importance of economy in a country essayaudit assistant manager duties and responsibilities
Report a Violation 11. According to Prof. W.A. Another important obstacle or constraint faced by the underdeveloped countries in their path of economic development is its poor rate of savings and investment. Rapidly growing population slows down the rate and process of capital formation. Thus by the term economic development we mean a process so as to raise the per capita output with a scope for equitable distribution. By technological advancement we mean improved technical know-how and its broad- based applications. Next, we use the estimated model to examine the empirical support for the view that interest rate . Prof. W.A. Knowledge of these investors about market opportunities and new techniques of production should also be enhanced to the reasonable level. (iii) Amount of capital or other resources for land. Moreover, in order to implement any developmental projects to the fullest extent and also to restrict the leakages involved in it, peoples participation and public co-operation are considered very important, especially in these under-developed countries. Global economy has many positive and negative effects. We estimate a New Keynesian small open economy model which allows for foreign exchange (FX) market frictions and a potential role for FX interventions for a large set of emerging market economies (EMEs) and some inflation targeting (IT) advanced economy (AE) countries serving as a control group. An Estimated DSGE Model for Integrated Policy Analysis All these social forces are obstructing the path of development of these underdeveloped countries. Inflation in these countries is influenced by the factors like monetary expansion, deficit financing, misdirection of savings in unproductive speculative activities, market imperfection: etc. Thus the vicious circle of poverty is resulted from various vicious circles related to demand side and supply side of capital. (c) international economic co-operation in the form of increasing flow of foreign aid from advanced countries like U.S.A., Japan etc. efficiency across countries and help in the development of underdeveloped countries. Essay on Indian Economy - Learn Cram Meaning of Economic Development: Essay # 2. Bangladesh is an agricultural country,with over three to fifths of the population engaged in farming. As underdeveloped countries have failed to fulfill these conditions thus their development process is neither self-sustaining nor cumulative. 1 500+ Words Essay on Indian Economy. The economy development of a country . Peoples desire for the attainment of economic progress is the most important requirement of economic development. Maintenance of law and order in a proper manner also helps the country to attain economic development at a quicker pace. For countries with significant levels of poverty, economic growth can enable vastly improved living standards. Pre-Requisites or Need 5. This has forced the gross output of these countries for less than the potential output. In order to meet such requirement, there should be sufficient transformation in the agricultural sector in the form of introduction of land reform measures, raising the supply of productive inputs or factors in agriculture, promoting new credit institutions, introducing dynamic market structure, providing additional incentives, arranging changes in socio-economic relationships, introducing intensive cultivation process. Moreover, the task of economic development is influenced by a number of factors such aseconomic, political, social, technological, natural, administrative etc. The rate of economic development and the level of per capita income increase as more and more work force shift from primary sector to secondary and tertiary sector. But the same share recorded an absolute and relative increase in the countries like USA, Canada, Italy, Japan, Switzerland and erstwhile USSR. These markets show development and flexibility which is a Here the real per capita income of a country simply indicates total money income adjusted to price level changes over time, i.e. Therefore, they must take proper steps, viz., introduction of compulsory deposit schemes, curtailing the conspicuous consumption, putting curbs on imports of consumption goods, inflow of foreign capital etc. What make a country grow and develop might refer to few major aspects, like business systems, technology issues, political issues, etc. As stated by the financial and economic In underdeveloped countries the problems are that of initiating and accelerating development., According to Maddison, the raising of income levels is generally called economic growth in rich countries and in poor ones, it is called economic development.. Again Prof. P.T. The importance of studying economics in today's world Economic development is considered as an important strategy for building various social and economic overhead infrastructural facilities along with the development of both agricultural, industrial and services sectors in a balanced manner. Here are five things you should know about the pivotal role of education in economic development: Education is an investment The importance of knowledge and learning has been recognized since the beginning of time. Thus in order to accelerate the pace of economic development the government must make necessary arrangement for the maintenance of law and order, defence, justice, security in enjoyment in property, testamentary rights, assurance to continue business covenants and contracts, provision for standard weights and measures, currency and formulation of appropriate monetary and fiscal policies of the country. Experimental outlook, necessary for economic development must grow with the spread of education. Importance of country's economic system - New York Essays Prof. Simon Kuznets has rightly observed that during the period of modern economic growth, the share of agriculture and agro-based industries in aggregate output (GDP) has recorded a sharp decline, while the shares of manufacturing industries, public utilities and certain service groups like professional, government etc. Prof. Gadgil also observed, All attitudes, habits of mind, patterns of behaviour, are born out of chiefly historical institutional modes of living. 