3:13 pm - Monday December 15, 4566

Growth And Development

GROWTH AND DEVELOPMENT

This whole article is also related to  growth and development of economy . Step by step rise in growth and development of economy  is given below.

Growth and development of economy

Growth and development of economy

MERCANTILISM :-

Economic Growth and Development

Growth and development of economy

It was the economic system used during during 16 , 17 , 18 centuries. During this period main aim was to increase nations wealth  through trade or any other mean which will bring more gold. They believed that One should have more old than other which was economy during that period.  More gold More strength.This let to many intra-European wars during that period.

THEN CAME ZERO-SUM GAME CONCEPT:-

This means that overall  change in total wealth among participants is zero, moreover  the wealth is just shifted. International trade was like it. In this concept it was believed that if one gains other looses.

Then WORLD WAR ONE  happened , then came gold standard. One cannot believed on other currencies so they started trading via gold. So during this period emphasis was on production.

Growth and development of economy

ZERO-SUM GAME CONCEPT

This led to great depression  during 1929’s &30’s. Factories closed , Loss in Stock market, Unemployment .

For example:-Black Friday (america 1929)

Growth and development of economy

ZERO-SUM GAME CONCEPT

THEN KEYNES SUGGESTED STIMULUS PACKAGE:-

He said government should spend on building , roads , infrastructure, factories , railway , etc. So that circle of flow of money will start and with the help of this package country started growing.

In between WORLD WAR TWO  happened , there was huge production during that time. america exported jeeps, trucks, tanks,etc. Ww2(World war two) resulted in huge destruction.

THEN CAME IBRD (International banks for reconstruction and development):- 

This is now known as world bank. Gave loans to nations for reconstruction.

Growth and development of economy

IBRD (International banks for reconstruction and development)

THEN  CAME IMF (International Monetary Fund):-

To manage international currency and finance

Growth and development of economy

IMF (International Monetary Fund)

THEN GATT (General agreement trade and tariffs):-

Till 1970 growth was synonymous with development.During that time we believed that if you have more income the you are developed or you stay in developed state.

Growth and development of economy

GATT (General agreement trade and tariffs)

TRICKLE DOWN APPROACH:-

If a nation has money regardless of distribution it will have higher standard if living.

In 1972 New International Economic (NIEO) Survey was done. If was found that actually poverty , inequality , hunger increased instead of decreasing ,regardless of  different department to monitor everything were made and there was increase in employment too during that time. After studying, it was found that it was due to massive increase in population.

Growth and development of economy

TRICKLE DOWN APPROACH

THEN “AMARTYA SEN” concept came :-

He said that availability of food doesn’t ensure consumption of food  or affordability of food. There are some basic needs of every person if it is their than their participation in Trickle Down Approach will increase. Basis needs are health, nutrition , education,etc.

For example :- In INDIA started PDS (public distribution system), family planning programs, etc.

Growth and development of economy

AMARTYA SEN

 

Growth and development of economy

AMARTYA SEN

 

 

 

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