Phases of Economic

Development
What is Economic
Development?
What is Economic Development?
- Is the development of economic wealth of
countries, regions or communities for the well
being of their inhabitants.
- Is the progress in an economy or the
qualitative measure of this.

(Web Finance Inc., 2016)

Importance of Economic Development
- As business enthusiasts, it is important to
know the economic status of our country so
that we could further help it improve and
develop.
- The phases create a systematic illustration of
the stages in economic development that can
help relay the content efficiently and
effectively.
Importance of Economic Development
- Through giving examples that most of the
students can relate to.
 Phases
of
Economic
Development
 Phases of Economic
Development

Malthusian
1
Malthusian
- Proposed by Thomas Robert Malthus (1766-
1834)
- A theory about economic growth which
depends in the rate of the population of a
certain area.
- The economic growth is inversely proportional
to the population. The smaller the population,
the higher the economic growth and vice versa.
Thomas Robert Malthus
 Phases of Economic
Development

Government – LED
( Local Economic Development)

2
Government – LED
( Local Economic Development)
- An approach towards economic development
which allows and encourages local people to
work together to achieve sustainable economic
growth and development.
- Support the formation of partnership between
local and national institution towards strategic
implementations.
 Phases of Economic
Development

A la Kuznets
Government vs. Environment

3
 A la Kuznets
Government vs. Environment

- Proposed by Simon Kuznets

- The existence of a pattern of behavior,
between economic growth and
environmental degradation, consistent with
the environmental Kuznets curve (EKC)
hypothesis.
 A la Kuznets
Government vs. Environment

Curve
Simon Kuznets
 Phases of Economic
Development

Human Capital Based

4
Human Capital Based
- Is a measure of the economic value of an
employee’s skill set.
- Refers to the knowledge, skills sets and
motivation that people have, which provide
economic value.
- It could be invested in through education,
training and enhanced benefits that lead to an
improvement in the quality and level of
production.
 Phases of Economic
Development

Post Demographic
Transition
5
Post Demographic Transition
- Proposed in 1929 by Warren Thompson
- Is the transition from high birth and death
rate to lower birth and death rate as the
country develops from pre-industrial to and
industrialized economic system.
- Fertility rate decreases when child mortality
is low, and is weakly dependent in GDP.
Simon Kuznets