4.1 Economic Development

Economic Growth and Economic Development

Common Characteristics of Economically Less Developed Countries

Diversity Among Economically Less Developed Nations

International Development Goals

4.2 Measuring Development

Single Indicators

Composite Indicators

4.3 The Role of Domestic Factors

Domestic Factors

Positive externality of education:

  1. The benefit of education extend to society in the form of increased labour productivity and greater output
  2. Knowledge can be applied to research and development
  3. Results in lower unemployment
  4. Increased political stability
  5. Better social benefits such as: lower crime rates, better quality of life
  6. Education in women particularly promotes their increased participation in the labour force, lower birthrates, leading to lower population growth and reduce poverty

                Positive externality of health:

  1. Greater work productivity and therefore greater output and economic growth
  2. Lowering the risk to spread diseases
  3. Immunisation
  4. Healthy people provides more active and productive participation
  5. Which also links to education
  1. increase school attendance
  2. healthy students provide better efficiency
  3. longer lifespan, which means longer the time that education will benefit our society

The meaning of appropriate technology: To be effective, technologies must be well-suited to particular economic, geographical, ecological and climate conditions.

Developing countries

        Saving -> Credit/loans -> Investment -> Development



4.4 The Role of International Trade

Trade Problems facing many Economically Less Developed Countries

Trade Strategies for Economic Growth and Economic Development

4.5 The Role of Foreign Direct Investment

The Meaning of FDI and MNCs

Advantages and Disadvantages of FDI for Economically Less Developed Countries

4.6 The Role of Foreign Aid and Multilateral Development Assistance

Classification and Types of Aid

The Roles of International Monetary Fund (IMF) and the World Bank

4.7 The Role of International Debt

Foreign Debt and its Consequences

Why countries borrow from foreign sources        


Consequences of high levels of foreign debt

4.8 The Balance between Markets and Intervention

Strengths of Market-Oriented Policies

Weaknesses of Market-Oriented Policies

Strengths of Interventionist Policies

Weaknesses of Interventionist Policies