Economic Development (Research report)

5. Social Opportunity Costs

, As rise in per capita income is accorded, as economic, development, but during such rise in GNP or GNP per capita, a common man has to suffer; there may be the distortions in the family life; there may be the tensions and tortures; there may be the mass environmental pollution and traffic noises etc. This shows that the rise in per Capita income is furnished with a deterioration .in the quality of life. In other words, the society will have to bear the greater opportunity costs of rise ip GNP per capita. Thus in such phenomenon the economic growth’ will be taking place instead of economic development. '

6. Nature of Output Produced

The criterion of rise in per capita income does not consider the nature of output produced which has led to enhance the GNP per capita. As. if in a country the GNP rises due to greater production of military hardwires; more production of alcohol; and a greater production of palacious houses ____ it will not represent economic growth. Because the plenty and. abundance has not benefited' a common man. The rich segment of the society has gone more rich while the poor section of the society has further gone poor.

7. Practical Failure

The period, of 1960 was accorded as a period of" Development Decade whereby it was conceived that for the sake of development, GNP must be increased by  6% annually. Accordingly, a ruthless craze developed amongst the countries to attain a 6% rise in GNP. But during such 'craze the problems of poverty, unemployment and income distribution were igl1ored. Then the economists and Policy markers emphasized upon  “Dethr9nement of GNP". Despite the rise in GNF by 6% per annum the unemployment, diseases and environmental pollution could 'not be removed. The income distribution could  not be made fairer; the. Infant mortality rates could not be I decreased; the water supply and water sanitation facilities could .pot be enhanced; the I illiteracy collide not 'be decreased; and social injustice could pot be removed in majority of the developing countries despite rise in GNP and GNP per capita. Dr Mahbub-ul-Haq who once said," First make the cake and then divide it" brought the change in his thinking when he wrote an article" Employment and income distribution  in 1970s". He said, " The economic development should launch a big war against worst type of , poverty. The developmental goals should be expressed in the removal of poverty, diseases, malnutrition, unemployment illiteracy etc. We were taught to take care of GNP and it will take care. of poverty. But now it, should be reversed. We should have an eye on poverty because. it will take care of GNP. In other words, we should B_ worried of components of GNP, rather growth rate of GNP. Accordingly, in 70s a change in emphasis occurred amongst economists and policy makers____the  Redistribution from Growth" where it was considered that along with increase in GNP per capita, the" economic welfare should also be entertained. As the ecumenists like Gunner Myrdal  and Lebinstein etc. are of the' view that to measure economic development the criterion of economic welfare by employed.