The Theory Of Economic Development Essay - 1477 Words

The theory of economic development has equipped the underdeveloped countries with a choice between ‘balanced’ and ‘unbalanced’ growth that has been one of the most tendentious topics. One group advocates the theory of Balanced Growth and refutes, in almost unequivocal terms, the virtues and utility of the doctrine of Unbalanced Growth, which the other group endorses with great insistence. These approaches towards economic development have been expounded and interpreted in various ways in the literature on the subject. In this discourse, I shall elucidate critically the major features of balanced and unbalanced growth as propounded by their corresponding proponents. Further, I shall discuss the position, potency and effectiveness of these strategies in India and South Korea. The doctrine of balanced growth lays emphasis primarily on the horizontal interdependence in consumption demand. According to this conviction, in order to maneuver through the stagnant levels of income and productivity in the underdeveloped countries to successfully initiate the process of development, it is essential to simultaneously invest in a number of projects spread over several supporting, mutually interdependent industries. An elaborate network of complementary enterprises could produce inducement for further investment by providing demand for each other’s output. This aspect of balanced growth theory received considerable attention from three developmental thinkers – Paul Rosenstein-Rodan,Show MoreRelatedThe Theory Of Economic Development984 Words   |  4 Pages With this inquiry I seek to establish the role of finance in economic development as presented by Joseph Schumpeter in his book, The Theory of Economic Development, [1911] The book analyzes elements that make up for economic development in a capitalistic society as viewed by Schumpeter. The elements mentioned include and revolve around the subject of finance. Finance is simply defined by investopedia.com as, â€Å"Finance is the science that describes the management, creation and study of money, bankingRead MoreRostows Theory of Economic Development1055 Words   |  5 PagesLECTURER: MR. MASINDE TASK: A DISCUSSION OF THE ROSTOW FIVE STAGES OF DEVELOPMENT GROPU MEMBERS NAME REGISTRATION NUMBER SIGNATURE NYABUTO MEPHINE BWARI E37/1523/2011 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ BARAZA A. DANIEL E37/1625/2011 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ LUMONYE FAITH JUMA E35S/11325/2010 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ DOUGHLAS NYAKUNDI E37/1509/2011 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ FREDDICK ACHACH E37/1614/2011 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Rostow’s five stages of Development This theory was written by Walt Whiteman Rostow. In 1960 he suggested countriesRead MoreWorld Theory And Wallersteins Stages Of Social And Economic Development731 Words   |  3 Pagesessay attempts to compare and to contrast the theories of Walt Rostows stages of social and economic development and Wallersteins world system theory. The Rostows five-stage model of economic growth and core-periphery concept of Wallerstein’s three-part world system theory are both used to identify a countrys development. Although they have similarities, there are differences between the two models. Rostows five-stage model emphasizes on the development process of countries. On the other hand, WallersteinsRead MoreA Brief Note On The Growth Theory And The Dual Sector Model Of Economic Development Essay3646 Words   |  15 Pages ENDOGENOUS GROWTH THEORY BY MARTIN RIITHO MAINA KCA 14/02073 A Term Paper submitted to Prof. Joseph Ongeri in fulfilment Of the requirements for the course Advanced Macro-Economics, as credit towards the degree of Master of Science (Finance and Economics) KCA UNIVERSITY November, 2014 â€Æ' TABLE OF CONTENTS Page 1.0 Abstract.†¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦.†¦..3 1.1 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.........................................4 2.0 Literature review: Models†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreThe Relationships Between Michael Porter’s Theory of Competitiveness and Economic Development of Nations, Regions, and Cities and the Economics of Innovation2350 Words   |  10 Pagesyears ago in his masterpiece â€Å"The Competitive Advantage of Nations† Michael Porter developed a model to analyze the competitiveness and economic development of nations, regions, and cities, a model that is still a milestone in this field of enquiry. In this work I will try to show how that theory about competitiveness is related with some important aspects of economics of innovation, also in the light of the already visible effects of globalization. Introduction I will first explain the effects of globalizationRead MoreDiscuss the Relationship Between Entrepreneurship, Innovation and Economic Development. What Role Do Creativity and Problem Solving Play in This Relationship? Refer to Both Theory and Examples from the Business World to Support Your Discussion.1637 Words   |  7 Pagesbetween entrepreneurship, innovation and economic development. What role do creativity and problem solving play in this relationship? Refer to both theory and examples from the business world to support your discussion. Entrepreneurship, innovation and economic development are linked to one another through different factors and characteristics of each other. Entrepreneurship â€Å"is the result of what entrepreneurs do and refers to events and their economic impact† (Lumsdaine E, Binks M 2007 P11). ThisRead MoreDiscuss the Relationship Between Entrepreneurship, Innovation and Economic Development. What Role Do Creativity and Problem Solving Play in This Relationship? Refer to Both Theory and Examples from the Business World to Support Your Discussion.’2397 Words   |  10 PagesDiscuss the relationship between entrepreneurship, innovation and economic development. What role do creativity and problem solving play in this relationship? Refer to both theory and examples from the business world to support your discussion.’ There are many links that bring together a relationship between entrepreneurship, innovation and economic development, and both creativity and problem solving play a large role within this relationship. Entrepreneurial activity can lead to innovation withinRead MoreEssay on Taking a Closer Look at the Modernization Theory1117 Words   |  5 PagesMODERNIZATION THEORY The invention of the concepts of development and underdevelopment is attributable to the former U.S. President Harry Truman, in a speech in January 1949, stressed the need to help the underdeveloped countries. In an international context of profound change following the Second World War and the process of decolonization that followed, the United States , then became superpower , proposed to establish a new world order in which the conflicting worldviews stand down mutual developmentRead MoreDeveloping Countries During World War II1547 Words   |  7 Pagestwo groups of economies increased eventually in addition to the increase in the rate of dependability amongst them. With the rapid growth in wealth and industrialization of the First World, only a few developing countries managed to have adequate economic growth on the line of the developed countries. Many of the developing countries which were poor at that time still remained to be poor today even today in comparison to the indust rialized nations. Dearth of capital and skilled labor produces a lowRead MoreAdam Smith Influence on Economic Theory Essay1655 Words   |  7 PagesWhy is the work of Adam Smith considered so crucial in the development of economic thought? Adam Smith is widely regarded as the father of economics as a social science, and is perhaps best known for his work The Wealth of Nations. Throughout this work Smith states and informs towards his belief that society is not at its most productive when ruled over by rules and limitations with regards to trade, and that in order for markets to maximise prosperity, a free trade environment should be made