3), Branches of Social Science (Assignment no. Thirdly, by the term economic development we mean continuous increase in the level of real national income over longer time period, covering a period, not less than 25 to 30 years. An indicator that measures growth is things like GDP, which measures the value of all final goods and services produce within domestic country in one year. Global economy also influences the world (Credit: John Colby/Flickr Creative Commons) What is a good and what is a service? Regarding the determinants of economic growth, Prof. Ragnar Nurkse observed that Economic development has much to do with human endowments, social attitude, political conditions and historical accidents.. Revenue generation: - Taxation is used by the government to raise revenues for its operations, infrastructure, welfare, education defense (Carnell, 2010). In the absence of public co-operation and participation, this development strategy cannot function properly. The Importance of economic analysis - UK Essays University of Arkansas, Fayetteville ScholarWorks@UARK The extent and pace of inter-sectoral transfer of work force depend very much on the rate of increase in productivity in the primary sector in relation to other sectors. Inappropriate social forces impeding the economic development of underdeveloped countries like India include prevalence of caste system, creating divergence between aptitudes, joint family system, peculiar law of inheritance, outdated religious beliefs, irrational attitudes towards number of children in a family etc. Pre-Requisites or Need for Economic Development: Essay # 5. to the increasing number of international transaction characteristics of banks, industries, Thus to achieve a higher rate of growth of national income, the country will have to take the following two steps: (b) to generate necessary forces for reducing capital-output ratio. Movements in structural transformations in economic growth can also be analysed in the form of changes in the distribution of labour force among three major sectors. Natural Resources and its Utilization: Availability of natural resources and its proper utilization are considered as an important determinant of economic development. The Importance of Technology in the Growth of Economic Environment of Developing Countries- Essay. Taxation can secure equity; the system can help view a mechanism to take money away from the private sector in as efficient, equitable . Global economy pertains to the interrelationships between the different economic Schultz has aptly observed, in most poor countries there is not much economic growth to be had by merely taking up whatever slack may exist in the way of the available resources being utilised. Therefore, in order to provide all outward push to the production frontier, the productive has to be expanded. In order to attain economic development in an underdeveloped economy, capital formation is considered as an important pre-requisite for development. In most of the over-populated countries of Asia and Africa, the rate of growth of population varies between 2 to 3 per cent which adversely affects their rate of economic growth and it is considered as the greatest obstacles to their path of economic development. Prof. Lewis has rightly observed, No nation is so poor that it could not save 12 per cent of its national income if it wanted to, poverty has never prevented nations from launching upon wars or from wasting their substance in other ways.. Another important obstacles or constraints to the path of development of underdeveloped countries are its inefficient agricultural structure. If anything is wrong with the policies, the people will be in a position to . Why economic growth is important Economic growth can help various macroeconomic objectives Reduction in poverty. Thus in order to attain economic development at a suitable rate, the Government of the country should make a choice of suitable investment criteria for the betterment of the economy. Moreover, capital formation requires the suitable skill formation so as to utilise physical apparatus or equipment for raising the productivity level. affecting a country's economic growth rate. (3) Propensity to initiate technical innovations, All these propensities are showing a clear-cut picture of determinants of economic growth neglecting the non-economic factors totally. Economic factors alone are not sufficient for determining the process of economic development in a country. Importance of economy in a country No doubt the economy is incredibly crucial for every country as it will make the state successful and prosper reliably. Content Guidelines 2. In order to attain a rapid