Jhingar 2

CONTENTS
PART ONE – BASIC PROBLEMS

Chapter-1 Economics of Development : Concepts and Approaches
Introduction
Economic Development and Economic Growth
Measurement of Economic Development
Basic Needs vs Economic Growth
Conclusion
Human Development Indices
Physical Quality of Life Index (PQLI)
Construction of PQLI
Human Development Index (HDI)
Constructing the Human Development Index (HDI)
Development Economics in Retrospect
Chapter-2 Economic Growth and Income Distribution : The Kuznets

Hypothesis
The Kuznets Hypothesis
Causes of Increase in Inequality with Development
Causes of Reduction in Inequality with Development
Its Critical Appraisal
Chapter-3 Sustainable Development

Meaning
Objectives of Sustainable Development
Environmental Problems
Causes of Environmental Degradation
Policies for Sustainable Development
Measuring Sustainable Development
Chapter-4 Characteristics of An Underdeveloped Country

Meaning of the Term ‘Underdeveloped’
Different Criteria of Underdevelopment
Characteristics of an Underdeveloped Country
General Poverty
Agriculture, the Main Occupation
A Dualistic Economy
Underdeveloped Natural Resources
Demographic Features
Unemployment and Disguised Unemployment
Economic Backwardness
Lack of Enterprise and Initiative
Insufficient Capital Equipment
Technological Backwardness
Foreign Trade Orientation
Chapter-5 Obstacles to Economic Development

Vicious Circles of Poverty
Low Rate of Capital Formation
Socio-cultural Constraints
Agricultural Constraint
Human Resources Constraint

Foreign Exchange Constraint
Chapter-6 Factors of Economic Growth: Economic and Non-Economic

Economic Factors
Non-Economic Factors
Social Factors
Human Factor
Political and Administrative Factors
Chapter-7 Chenery’s Patterns of Structural Change

Introduction
Development Processes
Accumulation Processes
Resource Allocation Processes
Demographic and Distributional Processes
Conclusion
Chapter-8 Meaning and Characteristics of Modern Economic Growth

Meaning
Characteristics of Modern Economic Growth
High Rates of Growth of Per Capita Product and Population
The Rise in Productivity
High Rate of Structural Transformation
Urbanisation
The Outward Expansion of Developed Countries
International Flow of Men, Goods and Capital
Conclusion
PART TWO – SOME THEORIES OF ECONOMIC

DEVELOPMENT
Chapter-9 Adam Smith’s Theory
The Theory
A Critical Appraisal
Its Applicability to Underdeveloped Countries
Chapter-10 The Ricardian Theory

Ricardo’s Theory
Underdeveloped Countries and Ricardo’s Theory
Chapter-11 The Malthusian Theory

The Theory
Measures to Promote Economic Development
Chapter-12 Mill’s Theory

Introduction
The Theory
Applicability of Mill’s Theory on Underdeveloped Countries
Chapter-13 The Classical Theory

The Theory
Its Criticisms
Chapter-14 The Marxian Theory

Introduction
The Marxian Theory
The Marxian Process of Economic Development
Downfall of Capitalism
The Marxian Theory and Underdeveloped Countries
Chapter-15 The Schumpeterian Theory

The Theory
Criticisms of the Theory
Schumpeter’s Analysis and Underdeveloped Countries
Chapter-16 The Keynesian Theory

Summary of Keynes Theory
Applicability of Keynes’ Theory to Underdeveloped Countries
Keynesian Assumptions and Underdeveloped Countries
Tools of Keynesian Economics and Underdeveloped Countries
Chapter-17 Marx’ Stages of Growth

The Primitive Communal Stage
The Slave Stage
The Feudal Stage
The Capitalist Stage
The Socialist or Communist Stage
Marx vs. Rostow
Chapter-18 Rostow’s Stages of Economic Growth

The Traditional Society
The Pre-conditions for Take-off
The Take-off
The Drive to Maturity
The Age of High Mass-Consumption
Criticism of the Stages of Economic Growth
Importance and Limitations of Take-off for Underdeveloped Countries
The Take-Off and India
Chapter-19 Gerchenkron’s Great Spurt Theory

