Understanding Economic Development Concepts

Apr 24, 2025

Lecture Notes: Introduction to Economic Development

Overview

  • Relevance: Economic development is a significant component of both A2 macroeconomics and IB development economics courses.
  • Importance: The field is growing within economics, making it crucial for exams and understanding global economic science.

Definitions of Economic Development

  • General Understanding: Economic development is not a singular, precise concept but involves various aspects.

Key Contributors

  • Amartya Sen and Michael Todaro are pivotal figures in development economics.

Amartya Sen's Definition

  • Process: Development is a process, not a singular event.
  • Focus Areas:
    • Improving well-being and quality of life
    • Reducing poverty
    • Improving health and education
    • Increasing freedom and economic choice
  • Broad View: Quality of life involves more than just income; it encompasses a variety of factors.

Michael Todaro's Definition

  • Three Core Areas:
    1. Life Sustaining Goods:
      • Availability and distribution of essentials like food, shelter, and health.
    2. Standard of Living:
      • Access to education and decent jobs for material and non-material well-being.
    3. Freedom of Choice:
      • Social and economic choices to escape misery, prevent coercion, and enhance happiness.
  • Alignment with Sen: Both emphasize freedom of choice.

Key Takeaways

  • Understanding and being able to define these concepts are crucial for writing strong essays on development.
  • Normative Concept: Economic development cannot be defined neatly but can be guided by Sen and Todaro’s frameworks.
  • Exam Preparedness: Referencing these definitions can improve the quality of exam essays.

Conclusion: Economic development is multifaceted, and studying the perspectives of these key figures helps in achieving a comprehensive understanding.


Next Steps: Continue exploring the broader implications and applications of development economics in subsequent lectures.