economic growth, the rate of domestic savings and investment must be raised to 20 per cent. Moreover, market imperfections results factor immobility, under-utilisation of resources and thereby abstract sectoral expansion and the process of development. There may be three forms of technological advancement, i.e. Fairness concerns. Savings and investment patterns are considerably influenced by cultural and social considerations. (c) Utilisation of innovations on a large scale. Students shared 226 documents in this course, Global Governance and Global Interstate System, Artistic Skills and Techniques to contemporary Art creations, Contemp - Sorry i don't have any information anymore, Pure Capitalism & Market Integration (Assignment 4), Globalization of the Religion (Assignment no. Thus following are some of the important non-economic factors determining the pace of economic development in a country: It is the mental urge for development of the people in general that is playing an important determinant for initiating and accelerating the process of economic development. Economic growth is can be of importance because of the impact of growth in productivity. 1.1 What Is Economics, and Why Is It Important? The Importance Of Business Systems To The Country Economics Essay From the perspective of exporting firms and their governments in lower-income countries, finding ways to do more business with relational buyers has great potential for increasing profits and supporting firm growth. Inspite of having huge variety of natural resources, countries of Asia and Africa could not attain a higher level of development due to lack of its proper utilization. Countries like former U.S.S.R. and even U.S.A. and West Germany have achieved a rapid development through the adoption of economic planning. An economy is a broad set of interrelated production, consumption, and exchange activities that help determine how scarce resources are allocated. r = y/p where r = real income; y = money income and p = price level. Suppose the country is producing only two commodities A and B. Market imperfection is largely responsible for wide spread poverty in such economies. (Gerard J. Tortora), Theories of Personality (Gregory J. Feist), The Tragedy of American Diplomacy (William Appleman Williams), Calculus (Gilbert Strang; Edwin Prine Herman), Conceptual Framework and Accounting Standards (Conrado T. Valix, Jose F. Peralta, and Christian Aris M. Valix). Essay on the Economic Development of a Country Article shared by: In this essay we will discuss about the Economic Development of a Country. March 23, 2022 By Doreen Fagan This post was originally published March 27, 2019. Growing population also results food problem, unemployment problem which forced the country to divert its scarce resources to meet such crisis. 1.4 Indian Economy after Demonetization. Increasing pressure of working population on agriculture and other primary occupations must be shifted gradually to the secondary and tertiary or services sector through gradual development of these sectors. An economic essay is focused on educating, assist in decision making and inform the reader. 1. Being a technologically backward country, India has decided to permit foreign direct investment in order to imbibe advanced technology for attaining international competitiveness under the present world trade and industrial scenario. underdeveloped countries are very much concerned about their attainment of economic development. by reallocating resources from the low-productivity sectors to the high-productivity sectors. In 2019, the Philippines was one of the fastest growing economies in the world. Jacob Viner stated in this connection, Population growth in a backward country does not induce capital widening investment or innovation. Following are some of important economic and non-economic factors determining the pace of economic development in a country: Population is considered as an important determinant of economic growth. The Role Of Taxation In An Economy Economics Essay Planning is also essential for mobilisation of resources, capital formation and also to raise the volume of investment required for accelerating the pace of development. Economic development of a country also demands existence of a strong, honest, efficient and competent administrative machinery for the successful implementation of government policies and programmes for development. Finally, peoples participation and public co-operation in all developmental projects are considered as an important pre-requisite and a principal force behind all planned developmental schemes of the under-developed countries. Regardless of these disadvantages, we Determinants of Economic Development: Essay # 3. 