Gerschenkron’s Great Spurt Theory
Six Generalisations
Common Characteristics of Nations
How to Bring About the Great Spurt?
Critical Appraisal
Gerschenkron vs. Rostow
Chapter-20 Nurkse’s Theory of Disguised Unemployment as a Saving

Potential
Meaning of Disguised Unemployment
Nurkse’s Theory
Limitations of the Concept
A Realistic View
Chapter-21 Lewis Theory of Unlimited Supplies of labour

The Lewis Theory
Chapter-22 Fei-Ranis Theory

The Theory
Assumptions
Chapter-23 Jorgenson’s Neo-Classical Model of a Dual Economy
The Jorgenson Model
Assumptions of the Model
Conclusion
Jorgenson Vs. Fei-Ranis
Chapter-24 Harris-Todaro Model of Migration and Unemployment

Assumptions of the Model
The Model
Policy Implications of the H-T Model
Its Critical Appraisal
Chapter-25 Leibenstein’s Critical Minimum Effort Thesis

Leibenstein’s Theory
Chapter-26 Nelson’s Low-Level Equilibrium Trap

Nelson’s Theory
Sets of relations
Factors that Avoid Trap
Chapter-27 The “Big Push” Theory

Rosenstein-Rodan’s Thesis
Indivisibilities in the Production Function
Indivisibility of Demand
Indivisibility in the Supply of Savings
Chapter-28 The Doctrine of Balanced Growth

Meaning of Balanced Growth
Explanation of the Theory
Criticisms of the Doctrine of Balanced Growth
Chapter-29 The Concept of Unbalanced Growth

Introduction
Hirschman’s Strategy
Its Limitations
Balanced Vs. Unbalanced Growth
Conclusion
Chapter-30 Dualistic Theories

Social Dualism
Technological Dualism
Financial Dualism
Chapter-31 The Dependency Theory of Underdevelopment

Introduction
Meaning of Dependency
The Dependency Theory
Dependency : A Historical International Process
Foreign Capital
Technological Dependence
Trade and Unequal Exchange
Dualism
Policy Implications of Dependency Theory
Critical Appraisal
Emmanuel’s Theory of Unequal Exchange
Chapter-32 The Limits to Growth Model

Introduction
The Model
Predictions of the Model
Its Graphic Explanation
Its Criticisms
Its Implications
Conclusion
Chapter-33 Myrdal’s Theory of Circular Causation

Introduction
The Myrdal Thesis
Regional Inequalities
International Inequalities
PART THREE – SOME GROWTH MODELS

Chapter-34 The Harrod-Domar Models
Introduction
Requirements of Steady Growth
Assumptions
The Domar Model
The Harrod Model
A Comparative Study of the Two Models
Limitations of these Models
Application of Harrod-Domar Models to Underdeveloped Countries

Limitations of these Models from the Standpoint of Underdeveloped Countries
Chapter-35 The Kaldor Model of Distribution

The Kaldor Model
Its Criticisms
Chapter-36 The Pasinetti Model of Profit and Growth

The Model
Comparison with the Kaldor Model
Chapter-37 Joan Robinson’s Model of Capital Accumulation

The Robinson Model
Its Weaknesses
Chapter-38 Meade’s Neo-Classical Model of Economic Growth

The Meade Model
Chapter-39 The Solow Model of Long-Run Growth

Introduction
Assumptions
The Model
Weaknesses
Applicability of Solow Model to Underdeveloped Countries
Chapter-40 Kaldor’s Model of Growth

Introduction
Assumptions
The Model
Chapter-41 The Models of Technical Change

Introduction
Neutral and Non-Neutral Technical Change
Hicks Neutrality
Its Criticisms
Hicks Non-Neutral Technical Change
Disembodied and Embodied Technical Change
Embodied Technical Change Model-Vintage Approach
Chapter-42 The Uzawa Two-Sector Growth Model

