Ideally, economic development definition is associated with the concerted and sustained actions of policy makers and the community aimed at improving the overall economic health and standard of living in a certain locality. It is associated to the improvement of the citizens and increase in the living conditions, eventually leading to a just and free society. Generally, it is measured with the use of the Human Development Index which records the life expectancy and literacy rates, as these have a direct impact on productivity that leads to a sustainable economic development.
There are actually four common developmental factors linked to economic growth, to wit: agricultural, social, economic and political.
Making use of natural and energy resources, as well as having a developed agricultural system are just some of the basic elements which are included whenever economic development and growth are being talked about. Coupled with geographical location and other factors, a country’s economy will be given the appropriate breathing to be fully developed at such a low cost.
Proper investments in the development of assets like emerging industries and infrastructure are long-term keys for the development of economic activities. With industrial progress also comes technological advancement which is highly oriented from the different programs of the government. It is generally capital formation and accumulation that heightens industrial productivity, so economic development programs should never be taken for granted. The biggest role is in the hands of foreign investors but domestic capitalists should also never be underestimated.
According to economic development theories, the failure of economic development can be attributed to a lot of things and these include limited economic freedom, political instability, political corruption, poor macro and microeconomic management and limited market opening.
Economic Development Factors
In totality, successful economic development can only be achieved once the whole country is willing to put in their best efforts towards achieving specific goals. Different schools of thought have been advocating various theories on how it can be reached. In fact, a lot of economists have said that every nation should try and bring about industrialization and modernization first as everything else will just follow.
Over the years, a lot of correlation has been given to human development and economic growth. Their complex relationship can actually be explained by just one simple example. Consider the fact that economic growth is an essential requirement in obtaining economic development. If a household in the economy takes their livelihood from one horticulture firm, then growth in this sector will lead to business opportunities, spilling the effects on all the other aspects of the economy. Once the firm realizes an increase in profit, the money will be used to pay for improvement in health care and education for that family, eventually increasing the standard of living. If the same effect would be replicated in other households, then development will certainly be attained.
With all of these things in mind, we, at The Startup Expert ® believe that with economic development, the whole country will be affected as a whole. Contribute to overall progress by paying attention to your business. Contact us to know more.