1. To know the meaning of development
2. To identify the different characteristics of developing countries-classification,
Diversity and common characteristics
3. To learn the various measurements of development
4. To determine the links between growth and human development
Traditional Neoclassical Economics is defined as a social science that deals with the
efficient allocation of scarce resources in order to satisfy the infinite needs and wants of men.
Through time, with the advent of technology, economics now explains Consumer Sovereignty,
Private Ownership of Properties, Utility Maximization and Individualistic Self-interested
Orientation toward economic decision making.
The study of economic development is one of the newest and challenging branches of
the broader disciplines of economics and political economy.
Adam Smith considered as the first development economist. His Wealth of Nations
(1776) was considered as the first treatise on economic development that discusses the
systematic study of the problems and processes of economic development in Africa, Asia and
Latin America which only emerged over the past almost half century.
In 1979, two eminen5-7t economists, W. Arthur Lewis of Princeton University and
Theodore Schultz of the University of Chicago were awarded Nobel Prize in economics for
pioneering studies of the development as a separate field within the economics discipline.
Development Economics which is another branch of economics deals with the
efficiency in the allocation of scarce (unproductive) resources and with their sustained growth
overtime. It also concerned with the economic, social, political, and institutional mechanisms,
both public and private, necessary to bring about fast and bigger-scale improvements in levels
of living for the peoples of Africa, Asia, Latin America, and the formerly socialist transition
economies. The ultimate purpose of development economics is to help us understand
developing economies, and help improve the standard of living of the majority of the global
Developmental Economics is the efficient allocation of existing scarce productive
resources with sustained economic growth overtime. It also deals with the economic, social,
political, and institutional mechanisms, both public and private, necessary to bring about rapid
and large-scale improvements in levels of living for the masses of poverty-stricken,
malnourished, and illiterate people of Africa, Asia and Latin America. Basically, the main