The Chanllenge Of Economic Development

The challenge of Economic Development

As we all know our planet is plenty of people with very different living standards, there are 1 billion people living in absolute poverty, with few comforts, seldom knowing where their next meal will come from.
In our book there are some explanations for the population growth and development, it says that the economic analysis of population dates back tothe Reverend T. R. Malthus. He first developed his views while arguing at breakfast against his father’s perfectionist opinions. He argued that because land is fixed, while labor inputs keep growing, the supply of food would tend to grow by an arithmetic progression and not by a geometric progression.
When the law of diminishing returns is applied to a fixed supply of land, food production tendsnot to keep up with a population’s geometric-progression rate of growth. Actually, Malthus did not say that population would necessarily increase at a geometric rate. This was only its tendency if unchecked. He described the checks that operate, in all times and places, to hold population down.
This important application of diminishing returns illustrates the profound effects a simple theorycan have. Under the influence of Malthus’s writings, people argued that poverty should be made as uncomfortable as possible. In this view, the government cannot improve the welfare of the poor population since any increase in the incomes of the poor would only cause workers to reproduce until all were reduced to a bare subsistence.
In the last three decades, neo-Malthusian ideas have surfaced asmany antigrowth advocates and environmentalists argue that economic growth is limited due to the finiteness of our natural resources and because of environmental constraints.
What is the empirical evidence on the effects of resource exhaustion and environmental limits on economic growth? Rising oil, commodity, and food prices in the late 2000s worried many policymakers. The conclusion is evenmore sobering for externalities and global public goods such as global warming.
Well now we see, the land is limited and also our resources, if the countries doesn´t know how to use their resources they won’t be able to growth and improve their situation.
Let’s see now what exactly a developing country is. The most important characteristic of a developing country is that it has low per capitaincome. In addition, people in developing countries usually have poor health, low levels of literacy, extensive malnutrition, and little capital to work with. Many poor countries have weak market and government institutions, corruption, and civil strife.
These countries often have high native population growth, but they also suffer from out-migration, particularly among skilled workers. This kind oflife in the poorest countries of the world reminds us of the importance of adequate incomes in meeting basic needs as well as the fact that life involves more than market incomes.
The life expectancy obviously is greater in the richest countries than in the poorest, for example in  Sierra Leona, Uganda, Afghanistan, Mozambique, Nigeria and countries of that kind have a life expectancy of lessthan 50 years, while in the most developed countries like  Japan, Australia, France, Spain, Monaco, etc. the life expectancy is about 80 years. As you can see the difference between the ages is abysmal. And as the technology and resources are being utilized at the best way in every developing country is gaining more development and they are increasing their life expectancy.
There are fourimportant elements in development; the first one is the human resources, many poor countries are forever running hard just to stay in place. Even as a poor nation’s GDP rises, so does its population.


Under the first one, we found the human capital in addition to dealing with excessive population growth; developing countries must also be concerned with the quality of their human...