Economic Development and Planning

The study of economic development and planning centres around the fact that the well being of the people of a country hinges on it. It is the surest way to making life exceedingly easy for the entire citizenry and a country has got no better choice than to pursue it.

• Issues on economic development, economic growth and development planning

MEANING OF ECONOMIC DEVELOPMENT

Economic development is not the same thing as industrialisation and national development. While industrialisation is part of the process or characteristics of economic growth, national development covers economic development, social development and political development.

Economic development is the process in which the level of national production or the level of national income and the per capita income rise over a long period of time.

Economic development aims at raising the standard of living of the people and improving their welfare.

TheThe national production or national income is not enough to determine economic development. The per capita income over a long period of time is a very good yardstick. The point here is that the national income must be related to population to really determine the standard of living or the level of general well being of the people.

Moreover, the changes or increases in the per capita income must be sustained for a long period of time. Anything short of this is not the same thing as economic development.

In the world today, there is the case of 'developed'and 'developing' polarization among nations. The developed nations are the ones that are advanced in term of economy, technology, national income, per capita income and standard of living. They include U.S.A,Japan, Germany, British, France and so on. On the other hand,the developing nations are the ones which economies,levels of technology, levels of national incomes,per capita income and standard of living among others are relatively poor. All West African countries fall under this category. By extension, all African countries with the exception of south Africa fall under the category.

• DIFFERENCE BETWEEN ECONOMIC DEVELOPMENT AND ECONOMIC GROWTH

Economic growth implies more output per head as a result of more input and more efficiency. The output per head determines the standard of living in a country. Countries worldwide get preoccupied with horrendous efforts directed towards raising the rate of economic growth. This is a reflection of the desire of people in different countries to raise the level of there well being. Economic growth is usually influenced by different factors which include:

• The skills and efforts of the labour force

• The rate of investment

• The type of investment

• Technological progress

• Availability and extent of the exploitation of natural resources

• The persisting climate in the trade relationship with other countries

• The extent of specialisation

• Social and religious organisation as in the qualities of the people's character

• Government policy

• Development planning

• A special stress on industrialisation or the development of manufacturing industries as against agriculture.

• Reduction in the level of dependence on foreign products in favour of locally made ones.

• Rural-urban drift in which the labour moving into urban areas are easily getting fixed up for employment.

• Elimination of the condemnable land tenure system which has made the acquisition of land for industrial use by people difficult.

Now, economic growth is a stepping stone to economic development. Without economic growth,it will be difficult for a country to attain economic development. Economic growth rate is usually measured through per capita income. The percentage by which the per capita income rises is the percentage by which economic growth take place. On the other hand, economic development is said to have taken place when there have been series of sustainable increases in the national production or national income and the per capita income in particular over a long period of time.

In summary, economic growth means more output per head as a result of more input and efficiency while economic development means more output and changes in the technical and institutional arrangements, changes in the structure of output and changes in the allocation of inputs by the production sectors.

• CHARACTERISTICS OF A DEVELOPING ECONOMY

1 Resource underutilisation

2 low level of technology

3 poor state of infrastructural facilities

4 High rate of population growth

5 High rate of unemployment and under employment

6 Over dependence on importation

7 Dependence on agriculture

8 Low per capita income

9 unfavourable terms of

10 High rate of inflation

• PROBLEMS OF ECONOMIC DEVELOPMENT

. Shortage of capital

. Political problems

. Low level of technology

. Low level of manpower development

. Low level of literacy

. Poor infrastructure facilities

. Over dependence on government initiatives

. High rate of population growth

. High rate of inflation

. Land tenure system

. Poor storage facilities

• HOW TO ENCOURAGE ECONOMIC DEVELOPMENT

. Investment in research and development

. Increased investment in manpower development

. Increased emphasis on scientific and technological development

. controlling the problem of brain drain

. Diversification of the economy

. Export promotion

. Encouraging political stability

. Development planning

• DEVELOPMENT PLANNING

• FEATURES OF DEVELOPMENT PLANNING

• REASONS FOR DEVELOPMENT PLANNING

• PROBLEMS OF DEVELOPMENT PLANNING

Coming soon.