Economic Development Economic Analysis

Contemporary development economic theories agree that in general that economic development is enhanced only when Per Capita GDP growth rate is reasonably increased and sustained. Thus, from the policy making standpoint, economic development is a policy intervention targeted at attaining egalitarianism or improved social well-being of the people. The globalization of the concept of economic development originated in 1949, following the end of World War II, since then, the concept has gone through many phases culminating in the 1980swhen erstwhile industrial capitalism and market economy patently pushed forward the frontiers of traditional economic theories. From the institutional and good governance perspective, Adimmadu (2015) argued that

Institutions operate with specific rules and procedures that lower transaction costs and inspire confidence by certifying the range of potential outcomes. High quality institutions support productive activities and encourage capital accumulation, skill acquisition, invention, and technology transfer (North and Thomas 1973). Rosenberg and Birdzell (1987) highlight how the development of institutions conducive to capitalism was a driving force in How the West Grew Rich. Two points about institutions are relevant to solidifying our understanding of economic development. First, there is no single institution, such as the legal system or property rights that supports economic development. What matters is an underlying capability and orientation of the social and economic organization of a society, especially the capacity to instill confidence in the future. Formal and even informal institutions create predictability and order that allow individuals and businesses to make investment decisions. Second, institutions are endogenous – that is, they are the product of history, culture and historical accidents. Institutions evolve in unexpected and idiosyncratic

A good economic performance guarantees growth and development. Literatures in social sciences, specifically in political science is filled with interchangeable phrases and sentences on economic growth and economic development. The confusion stems from the fact that most political scientists and social scientist alike use the determinants of economic growth to measure economic development, that most often when a nation GDP, GNP and Per Capita grows or increases, they assume that the it has achieved economic development but still astonished why poverty , unemployment and inequality continues to persist. The idea of seeing economic development from the prism of growth model has made most policy and decision makers in developing countries to pursue growth inducing policies instead of development inducing policies, thus, growth have occurred in these countries at one time in their history but vanishes immediately there is a little shock because of lack of sustainability. For instance, the Nigeria economy grew during the oil boom of 1980s but because economic development did not occur simultaneously, the growth vanished within the little period of time that Buhari’s military regime came to power with its unfavorable economic