1.1 Government's Role in Economic Growth. It uses to identify how they actually react to counter the economy environment. Moreover, under such a chaotic situation, capital formation process, business initiatives and enterprise of private firms are seriously suffered and distorted leading to a stagnation of economy in these countries. Developing countries tend to rely on the progressive nations for Examples include: the study of supply and demand or how regulations may affect a business' bottom line. Agricultural sector in these countries are suffering from primitive agricultural practices, lack of adequate inputs like fertilisers, HYV seeds and irrigation facilities, uneconomic holdings, defective land tenure and excessive dependence on agriculture. Center for East Asia Policy Studies. Developing countries like Mexico, Brazil and India have been applying technologies developed by advanced countries as per their own conditions and requirements. The Importance Of Taxation In Economic Growth - 2836 Words | Cram (i) Efforts to economise, either by reducing the cost of any product or by raising the yield from any given input or other resources, (ii) Increase in knowledge and its appropriate application and. Due to such uncertainty, flight of capital in considerable proportion takes place from these countries to advanced countries and also retards the chances of flow of foreign capital to these countries through foreign direct investment. Moreover, weak and corrupt public administration in these countries has been resulting a huge leakage of public fund meant for investment in developmental activities. After Weekend of Chaos in Russia, Questions Remain Over Fate of Wagner Due to these market imperfections, resources of these countries mostly remain either unutilised or underutilised leading to factor disequilibrium. infrastructure developments that leads the developed countries to restrain development The Importance of Technology in the Growth of Economic Environment of However, the factors that lead to immigrants' contributions to economic growth are complex and multifaceted. Although agriculture has its own importance and provides the basic necessities of life, but it alone cannot take a . Underdeveloped countries like India usually face this type of problem. Similarly, Britain has developed its industrial sector by importing some minerals and raw materials from abroad. world economic growth. After independence, these underdeveloped countries like India had to face serious obstacles to break this deep rooted impasse of low level equilibrium traps. The pursuit of service economy, which dictates the specialization in the service industries, is one of the newest economic concepts that ensure the realization of the economic growth. Attainment of economic development necessities a suitable environment for initiating, maintaining and accelerating the pace of economic development. Secondly, attainment of economic development indicates increase in real per capita income over time. Thus Prof. Ragnar Nurkse has rightly observed, The meaning of capital formation is that society does not apply the whole of its current activity to the needs and desires of immediate consumption, but directs a part of it to the making of capital goodstools and instruments, machines and transport facilities, plant and equipment.. positive manifestation for the world economy. Free trade, increased, migration of the labour force which can help in reducing unemployment in a certain, area, and increased economies of scale and labour are just some of the benefits we can, infrastructure developments that leads the developed countries to restrain development, affecting a country's economic growth rate. Determinants of Economic Development 3. Thus this dearth of critical skills and knowledge in these countries has resulted under-utilisation and mis-utilisation of physical capital leading to lower productivity and higher cost structure of the production system. T.W. What is the Importance of Tourism to Country's Economy? Obstacles or Constraints 4. These Constraints on the path of economic development are of two types: These short-term constraints are related to over concentration and stagnation in agricultural sector, unemployment and under-employment, low productivity of capital, the growing deficit in its balance of payment position etc. Mere possession of natural resources cannot work as a determinant of economic development. There were certain disequalising forces operating in the world economy which made the gains from trade go mainly to developed countries. Moreover, removal of market imperfections is also an important determinant of economic development of underdeveloped countries. It is a world In this connection, Meir and Baldwin aptly observed, New wants, new motivations, new ways of production, new institutions are to be created if national income is to rise more rapidly. It is a system of industry and trade A number of public and private companies operate in an industry, which may manufacture the same goods or provide the same services, but follow different . It is a system of industry and trade, worldwide that has commenced because of globalization. But the capital output ratio in a country is also determined by stage of economic development reached and the judicial mix of investment pattern. In order to attain a self-generating growth of the economy, the people of the country must have a strong and positive willingness to attain such development. In this connection, united Nation Experts observed, Economic Progress will not occur unless the atmosphere is favourable to it. Goods have a physical tangible presence, for example, a pizza or a scissors. If the ratio of the working-class population and the scopes of jobs are in balance, you can expect the economy of a country is well balanced. Secondly, the production frontier, i.e., the various productive sectors, has to be widened through sizable changes to the maximum extent. Moreover, the shift away from agriculture to non-agricultural activities has also resulted a significant fall in the share of small business units. Demography: The primary lifeline of a nation's economy is demography. put severe obstacle on the path of economic development and also retards its pace.
