Underdevelopment is a macro-economic term used to describe the underdeveloped countries/economies in the world. Underdevelopment usually suggests unusual potential, i.e, an economy that has not developed as it could, or an economy that has a long way to go in achieving full capacity. An undeveloped country is a country with good prospects for using more capital or more labour, or more available natural resources, or all of these to support its present population to achieve a higher level of living standard. It is important to note that Underdevelopment is a relative concept. It makes sense only by comparison.
Consequently, laborers become an object and lose their humanity. Labor “made real” “makes unreal” the laborer. The products become more valuable than the person that produce them. In The Fetishism of Commodities and the Secret Thereof, on the other hand, Marx points out some scientific information that criticizes how the laborers go unseen. “The mystical character of the commodity does not therefore arise from its use-value.
The paper begs to differ from the utilitarian approaches by saying that a persons ' capability to live a good life is defined by his functions, being and doing, not just defined by the accessibility and ownership of resources. It explains that any social changes are evaluated under its richness of human life, its valued activities and capability to achieve those activities. The capacity is also determined by ones freedom and Karl Marx claims," Domination of circumstances and chance over individuals by the domination of individuals over chance and circumstances." Many times people are deprived of commodity based needs which are taken into account but fail to encounter the utilitarian values. The mental conditions of how those people feel are often neglected.
This section identifies and organizes recent empirical research that examines economic growth’s relationship with immigration, human capital, industry and development of technology. In theory, economic growth and development are different concepts. Growth and development often occur simultaneously, however, in the long run, growth and development may indicate different goals: growth emphasis efficiency at the moment, while development emphasizes sustainable and progressive change. Growth means more output (sometimes more input or higher efficiency), while development implies both increase in output and changes in the technical and institutional arrangements by which it is produced (Kindleberger 1958). As Shaffer et al stated, although the two
In economics, growth is mean by the increases of long-term capital per output of a country. Changing in technology is one of the major factors that impact the economic growth. In the growth of long-term, the economic environment of improving the technology can affect the productivity by more or lesser efficiency. Technology is defined as the production, qualification, utilization, and instruments of information, machines, strategies, frameworks, and techniques for association to solve the issue, enhance a previous answer for an issue, or accomplish a goal (Boundless, 2016b). The government of a developing country attempts to guarantee that the advances, aptitudes, learning, and strategies for assembling are tried and grown with the goal that
This essay focuses on the negative and positive effects of population growth on economic development. NEGATIVE EFFECTS OF POPULATION GROWTH ON ECONOMIC DEVELOPMENT Government resources are limited, so population growth is seen as using up those limited resources on unproductive investment such as providing for the dependent population
This is due to their inelastic nature and lack of ability to generate effective demand. Primary products were said to be income and price inelastic, meaning that people would not demand more of them as incomes grew and changing prices would not necessarily have a matching change in demand. His analysis was based on a study of Latin American countries, which specialize in primary products and tend to be hit the worst in periods of crisis. Prebisch (1950) made three main observations: • There is a lower income elasticity of demand for primary products compared to manufactured
Introduction Unemployment and inflation are key components which can cripple the growth of a country, causing a negative impact on a countries’ economic activities. An ideal economy is where there is low unemployment and low inflation rates in a country. However, such economical balance is not always consistent, thus affecting the stability of the economy. One of the key functions of a government is being a solution provider and create a safety net with visionary leadership skills for the people to overcome the economic crisis. In such circumstances, both government and the people have to work together in implementing demand side policies comprising both expansionary and contractionary fiscal and monetary policies which would help to stimulate
As explained before, at the present time, it will lower both private consumption and investment which result in lower real GDP and slower economic growth. Not only that, it will also decrease government income from tax as well as increasing government spending on unemployment benefits. In the future, if youth unemployment is not being addressed properly, it would lower the production capacity utilization of its country and the production point will move further from the PPF (shift inward). Moreover, it will also degrade the quality of labour force as well as increasing the quantity which will result in a surplus of labour. Prolonged youth unemployment will move the macro-equilibrium to the left as the aggregate demand curve shifts to the left.
Willingness on the part of consumers to pay for ‘demerit goods’ Inequality of power in the market. Open merchandise may not be accommodated in Market economy; accordingly the legislature will need to meddle to give these sorts of products. Market economies empower utilization of destructive products Costs are controlled by the interest and supply of merchandise. Social expense may not be considered while delivering merchandise and services. It may prompt unemployment on the grounds that machines will be more profitable than men.