The Uzawa Model
Equations of The Model3
Working of the Model
Chapter-43 The von Neumann Growth Model

The Neumann Growth Model
Chapter-44 Steady State Growth

Meaning
Properties of Steady State Growth
Flexibility of n
Flexible Capital-Output Raio (v)
Flexibility of Saving Ratio (s)

Flexible Saving Ratio (s) and Flexible Capital-Output Ratio (v)
Technical Progress
Chapter-45 The Golden Rule of Accumulation

Introduction
The Golden Rule Path
Representation of the Golden Rule
The Neoclassical Case
Chapter-46 Growth Accounting

Introduction
Solow’s Sources of Growth
Its Criticisms
Denison’s Sources of Growth
Its Criticisms
Jorgenson-Griliches’ Sources of Growth
Measurement of Sources of Growth
Its Criticisms
Chapter-47 The New Endogenous Growth Theory

Introduction
The Solow-Swan Model
Implications of the Model
The Convergence-Divergence Controversy
Absolute or Unconditional Convergence
Empirical Evidence
Conditional Convergence
Empirical Evidence
Conclusion
Arrow’s Learning by Doing and Other Models
The Lucas Model
Romer’s Model of Technological Change
Criticisms of New Growth Theory
Policy Implications of New Growth Theory
Implications for Developing Countries
Chapter-48 The Cambridge Capital Controversy in The Neo-classical

Analysis of Growth
Introduction
The Capital Controversy
The Neo-Classical Capital Theory
Assumptions
The Cambridge Criticisms
Joan Robinson’s Critique
Samuelson’s Critique and the Surrogate Production Function
Assumptions
Surrogate Production Function
Its Criticisms
More about the Cambridge Critique
Conclusion
Chapter-49 The Fel’dman Model

The Model
Comparison with the Domar Model
Implications for Economic Development
Chapter-50 The Mahalanobis Model

Introduction
Two-Sector Model
Relation of the Mahalanobis Two-Sector Model with the Domar Model
Four-Sector Model
PART FOUR – DOMESTIC MEASURES FOR

ECONOMIC DEVELOPMENT
Chapter-51 Capital Formation and Economic Development
Meaning of Capital Formation
Importance of Capital Formation
Reasons for Low Rate of Capital Formation
Sources of Savings
Sources of Capital Formation
Chapter-52 Role of Agriculture and Industry in Economic Development

Agriculture and Economic Development
Role of Industrialisation
Interrelationship between Agricultural and Industrial Development
Chapter-53 Monetary Policy in Economic Development

Meaning and Importance
Main Features of Monetary Policy
Chapter-54 Fiscal Policy in Economic Development

Meaning and Importance
Taxation as the Most Effective Instrument of Fiscal Policy
Role of Public Borrowing in Economic Development

Role of Public Expenditure in Economic Development
Chapter-55 Deicit Financing as an Instrument of Economic Development

Meaning
Role of Deficit Financing
Its Adverse Effects
Safe Limits of Deficit Financing
Chapter-56 Price Policy in Economic Development

The Nature of Price Policy
Objectives of Price Policy
Chapter-57 Population Growth and Economic Development

Introduction
Effects of Population Growth on Economic Development
Factors Promoting Economic Development
Factors Retarding Economic Development
The Theory of Demographic Transition
Its Criticisms
Chapter-58 Human Capital Formation and Manpower

Meaning and Importance of Human Capital Formation
Problems of Human Capital Formation
Criteria for Investment in Human Capital
Manpower Planning in LDCs
Manpower Shortage
Manpower Surplus
Strategy for Manpower Planning
Estimating Future Manpower Requirements

Chapter-59 Entrepreneurship in Economic Development
Role of the Entrepreneur
Factors Impeding the Growth of Entrepreneuship
How to Encourage Entrepreneurship
Chapter-60 Role of the State in Economic Development

Introduction
Changes in Institutional Framework
Organisational Changes
Social and Economic Overheads
Agricultural Development
Industrial Development
Monetary and Fiscal Policies
Increase in Foreign Trade
PART FIVE – INTERNATIONAL MEASURES

