There are many other organizations whose primary function is not economic development, working in partnership with economic promoters. This includes news media, foundations, public services, schools, health care providers, religious organizations, as well as colleges, universities and other educational or research institutions. But economic development is much broader and includes elements not normally associated with the economy, such as welfare, early childhood education and criminal justice reform. Economic development has become a professional industry of highly specialized practitioners. Practitioners have two key roles: one is to take the lead in policy development, and the other is to manage policies, programs and projects. Economic development practitioners typically work in public offices at the state, regional, or local level, or in public-private partnerships, which may be partially funded by local, state, or federal taxes. These economic development agencies function as individual entities and, in some cases, as ministries of local government. Their role is to seek new economic opportunities and maintain their existing business heritage. Simply put; Economic development is about improving living standards. “Improved living standards” refers to higher levels of education and literacy, income, health and life expectancy of workers. Gender Development (GDI) measures the gender gap in human development. It takes into account inequalities between men and women through three variables: health, knowledge and standard of living. [35] Many different groups may work in the field of economic development, including: Using the Strategic Planning Toolkit to Develop a Long-Term Economic Development Plan During development, there is a shift of population from agriculture to industry and then to services.
European development economists have argued that the existence of modern transport networks such as high-speed rail infrastructure is an important indicator of a country`s economic progress: this perspective is illustrated in particular by the Core Rail Transport Infrastructure Index (known as the BRTI Index)[31] and related models such as the (modified) Rail Transport Infrastructure Index (ITI). [32] It may seem like a fairly important project to try to improve a country`s social and political well-being through economic policies, and it is. That is why it is important not to try to solve everything at national or international level, but at local and regional level. In this context, economic development is generally associated with improvements in various areas or indicators (such as literacy rates, life expectancy and poverty rates) that may be causes of economic development rather than consequences of specific economic development programmes. For example, improvements in health and education have been closely linked to economic growth, but causality with economic development may not be obvious. In any case, it is important not to expect that some economic development programs will solve several problems at once, as this would create insurmountable objectives for them that are very unlikely to be achieved. Any development policy should set itself limited targets and a phased approach to avoid falling victim to what Prittchet, Woolcock and Andrews call “premature sustainability”. [20] While economic development is a policy intervention aimed at improving people`s well-being, economic growth is a phenomenon of market productivity and GDP growth. Economist Amartya Sen describes economic growth as “one aspect of the process of economic development.” Economists focus primarily on the growth aspect and the economy as a whole, while municipal economic development researchers also focus on socio-economic development. Economic development work requires a strong municipal foundation.
Three principles for the success of your economic development activities are: In economics, the study of economic development arose from an extension of the traditional economy focused solely on the national product or total production of goods and services. Economic development aims to expand people`s aspirations and skills, morbidity, nutrition, literacy, education and other related socio-economic indicators. [11] Emerging from Keynesian economics (advocacy for state intervention) and neoclassical economics (emphasis on reduced intervention), with the rise of high-growth countries (Singapore, South Korea, Hong Kong) and planned governments (Argentina, Chile, Sudan, Uganda), economic development and, more generally, development economics emerged amid these theoretical interpretations of the prosperity of economies in the middle. of the 20th century. Century. [12] Economist Albert O. Hirschman, a major contributor to development economics, also argued that economic development was increasingly concentrated in poor regions of the world, particularly in Africa, Asia and Latin America, but on the outpouring of basic ideas and models. [13] A growing understanding of economic development is the promotion of regional clusters and a thriving metropolitan economy. In today`s global landscape, location is critical and becomes the key to competitive advantage.
[ref. needed] It has also been argued, particularly by Asian and European proponents of infrastructure-based development, that systematic and long-term public investment in transport, housing, education and health is needed to ensure sustainable economic growth in emerging economies. We now know that the goal of economic development is to improve the well-being of all, regardless of race, origin or class, but how does that actually work? Strong partnerships are essential to the success of your economic development activities. Partnerships will help mobilize resources, build capacity and foster cooperation. Mansell and Wehn also note that economic development since World War II has been understood by non-practitioners as economic growth, namely the increase in per capita income and (if it is not currently present) the attainment of a standard of living equivalent to that of developed countries. [7] [8] Economic development can also be thought of as a static theory documenting the state of an economy at a given point in time. According to Schumpeter and Backhaus (2003), changes in this equilibrium state, which must be documented in economic theory, can only be caused by external factors. [9] Economic development began in the post-war reconstruction period initiated by the United States. In his inaugural address in 1949, President Harry Truman identified the development of undeveloped areas as a priority for the West: starting with an economic development plan and gaining input and approval. Once community support and partnerships are in place, you`re good to go. The exact definition of economic development is controversial: while 20th century economists viewed development primarily as economic growth, sociologists instead focused on broader processes of change and modernization. [2] Karl Seidman, a researcher in development and urban planning, summarizes economic development as “the process of creating and using physical, human, financial and social assets to generate improved and widely shared economic well-being and quality of life for a community or region.” [3] Daphne Greenwood and Richard Holt distinguish economic development from economic growth based on the fact that economic development is a “broad-based and sustained increase in the overall standard of living of individuals within a community” and that measures of growth such as per capita income are not necessarily correlated with improved quality of life.
[4] Economic development is a broader concept with qualitative dimensions. Economic development involves economic growth as well as gradual changes in some important variables that determine people`s well-being, such as health, education. The Center for International Finance and Development at the University of Iowa says economic growth is essential to development.