Monday 10 October 2011

Economic Development (Research report)


(2) ECONOMIC 'DEVELOPMENT BASIC' NEEDS APPROACH OR PHYSICAL QUALITY OF LIFE APPROACH


            the measure economic development the traditional approaches are concerned with, (1) increase in GNP, (2) increase in per capita GNP. But with the passage of time a dissatisfaction developed against these measures. Rather these measures, it was emphasized to use the measures of “ Employment and Distribution.”
            But so many economists are of the view that criterion of Increase Employment is not a suitable index of economic development. If is so because that the unemployment which is found in UDCs is different form that unemployment which exist in DCs. Therefore, it will be least attracting to attack economic development with increase in employment.
In the same way, to link 'Redistribution of Income' with economic development may not be accepted a_ it rimy happen that poverty is existing in a country despite equal distribution of income, or unequal income distribution is co-existing with fall in absolute poverty. In such state to affairs the economic development would require the abolition of absolute poverty and adversity, which could be possible only if people get the 'Basic Needs' of life. Therefore, the economists us the criterion of basic needs to measure economic development. According to this approach if" people are in a position. to avail more amount of food, have better access to educational facilities, and have' . greater command over the civic amenities’ like water supply, water sewerage, health care and shelter etc. All such would represent. economic development". Therefore, according to this approach whether GNP and per capita GNP increase or not, whether a ' fairer distribution of income is made or not, the re_ matter lies with the 'Provision Of Basic Needs or facilities, to the people'. This index identifies the components of the produced goods and the segments of the society which are benefited by such goods and services. Therefore, if people fail to get more goods and services even GNP has gone up, it wiI1 not represent economic development. Therefore, for the sake of economic development we shall have to make such a measures whereby the availability of basic needs to the masses could be made sure. Accordingly, to measure economic, development we will have to select those measures which are consumed with the basic needs, 'despite certain differences. As in case of country like Pakistan' the' supply of doctors is increasing, but a common man fails to get medical facilities as the doctors are reluctant to go to, small cities and villages, and majority of the doctors and medical services remain 90nfine to big cities. In such situation, the increase in doctors and medical services will be of least benefit to the common men. Again, if the infant mortality rates are decreased in cities. while such II}.ay not occur in case of rural areas. Moreover, if in so many countries it is stressed upon to enhance education facilities but the educational system is not made effective, the defects of educatiof!.a1 system are not removed and the ratio of students to teachers is not improved _ in such situation just expansion in educational facilities can not be accorded as an indicator of economic development. Thus, in spite of lot of flaws, in the indicators of increase in education, Health, "water supply, level of calories and shelter, this .measure ,of 'economic. Development presents a realistic picture of economic development than GNP, GNP per. Capita GNP redistribution method These measures represent the determination, on the part of govt. regarding supply of social services. Thus, the basic needs approach presents a better explanation to remove poverty than the "Redistribution Theory




Thus in the basic needs approach; the following aspects are analyzed:
        (1) How much goods and services are produced?                                                              
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        (2)      What goods. Ana services are being' produced?
        (3)' How goods and services are being produced?                           
        (4)      What -will be the effects of production and distribution on the society?                
This shows that in this theory the 'Amount of goods and services' is of crucial Importance and the increase in the quantity of goods. and service§ will help in removing poverty. The increase in GNP per capita represents the rise in standard of living. 'But the criterion of Basic Needs tells us what are the components of GNP and which segments of the society have utilized such components. This approach works like social indicators of economic development. We will have to define some better indicator for each bias need. Basically, the more important needs are concerned with the provision of foods, basic education, health services, water supply, water sewerage, residential facilities and infra-structure.
   On the basis of stipulated indicators regarding Basic Needs, we can make a comparison between the countries. These indicators or measures will reflect the relative difference between the rich and the poor countries. Moreover, with these measures we are non serious. Thus according to the proponents of the Basic Needs approach to economic development, following indicators can become helpful to measure economic development.

1.         HEALTH STANDARD. Here it is considered (1) the life expectancy of the citizens of the country, (2) the infant mortality rates in the country.
2.         EDUCATION LEVEL. Here it is considered the 'Literacy Rate' in’ the country.
          Moreover, what is the enrollment ratio at primary level?                           .
3.         FOQD AVAILABILITY. Here it is considered, that what is per capita food
          availability in the country.                                                
4.         WATER SUPPLY. What is the percentage of the population, which is getting
          The facility of water drainage etc.,
5.         WATER DRAINAGE. Here it is assessed that what is the percentage of the, population which is getting the facility of water drainage etc.
6.         SHELTER AND RESIDENCE. Here its estimated that what is the ratio of the .population who are having suitable shelter and residences.

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