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.
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.
This led to great depression during 1929’s &30’s. Factories closed , Loss in Stock market, Unemployment .
For example:-Black Friday (america 1929)
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.
THEN CAME IMF (International Monetary Fund):-
To manage international currency and finance
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.
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.
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.
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