Economic Development for Developing Countries
ECONOMIC DEVELOPMENT SUMMARY
CHAPTER 2: COMPARATIVE ECONOMIC DEVELOPMENT
(Page 65 – 73)
Created By:
PATRICIA M. A. ADAM
1006805694
International Undergraduate Program
Faculty of Economics University of Indonesia
Depok 2013
Larger Rural Populations but Rapid Rural-to-Urban Migration
One of the hallmarks of economic development is a shift from agriculture to manufacturing and services. Although modernizing in many regions, rural areas are poorer and tend to suffer from missing markets, limited information, and social stratification. However, a massive population shift is also under way as hundreds of millions of people are moving from rural to urban areas, fueling rapid urbanization, with its own attendant problems.
Lower Levels of Industrialization and Manufactured Exports
Industrialization is associated with High Productivity and Incomes. It is also a hallmark of modernization and national economic power. Moreover, it is a national priority for many developing countries, including Indonesia.
In developed countries, Agriculture only contributes small share to the overall employment and the same goes to Industry, which the share of employment is smaller than the developing countries, since they tend to expand their Service sector. An often suggested but controversial “Pattern of Development” is that the share of employment in industry is decreasing as the service increases as when developed-country status achieved)
Furthermore, developing nations have tended to have a higher dependence on primary exports even though the goods are typically less advanced in skill and technology content.
Adverse Geography
Geography plays a role in problems of agriculture, public health, and comparative underdevelopment. In tropical/sub-tropical countries for example, most of them are developing countries. They suffer from pests, diseases such as Malaria, and many others. Another case is in Africa, which most countries are landlocked countries. They tend to have
CHAPTER 2: COMPARATIVE ECONOMIC DEVELOPMENT
(Page 65 – 73)
Created By:
PATRICIA M. A. ADAM
1006805694
International Undergraduate Program
Faculty of Economics University of Indonesia
Depok 2013
Larger Rural Populations but Rapid Rural-to-Urban Migration
One of the hallmarks of economic development is a shift from agriculture to manufacturing and services. Although modernizing in many regions, rural areas are poorer and tend to suffer from missing markets, limited information, and social stratification. However, a massive population shift is also under way as hundreds of millions of people are moving from rural to urban areas, fueling rapid urbanization, with its own attendant problems.
Lower Levels of Industrialization and Manufactured Exports
Industrialization is associated with High Productivity and Incomes. It is also a hallmark of modernization and national economic power. Moreover, it is a national priority for many developing countries, including Indonesia.
In developed countries, Agriculture only contributes small share to the overall employment and the same goes to Industry, which the share of employment is smaller than the developing countries, since they tend to expand their Service sector. An often suggested but controversial “Pattern of Development” is that the share of employment in industry is decreasing as the service increases as when developed-country status achieved)
Furthermore, developing nations have tended to have a higher dependence on primary exports even though the goods are typically less advanced in skill and technology content.
Adverse Geography
Geography plays a role in problems of agriculture, public health, and comparative underdevelopment. In tropical/sub-tropical countries for example, most of them are developing countries. They suffer from pests, diseases such as Malaria, and many others. Another case is in Africa, which most countries are landlocked countries. They tend to have