FOR ECONOMIC DEVELOPMENT
Chapter-61 Foreign Trade and Economic Development
Introduction
Importance of Foreign Trade
Direct Benefits
Indirect Benefits
Its Criticisms
Overview
Conclusion
Chapter-62 The Debt Problem of LDCs

Introduction
The Debt Crisis
Causes of the Debt Crisis
Measure to Solve the Debt Crisis
Long-Term Suggestions
Chapter-63 New International Economic order (NIEO)

Origin
Objectives (or Features) of NIEO
Implementation of NIEO Programme
Conclusion
Chapter-64 Commercial Policy and Economic Development

Meaning
Arguments For and Against
Export Promotion Vs. Import Substitution
Conclusion
Chapter-65 WTO and Developing Countries

Introduction
The WTO
Its Objectives
Its Functions
WTO Agreement
WTO and Developing Countries
The Doha Round
Chapter-66 Foreign Capital and Aid in Economic Development

Types of Foreign Aid
Role of Foreign Aid In Economic Development
Case For Foreign Aid
Case Against Foreign Aid
Tied Vs. Untied Aid
Factors Determining the Amount of Foreign Aid for Economic Development
Aid or Trade
Chapter-67 Two-Gap Model and Costs-Benefits of Foreign Aid

Two-Gap Model
Its Limitations
Importance of Two-Gap Analysis
Costs and Benefits of Aid
Its Implications
Chapter-68 Private Foreign Investment and Multinationals

Nature
Merits of Private Foreign Investment
Demerits of Private Foreign Investment
Multinational Corporations and LDCs
Meaning
Spread of MNCs
Merits of MNCs
Demerits of MNCs
An Overview
Chapter-69 Economic Integration Among Development Countries

Need for Economic Integration
Benefits from Economic Integration
Problems of Economic Integration

Measures to Encourage Economic Integration among Developing Countries
Conclusion
Chapter-70 Millennium Development Goals (MDGs)

Introduction
Goals and Targets
Strategies
How to Achieve the Goals
Implementation of Millennium Development Goals (MDGs) in India
Progress of Millennium Development Goals
PART SIX – SOME PROBLEMS OF

DEVELOPMENT PLANNING
Chapter-71 Economic Planning
Meaning of Economic Planning
Need for Planning in Underdeveloped Countries
Plan Formulation and Requisites for Successful Planning
Problems of Development Planning
Planning by Direction and Planning by Inducement
Financial and Physical Planning
Perspective Planning and Annual Planning
Indicative Planning and Imperative Planning
Democratic Planning and Totalitarian Planning
Rolling and Fixed Plans
Planning under Capitalism and Socialism
Centralised and Decentralised Planning
Corrective Planning and Development Planning

Planning in a Mixed Economy
Planning Models
Chapter-72 Shadow Prices

Introduction
Need For the Use of Shadow Prices
Meaning of Shadow Prices
Determination of Shadow Prices
Difficulties of Shadow Price
Uses of Shadow Prices
Chapter-73 Project Evaluation and Cost-Benefit Analysis

Meaning
Its Stages
Methods of Evaluation
Cost-benefit Analysis
Evaluation on the basis of Cost-Benefit Criteria
Evaluation on the Basis of Benefits
Evaluation on the Basis of Costs
Importance of Data for Evaluation
Limitations of Cost-Benefit Analysis
Use of Cost-Benefit Analysis in Developing Countries
Its Difficulties
Use of Cost-Benefit Analysis in India
Some Suggestions
Chapter-74 Controls under Planning

Need for Controls
Types of Controls
Aims of Physical Controls
Limitations of Physical Controls
Chapter-75 Input-Output Analysis

Meaning
Use of Input-Output Model in Planning
Feasibility and Consistency of the Plan
The Leontief Solution
The Dynamic Input-Output Model
Limitations of Input-Output Analysis
Use of Input-Output Technique in Planning
Chapter-76 Linear Programming

Meaning
Conditions and Generalisations
Assumptions
Programming Technique—Its Application in Planning
Limitations of Linear Programming
Uses of Linear Programming in Planning
Chapter-77 The Concept of Capital-Output Ratio

Meaning
Capital-Output Ratio in Underdeveloped Economies
Factors Determining Capital-Output Ratio
Nature of Capital-Output Ratio
Case for Low or High Capital-Output Ratio
Limitations
Importance in Planning
Chapter-78 The Choice of Techniques
Meaning
Process of Technological Development
Labour-intensive Techniques
Capital-intensive. Modern Techniques
Use of Abandoned Techniques of Advanced Countries
Intermediate Technology
Appropriate Technology
Labour-intensive vs Capital-intensive Techniques
Conclusion
Chapter-79 Transfer of Technology

Introduction
Need for Transfer of Technology
Channels of Technology Transfer
Problems in Technology Transfer
Appropriate Package of Technology Transfer
Chapter-80 Investment Criteria in Economic Development

Introduction
The Capital-Turnover Criterion
The Social Marginal Productivity Criterion
The Reinvestment Criterion
The Time Series Criterion
Conclusion
Chapter-81 Economic Planning and Price Mechanism

Introduction
Price Mechanism in a Planned Economy
Price Mechanism in an Underdeveloped Economy
Bibliography

Jhingar 2

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Jhingar 2

Uploaded by

Copyright:

Available Formats

CONTENTS

PART ONE – BASIC PROBLEMS

Economic Development and Economic Growth

Measurement of Economic Development

Basic Needs vs Economic Growth

Human Development Indices

Physical Quality of Life Index (PQLI)

Human Development Index (HDI)

Constructing the Human Development Index (HDI)

Development Economics in Retrospect

Chapter-2 Economic Growth and Income Distribution : The Kuznets

Causes of Increase in Inequality with Development

Causes of Reduction in Inequality with Development

Its Critical Appraisal

Chapter-3 Sustainable Development

Causes of Environmental Degradation

Policies for Sustainable Development

Measuring Sustainable Development

Chapter-4 Characteristics of An Underdeveloped Country

Different Criteria of Underdevelopment

Characteristics of an Underdeveloped Country

Agriculture, the Main Occupation

Underdeveloped Natural Resources

Unemployment and Disguised Unemployment

Lack of Enterprise and Initiative

Insufficient Capital Equipment

Foreign Trade Orientation

Chapter-5 Obstacles to Economic Development

Low Rate of Capital Formation

Human Resources Constraint

Chapter-6 Factors of Economic Growth: Economic and Non-Economic

Political and Administrative Factors

Chapter-7 Chenery’s Patterns of Structural Change

Resource Allocation Processes

Demographic and Distributional Processes

Chapter-8 Meaning and Characteristics of Modern Economic Growth

Characteristics of Modern Economic Growth

High Rates of Growth of Per Capita Product and Population

The Rise in Productivity

High Rate of Structural Transformation

The Outward Expansion of Developed Countries

International Flow of Men, Goods and Capital

PART TWO – SOME THEORIES OF ECONOMIC

Its Applicability to Underdeveloped Countries

Chapter-10 The Ricardian Theory

Underdeveloped Countries and Ricardo’s Theory

Chapter-11 The Malthusian Theory

Measures to Promote Economic Development

Its Applicability to Underdeveloped Countries

Chapter-12 Mill’s Theory

Applicability of Mill’s Theory on Underdeveloped Countries

Chapter-13 The Classical Theory

Chapter-14 The Marxian Theory

The Marxian Process of Economic Development

The Marxian Theory and Underdeveloped Countries

Chapter-15 The Schumpeterian Theory

Criticisms of the Theory

Schumpeter’s Analysis and Underdeveloped Countries

Chapter-16 The Keynesian Theory

Applicability of Keynes’ Theory to Underdeveloped Countries

Keynesian Assumptions and Underdeveloped Countries

Tools of Keynesian Economics and Underdeveloped Countries

Chapter-17 Marx’ Stages of Growth