Economic development is a socio-economic process based on an in-depth analysis of changes and changes that occur in the structure of the economy. From an economic point of view, over the years, this phenomenon has been understood as a continuous evolution of the quality of the capitalist system. It is desirable because of its close relationship with increasing the standard of living of the society. It also contributes to the development of civilization at large. The main determinants of the described process are four elements: natural and human resources, capital and technology.
Economic development is a long-term socio-economic process manifested by positive changes in the structure of the economy. It consists of improving management understood as the activity of distribution and redistribution, exchange and consumption of goods and services. It attaches great importance to the rational exploitation of the natural environment while maintaining its values while improving and modifying the productive capacity of the economy. He observes the changes that take place in the functioning mechanism, the form and the nature of the market. It sheds light on various types of competition, but also government regulatory actions in relation to visible changes.
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Economic development – what is it for?
With the scope of the subject economic development three concepts are linked, covering different areas of economics. Economic growth it refers to the quantitative expansion of basic economic quantities. It is mainly: consumption, income, production and accumulation that constitute the real value of gross domestic income per capita or globally. World GDP signifies the capacity of a society to produce. Value domestic income per capita defines the standard of living of a society. Four criteria are indicated that classify all the models developed to define economic growth, namely time, number of variables, principles of construction and theoretical basis.
Social development it is the set of necessary and irreversible changes taking place in society as a whole. They have a specific direction and increase the awareness and skills of the inhabitants of the described space. Socio-economic development this is the last aspect of economic development. It combines the processes of the development of society and the economy, indicating the reproduction of productive capacities in production and consumption, the natural environment, the functioning system and economic and social relations. It refers to quantitative and qualitative changes, which makes it possible to define all the activities of the economy, culture and society as well as political and systemic as well as socio-productive relations.
Economic development – the Malthusian model
Presence economic development it is natural in the modern world. For this reason, its elements must be improved by creating more and more precise and precise theories. Early attempts to formulate the right thesis either ended with the wrong conclusions or failed to consider all important factors. Obtaining inaccurate results made it possible to draw conclusions, which ultimately led to the systematization of problems of economic development. The basic patterns that have been formulated and analyzed over the centuries now form the basis for creating new ones.
It was one of the first theories of its kind the malthusian model. Its creator was Thomas Robert Malthus, who operated at the turn of the 19th and 20th centuries and assumed that the world’s population would increase exponentially, while the demand for food would increase adequately with advances in arithmetic. For the consequences of these changes, he predicted the appearance of a disproportion between natural increase and food production. To solve the problem that arose, he proposed to limit the birth rate by keeping wages low. Malthus’ model was ultimately proven wrong due to neglect of technological advances and increased production capacity. On the other hand, the population growth rate has been steadily decreasing without taking any action indicated by it. Despite the misinterpretation of the data, this theory has prompted the initiation of new research focused on the subject. economic development.
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Economic development – an eco-development model, i.e. Agenda 21
It is considered the most compatible with contemporary visions and systems of action eco-development model. This doctrine of political economy assumes that the level of quality of life of a society must correspond to the possibilities permitted by the current level of development of civilization. A sustainable mode of operation without diminishing the prospects of future generations to meet their needs is of particular importance here. This is influenced by three fundamental factors: society, the environment and economy. In order to regulate the impact of the above components, a document was adopted indicating the modalities of implementation of sustainable development in local life. Agenda 21 defines the main objective of the State, which is the protection of the environment.
Economic development it is fundamental to the proper functioning of society and the economy. By analyzing the processes that take place in the quantitative context, it makes it possible to define the type and the way of creating actions to be undertaken to achieve sustainable development. Such changes are necessary to increase production, the social standard of living and public safety, that is, to achieve the main objectives of the described process.