE INCREASE ADDED GDP POPULATION STRUCTURE AND CHANGE IN ECONOMIC ORGANIZATION.
2. ECONOMIC GROWTH FOR ECONOMIC STATE EXPRESS ADVANCE.

CAUSES OF ECONOMIC GROWTH ACCELERATION:


1. THE DESIRE to catch up
2. POPULATION GROWTH
3. MUST STATE IS DEVELOPED TO HELP NYSB
4. IS humanity THD NYSB

NATIONAL INCOME ACCOUNTING METHOD


1. METHOD OF PRODUCTION (Production Method)
2. METHOD OF INCOME (Income Method)
3. METHOD OF EXPENDITURE (Expenditure Method)

11 NATIONAL INCOME CALCULATION OF PRODUCTIVE SECTORS:

1. AGRICULTURE
2. PROCESSING INDUSTRY
3. Mining and quarrying
4. ELECTRICAL
5. WATER AND GAS
6. BUILDING
7. TRANSPORT AND COMMUNICATION
8. TRADE
9. BANKS AND FINANCIAL INSTITUTIONS
10. Residential rental
11. DEFENSE
12. OTHER SERVICES

NATIONAL INCOME CALCULATION

1. NATIONAL INCOME APPLICABLE PRICE
(NOMINAL) (CURRENT PRICE)

2. NATIONAL INCOME FIXED PRICE (REAL)
(CONSTANT PRICE)

Per capita per year REVENUE FOR NEEDS TO KNOW:

1. COMPARE THE LEVEL OF WELFARE
SOCIETY OF PERIOD TO PERIOD

2. GROWTH RATE COMPARE
ECONOMY AMONG COUNTRIES

3. SEE WHETHER SUCCESSFUL DEVELOPMENT
ECONOMY OF A COUNTRY.

Per capita income LEVEL LEVEL NOT FULLY REFLECT AND LEVEL OF DEVELOPMENT OF A WELFARE STATE, BECAUSE:
1. WEAKNESSES WEAKNESSES-D sourced from IMPERFECT IN NATIONAL INCOME AND CALCULATING per capita income.
2. WEAKNESSES WEAKNESSES-D stems from the fact THAT LEVEL OF PUBLIC WELFARE ARE NOT DETERMINED BY INCOME LEVEL BUT ALSO THEIR IS BY OTHER FACTORS.

WEAKNESSES 1
1. Methodological and statistical weaknesses in calculating the per capita income with the value of its own currency and foreign currency
2. Occurs misrepresentation / too low thd poor countries because of the kind of activities in poor countries consists of small units and scattered in various corners allows for variables not included in the national income accounts
3. The official exchange rate of the currency of a country with foreign exchange price comparison does not reflect the two countries, although in theory it states said exchange rates

WEAKNESSES 2

OTHER FACTORS THAT DETERMINE INCOME LEVEL OF A COMMUNITY WELFARE STATE:
1. ECONOMIC FACTORS:
• AGE POPULATION STRUCTURE
• UNEVEN DISTRIBUTION OF REVENUE, NOT ENJOY SOME OF DEVELOPMENT.
• DIFFERENT PUBLIC EXPENDITURE complexion
• THE FIELD / leisure time HIGH
• ECONOMIC DEVELOPMENT REVENUE INCREASE FOR ONLY NO BUT ALSO TO REDUCE THE NUMBER OF UNEMPLOYMENT.

NON ECONOMIC FACTORS:

- EFFECT customs
- CLIMATE AND NATURAL CONDITIONS AROUND
- Liability ACTING AND REMOVED THE OPINION AND ACTING

MONETARY INDICATORS OF DEVELOPMENT & NON MONETARY

MONETARY DEVELOPMENT INDICATORS

1. Per capita income
2. Net Economic Welfare Indicators (Net Economic Welfare) Introduced William Nordhaus and James Tobin (1972), refining the values ​​of GNP to obtain a better economic indicator, with two ways:
a. Positive Correction: Pay attention to your free time (leisure time) and the informal sector economy.
b. Correction Negative: Damage to the environment by development activities

DEVELOPMENT OF NON-MONETARY INDICATORS

1. Social Indicators
By Backerman; distinguished 3 groups:
• Attempting to compare the level of welfare of society should be. in the two countries by improving the way the national income accounts, spearheaded by Collin Clark and Golbert and Kravis.
• Adjustment of revenue society should be. compared by considering the price of various countries.
• Attempts to compare the level of welfare of each country based on the data are ill-monetary (non-monetary indicators). Non-monetary indicators simplified (modified non-monetary indicators).

Quality of Life Index and the Human Development Index (HDI)

Morris D: Physical Quality of Life Index (PQLI) Quality of Life Index (IKH) which is a combination of three factors:

1. Life Expectancy
2. Death rate
3. Literacy levels.

Since the year 1990 the UNDP developed the Human Development Index (HDI) (Human Development Index HDI =):

(1). The survival rate
(2). Society and the literacy rate
(3). Level of real income per capita public
based on the purchasing power of each country.

The amount of index 0 s / d 1. The more close to 1 means a high human development index and vice versa.

Mixed Indicator
BPS: Susenas Core Welfare Indicators (Core NSES) Education: level of education, the literacy rate and the level of participation in education.

1. Health
average sick days, health facilities
2. Housing
sources of clean water and electricity, sanitation and quality of home
3. Labor force
labor force participation, Number of working hours, the main source of income, employment status
4. Family Planning and Fertilization
The use of milk, immunization rates, health attendance at births, contraceptive use
5. Economy
Levels of per capita consumption
6. Criminality
The number of thefts per year, the number of murders per year, the number of rapes per year.
7. Excursions
Frequency of trips per year
8. Access in the media
The number of newspapers, the number of radio and television sum