Economic Development and Growth

Economic Development

Economic development is defined as an increase in output per person, accompanied by a fundamental change in the structure of societyThese changes includeChanges in farming methodsMovement from rural to urban areasChange in the type of work from agriculture to manufacturing

Economic Growth

Economic growth is defined as an increase in output per person in a country

The 5 Stages of Economic Growth

1. The Traditional SocietyThe main occupation is subsistence farmingOutput is low, there's very little machinery usedThere's a small wealthy ruling eliteThere are few prospects in terms of educationThere are strong social customs and traditional values

2. The Preconditions for Take-OffAwareness grows of improvements in production techniquesNew methods of production are acceptedAgricultural output increasesManufacturing sector develops

3. The Take-OffObstacles to progress are removedThe population of urban areas increasesThe rate of investment in the country increases

4. The Drive to MaturityRange of goods/services provided widensOld industries decline and new, more dynamic industries emerge

5. The 

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5. The Age of Mass ConsumptionHigh income per head of capitaThere is an acquisition of consumer durable goods

Economic Development & Growth