Economic Growth and Development SS3 Economics Lesson Note

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

1. Define economic growth and development
2. Differentiate between economic growth and development
3. Discuss underdevelopment; its characteristics, problems and solutions
4. Highlight strategies for economic development

INSTRUCTIONAL TECHNIQUES: 

• Identification, 
• explanation, 
• questions and answers, 
• demonstration, 
• videos from source

INSTRUCTIONAL MATERIALS: 

• Videos, 
• loudspeaker, 
• textbook, 
• pictures

NOTE

ECONOMIC GROWTH AND DEVELOPMENT

Economic growth can be defined as an increase in the real per-capital income of an economy. By increase in the real per-capital income, we mean economic improvement in real terms per person in the economy.

Economic development on the other hand focuses on the improvement of the standard of living of the citizen and their quality of life.

Differences between Economic Growth and Development

Economic growth focuses on the quantitative improvement of the economy alone. In other words, it looks at the increase in per-capital income only.

On the other hand, economic development is concerned with both quantitative and qualitative improvements in the economy as you can see highlighted below-

(i) Increase in per capita output (qualitative)

(ii) High level of literacy (qualitative)

(iii) High life expectancy (qualitative)

(iv) High quality of health care (qualitative)

Under Development and Its Characteristics

Underdevelopment is defined as the underutilization of either the human capital or the natural resources of an economy. An underdeveloped economy is often characterized by the following-

(i) High rate of poverty

(ii) Low level of literacy

(iii) Low quality of healthcare

(iv) Low level of per-capital income

(v) Wide income of inequalities

(vi) Underutilized manpower and natural resources

(vii) High level of corruption

(viii) Dependence on primary goods

(ix) Use of outdated technology

Solutions to Underdevelopment

1. Encourage Investment: The government as a matter of utmost importance must encourage both local and foreign investors to invest in the economy.This will lead to job creation and reduce poverty in the country.
2. Provisions of infrastructure: infrastructure like good roads, and constant electricity must be provided to reduce the cost of doing business in the country
3. Provision of employment opportunity: The government absorbed some of the unemployment into civil service as civil servants.
4. Human capital development: The development of the labour force very key for a country to move from an underdeveloped economy to a developed one.The government must hence education and research.
5. Provision of business incentives: Business incentives like tax holidays and low interest rates on loans must be given to the infant industries (new industries) for them to be able to compete with the stabilized ones.

Strategies for Economic Development

1. Import Substitution:  This is when a country encourages the production of imported goods locally. By doing such, firms are springing up; supporting firms are also springing up, both employing labour and by extension reducing poverty. An example of this is the policy of encouraging local production of rice.
2. Export Promotion: this is a situation where the government reduces or eliminates barriers that could hinder the export of final goods.

EVALUATION

1. Define economic growth and development
2. Differentiate between economic growth and economic development
3. Explain underdevelopment
4. State four characteristics of underdevelopment
5. Give four solutions to underdevelopment
6. Outline strategies for economic development

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively