alternative approaches to economic development. As with the Lewis model, the advent of fully conceptual design research paper commercialized agriculture and industry ends industrial growth (or what Fei-Ranis calls the take-off into self-sustained growth). This means that during a period of Inflation, the X of money you spend only allows you to purchase a smaller portion of what you used to be able to purchase (full portion) before inflation. Similarly, public investment in power and transport will increase productivity and thus encourage investment in various other industries. Popular Essays Become a StudyMode Member Sign Up - It's Free. This results from foreign capital removing a surplus from the dependent economy to the advanced country by structuring the underdeveloped economy in an external orientation that includes the export of primary products, the import of manufactures, and dependent industrialisation.
Development, index (HDI and can be supported by statistics from during this period, data dating from 1978 onwards relating to Chinas steady climb, as well as evidence from the Great Leap Forward. The earliest students of development economics were the mercantilists. It is how essay democracy india role model the economic growth is distributed amongst the population that determines the level of development. However, there are also drawbacks of the fast growing economy; they are a high risk of inflation and also harmful effects on the environment, among which are depletion of natural resources, destruction of rain forests and pollution, which can cause lasting consequences for succeeding generations. Whenever inflation strikes, the purchasing power of consumers declines and the ability to purchase goods drops.