economic development

We explain what economic development is, its characteristics and the factors that define it. Also, liberalism and protectionism.

Economic development includes economic growth but also social welfare.

What is economic development?

The developing Economic can be defined as the capacity that countries or countries have regions to produce and obtain wealth. Development is linked to livelihoods and economic expansion in a way that ensures well-being, maintains prosperity, and meets the personal or social needs of people. persons.

Economic development arises with the advent of capitalist mode of production, which implies an increase in the rates ofgain that allow the accumulation of capital. These leaps in quantitative accumulation are caused by several factors that can be combined: the reduction of costs, incorporation of techniques or more productive machines, over exploitation of work forces, among others.

Characteristics of economic development

Economic development is achieved from a series of economic, social and political scenarios:

  • Increase in GDP per capita. Developed countries have a high gross domestic product due to the production and marketing of goods and services. The GDP per capita is one of the indices that is taken into account for the analysis of the development of a country. This index measures the total income of a country in relation to the number of inhabitants.
  • Basic needs covers. Developed countries distribute income so that all inhabitants have the basic needs covered. In these countries, unemployment rates are generally low. There is access to services such as Water, light Y gas almost total.
  • Development of productive capacity. Developed countries use resources and take advantage of them. Many of these countries focus on industrialization and in the service sector.
  • Respect for human rights and the social order. The societies that make up developed countries are usually made up of individuals satisfied with their quality of life. There is respect for democracy and the institutions.
  • Use of new technologies. The more economically developed countries introduce new technologies to promote rapid and efficient production.
  • Access to the Health Yet the education. Economic development makes it possible to strengthen and guarantee access to all population health and education.
  • Development of investment. Economic development generates a favorable climate for taking credits and investments.
  • Sustained growth. Economic development is achieved with economic growth and human development And social. They are usually long processes that once achieved can be extended in the weather.
  • Economic and social changes. Economic development brings with it a equal opportunities to the entire population and this generates Social Mobility.
  • Development of strong institutions. The sustained development of a nation it generates respect for democracy and a low rate of corruption in the political and social spheres.

Economic development factors

Technological factors are key in the development of economies.

There are a number of factors that are taken into account when measuring the economic development of a particular country or region.

On the one hand, it is important to bear in mind that economic development does not only imply economic growth, but is based on indicators such as: life expectancy, access to education and factors that contribute to the human and social development of individuals. .

  • Production factors. They are those elements that make up the economic aspect. The land, thecapital, work and management business are some of the factors that are part of the production chains. Based on these factors, economic growth is measured.
  • Technological factors. They are those technologies and techniques that are key in the development of economies. In recent decades, technology has allowed the optimization and streamlining of processes.
  • Factors that contribute to human development. They are those elements that allow differentiating economic growth from development. The social and economic progress of a country depends, to a large extent, on the situation of its inhabitants. Economic growth does not guarantee a distribution equitable income. The employment rate, access to education and health, the minimum salaryare some of the factors that determine the development of a country.
  • Political and social factors. They are those political, social and religious institutions that play a key role in the political, social and economic life of a nation. The way they exercise can this type of institutions and their degree of transparency and social conscience they are key in the economic development of a country.

Economic growth and economic development

Economic growth is a necessary condition for a country or region to experience economic development, but it is not the only factor that must be taken into account.

Growth must be accompanied by improvements and advances in the style and quality of life of the inhabitants. There must be changes in social, political and economic matters so that this economic growth is translated into the economic development of the country.

Access to services, health and education, that is, the guarantee of the basic needs covered is key when it comes to understanding development. Economic development must seek sustained economic growth over time to improve the quality of life of the population.

The analysis of these factors in certain countries is carried out by the United Nations through the preparation of the Human Development Index. There, the gross domestic product per capita, life expectancy and the literacy rate, among other factors, are measured.

Examples of economic development

Norway is considered the most developed country in the world.
  • Norway. It is considered the most developed country in the world. It has one of the highest GDP per capita. It is one of the largest producers of Petroleum. Access to health and education is public. It has a stable political system, low levels of corruption.
  • New Zealand. It is one of the most economically developed countries, with a high per capita GDP and equitable access to health and public education.
  • Swiss. It is one of the most developed economies in the world. It has a high GDP per capita, a low unemployment and inflation rate and a great development of the third sector of the economy.

Economic development in Mexico

Mexico is ranked 76 in the United Nations Human Development Index ranking. This index takes into account the Mexican GDP per capita, but also other data such as life expectancy, average access to education, employment conditions. These economic and social factors are the indicators of economic development.

Mexico has one of the largest economies in the world, with sustained economic growth in recent years, although there is still a struggle to reduce the inequalities economic and social.

As in many countries in the world, Mexico advocates a more balanced distribution of income that covers the basic needs of all inhabitants, to reduce the gap in the distribution of wealth and regional disparity.

Liberalism and protectionism

There are two main ways to understand the history of economic development:

Liberalism (Free market)

Liberalism is a current of thought that defends the freedoms individuals and gives a passive role to Condition.

It seeks individual free action so that business production is established in a commercial and competitive way. He also defends free commercialization,private property, the development of International Trade and the free business.

We can understand theFrench Revolution as the point at which individual freedom was established that allowed free action to produce and private property.

Protectionism

Protectionism is an economic doctrine that has a different conception of the role of the State compared to liberal ideology. It is based on protectionism and economic intervention by the State through public policies that act with the objective of avoiding the concentration of wealth and aims at equitable distribution.

Protectionism seeks to favor national production over the importation of foreign goods and services.

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