Economic Development (Research report)

1-WHY ECONOMIC DEVELOPMENENT?

In tile 17th century 1ere eti1erged Industrial Revolution in"EuropC'acc9mpanjed by a wider use of machines rather manpower; title was a chain of sceneries and the production increased many a timing the economies like UK, France and Germany. Afterwards this process- of change spread over to US and" Japan etc. But the effects of me Industrial Revolution could not spread allover the’ world, particularly the countries if Asia, Latin America "and Africa failed to get the benefits of the industrial revolution, 1bey remained entrapped in the clutches ",of poverty and hunger. In this. way, on economic grounds, the-world divided into two parts. On the one si51_ there were those countries where the incomes, output and employment went Or) rising. .Such countries ire given the name of Developed Countries. On the other side, there were th9Sc: countries which were furnished with poverty: illiteracy, diseases, unemployment, low incomes and low output levels. Such countries were. given the name of Less ,Developed or Backward Countries. All this means that in the world on the one side. there is Nqrtl1 Pole of Affluence and on the other side there is South Pole of Wretchedness. This is the reason that the rich countries ate called North while the poor countries are C3lled South. Till a time type poor countries dig not notice’ of their poverty. They considered their poverty, hunger, starvation_ and diseases as something national. But after World war II when the colonialism broke the newly independent countries thought for a change to get the benefits of industrial development; improve the standard of living of their masses; and remove illiteracy and unemployment. Thus after World War II, the' Desire to Change rose amongst the poor nations of the world.- It was the  international media which played an important role in the motivation for change. The radio, films, newspapers journals and magazines created awareness amongst the people of backward nations of the world. They came to know about the life standards of the people residing in the  developed countries. Moreover, the foreigners who lived in the British and French colonies also created  some inspiration for change amongst the local population. With  these factors the initiative for Better Change have had its start. Accordingly, the poor nations of the world are engaged in the removal of poverty, employment, economic stagnation, starvation and environmental pollution. Bur the poor nations of the world cannot allocate such a long time to remove such all problems. Moreover, the socio-economic setup of the developing countries does not demerit for the rapid change. But despite such all obstacles and problems the less _-eloped countries are over-ambitious to develop their economies, as soon as possible, particularly in the situation where the international inequalities are rising day by day. If we draw a line of demarcation between the poor and the rich countries 'Of the world at $500, it means that the nations whose income per capita is below '$500 are the poor nations while the countries whose income. per capita is above $500 are the rich countries. Such fact reveals that 20% other wor1d_s population controls over. 70% of the world' s income and the major part of such moon) is taken away by the population residing in the West While 80% of the world population which resides in Asia, Africa and Latin America just commands over' 3O%'of me world income. : moreover, not only the rich countries take away a lion's share of the world. incomes, but the gap in respect 1 of income distribution at the world level is also increasing. There are twenty four J countries in. the. world whose per capita income IS in between $100 and $500; 19 countries have the per capita income in between $500_and $1000; and there are 26 countries whose per capita income is above $1000. Such disparities in rl1e distribution of income  represent Development Gap., The development gap hot only rises due to difference in growth of incomes; but the basic differences in income levels are I. .Responsible for such development gap. . It is explained as : ' We suppose that. developed country is represented by country A whose per capita income is.$I000 I          annum.' While a poor country is represented by country B whose per capita incomes $1000 per annum. If per capita income of both of these countries A and B increases, 2%, then. After one year the per capita income of the country A will move to $1020:11 that of the country B will move to $102. The basic gap between A and B which was $900 went to $918. Therefore, if a poor country wishes to remove such development gap of $900 its per capita income should, increase by 20% per annum. .For this };the poor country will have to allocate a major share of its resources to enhance _ capita' income. "But the Poor countries lack the resources both the physical as financial. As a result in such countries the level of income remains obstructed. ­Moreover, in such poor countries there is big population pressure which is offs the smaller increase in per capita and national income. Thus in such state of affairs, the poor. Countries remain backward, less developed and under developed. With this background we firs differentiate between development and growth.