The Traditional Approach : Growth has a sort of an in-built tendency to bypass those very people in the economy who deserve to be supported the most by it.Economic development, on the other hand, by directly attacking economic misery, ensures that the benefits of the increase in the productive capacity actually reach the masses. (1) Increase in real GNP, (2) Increase in real per capita income, (3) The figure regarding outputs and incomes are mostly true. have an eye on poverty because it will take care of GNP. We suppose that in case of Pakistan, the nominal GDP grew The rapid changes caused by the Economic Development, on the other hand, adopts a more The gains that accrue from economic development are far more sustaining than those made from growth, simply because of the differences in the way the future of the to-be-introduced projects are anticipated, analyzed and appreciated. Objectives of poverty elimination, reduction in economic inequalities and employment generation are mentioned in passing reference only and in most cases it is assumed that rapid gains in overall growth in GNP or per capita national product would trickle down to people in one form or the other.Jacob Viner was probably the first economist who in the early 1950s argued that it was not correct to claim that a country was achieving economic progress as long as the incidence of poverty in the country had not diminished. broad. CHAPTER 2 APPROACHES TO ECONOMIC DEVELOPMENT 2.1 INTRODUCTION This chapter provides an analysis of international literature on economic development. (A) Traditional Approach The Classical and Neo-Classical economists took national income as a criterion for measuring economic development.
Critical Approach. But they want to increase national some verdict about the level of development.Furthermore, it may also happen that GNP of a country increases but a minor trend to conceal the incomes and outputs on the part of earners and producers. If one or two of these central problems have been growing worse, especially if all three have, if would be strange to call the result ‘development’ even if per capita income doubled.This line of argument is based on the practical experience of a number of third world countries. given the name of dual economy. Hence, within a few years, the increased capacity would lay wasting leading to a wastage of scarce resources. along with increase capita GDP (y) will be as:This shows that the growth rate of per capita real GDP is equal to the rate If the above mentioned irrigational project was approached from the development point of view, its site would be either changed, or its dimensions altered to prevent natural environmental harm; and if there is any sort of social environmental damage, like displacement of the inhabitants, then, rehabilitation projects would be undertaken, in consultation with the affected people.Economic growth’s, primary goal is to increase the productive capacity of the economy massively, irrespective of whether or not the poorer sections would benefit from this higher capacity. Solve related Questions. But during such majority of masses remains obstructed.
The aim is to highlight major approaches to economic development in a historical context. Although his views deserved greater attention, yet they failed to receive any support until the beginning of the 1970s.In the early 1970s, however, having realized that about 40 per cent of the developing world’s population had not benefited at all from the rise in GNP per capita and structural changes in the economy during the 1950s and 1960s, many economists called for the rejection of the narrow definition of economic development.During the 1970s they redefined the concept of economic development in terms of the reduction or elimination of poverty, inequality and unemployment within the context of a growing economy.
Todays “modern” approach will be tomorrows “traditional” approach.
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