4.1 Economic development
|You need to be able to:
Syllabus: Distinguish between economic growth and economic development.
Economic Growth is a subsection of Economic Development
In other words Economic Development is to do with all aspects of the quality of life including standard of living (GDP). Economic Growth is only about the standard of living (GDP - Goods and services) of the people in the economy.
According to the IB Syllabus you need to be able to:
Explain that Economic Development is multidimensional (and covers these areas)
- reducing widespread poverty,
- raising living standards,
- reducing income inequalities
- increasing employment opportunities.
Explain that the most important sources of economic growth in economically less developed countries include increases
- in quantities of physical capital and human capital,
- the development and use of new technologies that are appropriate to the conditions of the economically less developed countries
- institutional changes
Syllabus: Discuss the relationship between economic growth and economic development, noting that some limited economic development is possible in the absence of economic growth, but that over the long term economic growth is usually necessary for economic development (however, it should be understood that under certain circumstances economic growth may not lead to economic development).
Note the command word included in the syllabus statement so a Data Response Qd could be about this discussion
Q3d: Using information from the text/data and your knowledge of economics,
discuss the main challenges facing Ivory Coast as it seeks to achieve
economic growth and economic development. [8 Marks]