Economic development is a process whereby an economy's real national income as well as per capita income increases over a long period of time. Here, the process implies the impact of certain forces which operate over along period and embody changes in dynamic elements. It contains changes in resource supplies, in the rate of capital formation, in demographic composition, in technology, skills and efficiency, in institutional and organizational set-up. It also implies respective changes in the structure of demand for goods, in the level and pattern of income distribution, in size and composition of population, in consumption habits and living standards, and in the pattern of social relationships and religious dogmas, ideas and institutions. In short, economic development is a process consisting of a long chain of inter-related changes in fundamental factors of supply and in the structure of demand, leading to a rise in the net national product of a country in the long run.
According to Prof. Meier and Baldwin; "Economic development is a process whereby an economy's real national income increases over a long period of time". This definition explains three ingredients of economic development. a) process, b) real national income, c) long period. Prof. Colin Clark defines economic development from the angle of economic welfare. In his own words, "Economic progress can be defined simply as an improvement in economic welfare." Economic welfare can be defined in the first instance as an abundance of all those goods and services which are customarily exchanged for money. Leisure is an element in economic welfare and more precisely: "We can define economic progress as the attaining of an increasing output of those goods and services for a minimum expenditure of effort, and of other scarce resources, both natural and artificial". In the end we may give a simple but comprehensive definition of economic development which runs as, "Economic development is a continuous process which has to be extended over a long period of time so as to break the vicious circle of poverty and lead a country to a stage of self-sustaining growth or to self-generating economy”. Thus, we can conclude that economic development is a process rather than the result of it which results in a rise in real national income, and the net national product must have a sustained increase i.e., it must be over a long period of time. Economists have been trying to understand economic growth and development since Adam Smith and David Ricardo in the eighteenth and nineteenth centuries, but the study of development economics as it applies to the developing nations has a much shorter history. The new field of development economics asked simply: Why are some nations poor and other rich? If economists could understand the barriers of economic growth that prevent nations from developing and the prerequisites that would help them to develop, economists could prescribe strategies for achieving economic advancement.
Industries experience cycles of economic growth and contraction based on many factors. These include the overall health of the markets, consumer preferences and even seemingly unrelated world news and events. Although some companies perform better than others in their industry, the global factors that affect the industry as a whole must be contemplated when planning to start or grow a business. The process of economic growth is a highly complex phenomenon and is influenced by numerous and varied factors such as political, social and cultural factors. As such economic analysis can provide only a partial explanation of this process. "Economic development has much to do with human endowments, social attitudes, political conditions and historical accidents. Capital is a necessary but not a sufficient condition of progress" according to Prof. Ragnar Nurkse an international economist and policy maker mainly in the fields of international finance and economic...
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