Economic Development Assignment: Concepts and Models Analysis

This assignment explores core concepts in economic development. It begins by defining development and contrasting Amartya Sen's human-centric view with traditional economic definitions. The document then examines the role of colonialism in the rise of industrial capitalism in Europe, detailing its economic and social impacts. Finally, it delves into the Solow model, discussing its roots, implications, and its prediction of convergence, including evidence supporting and challenging this prediction. The assignment draws on key academic sources to provide a comprehensive overview of these crucial topics in economics.

Running head: ECONOMIC DEVELOPMENT
ECONOMIC DEVELOPMENT
Name of the Student:
Name of the University:
Author’s Note:

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ECONOMIC DEVELOPMENT
Question 1:-
What is development? How does A. Sen's definition of development differ from the traditional
definitions in the textbook?
Answer:-
Development is a procedure that makes growth, improvement, favorable modification, or
the addition of physical, financial, ecological, public, and demographic components (Cypher,
James and James 107). The determination of expansion is a rise in the level and life quality of
the population, and the formation or increase of local, provincial revenue and employment
prospects, without injuring the incomes of the background. It is observable and beneficial, not
necessarily immediately, and contains a feature of quality modification and the creation of
circumstances for an extension of that change.
Dr. Amartya Sen puts importance on the particular worth of (Human) man. Liberty
depends on social and financial preparation with an expansion of Political and civil rights with
the right to contribute, innovation, and technological development support to have better
independence. Development as an improvement of liberty will be an end. Progress should
eliminate lots of non-freedom from gentleman's life (Jacobson 799). Non-self-determination is
the obstruction of human ability and interruption into development. According to the Dr. Sen, the
Human development, as a method, is concerned with what the people take to be the elementary
evolution idea: namely, progressing the fertility of social life, rather than the wealth of the
budget in which human beings aware, which is only a portion of it (Jacobson 803). He was
disagreeing that people must be capable of creating human life much better-off by going openly
at the influential factors that inspire the excellence of human beings.

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This textbook describes the traditional aspects of development. This storybook only
believes that the event is occurring only for economic improvement. But this concept is incorrect
because the proper construction is coming for human progression. Development must
consequently be considered as a multidimensional procedure connecting significant deviations in
social arrangements. Evolution in its spirit must signify the whole range of modification by
which an entire social structure (Cypher, James and James 120). Which turned to the varied basic
requirements and needs of entities and community groups within that coordination moves away
from a circumstance of life extensively observed as unacceptable towards a position or situation
of being regarded as substantially and mentally better.
Question 2:-
What is the role of colonialism in the emergence and development of industrial capitalism in
Europe?
Answer:-
A basic description would say that it is a financial structure where those things that create
factories, money, communications, and transport systems, are possessed by secretive businesses
and companies which trade in a 'free market' of rivalry. It is described as the strategy of a nation
when it is looking to retain or extend its legitimate authority over personalities or territories,
keeping in attention the objective of financial supremacy. However, it's related to social,
political, economic as well as cultural superiority of a country and its people by an overseas
power.
The two answerable factors behind the rise of manufacturing capitalism in Europe are the
expansion of industry and mechanization. The report writer can also contain here the importance

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of colonialism and the required flow of persons and sources from an African country to Europe
that occasioned in reaching great prosperity. The summative level of incomes increased after
making the slave profession and from the mistreatment of Africa led to the progress of the
western region and European development.
Capitalism is an unusual procedure in class society. Like earlier class cultures, it contains
a marginal section of society, grabbing the excess formed by the toil of the break of community.
But there are significant variances. Previous governing classes only detained the left-over, while
financiers get it by purchasing people's capability to work (Cypher, James and James 115). The
massive economic variation detects by people. In today's world, it is the path-dependent result of
a multitude of historical procedures, one of the most significant of which has been European
colonization.
The circumstance that colonialism had proper significance on progress in some
backgrounds does not mean that it did not have distressing adverse effects on original populaces
and civilization. It did. It is the modern period that had a different impact. It is made reasonable
by many other pieces of confirmation. Colonial governments capitalized on structure and
employment and dispersed medical and technical information. In some circumstances, they
encouraged literateness, the acceptance of Western human rights morals, and propagated the
sources for autonomous institutes and systems of higher management.
Question 3:-
Discuss the roots and implications of the Solow model. How does the Solow model predict
convergence? What is the evidence of this prediction?
Answer:-

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The Solow model creates the expectation of whether markets converge trust why they
contrasted in the leading place. On the one point, if two markets with a similar steady-state had
started with altered stocks of wealth, then people would guess them to converge. Economists feel
painful with some allegations of the Solow model. First, there is a query of the heterogeneity of
technical development. It extends labor efficiency but is exogenous to the budget (Cypher, James
and James 130). A budget can do nothing to hurry its long-run rate of financial growth. This
model trusts that an increase in money accretion and a reduction in the labor power will raise the
economic growth rate. This rise in growth rates is only short-term since the prototype is only for
the small run.
There is no development in the long term. If nations have the same growth rate, savings
rate, and wealth devaluation rate, then they have a similar steady-state, so they will converge.
The Solow Growth Model forecasts restrictive convergence. Alongside this convergence track, a
more impoverished country produces faster. Nations with more than a few saving charges have
different steady states, and they will not converge. The Solow Growth Model does not forecast
complete convergence. When saving rates are not the same, progress is not always advanced in a
nation with lesser initial money stock (Cypher, James and James 112). This model predicts some
convergence of existing standards. Still, the amount of catch up in current standards is
interrogated – not least the presence of the middle-income trick when rising economies discover
it durable to withstand growth and growing per capita profits outside a specific level.

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References:-
Cypher, James M., and James L. Dietz. The process of economic development. Routledge, 2008.
Jacobson, Thomas L. "Amartya sen's capabilities approach and communication for development
and social change." Journal of Communication 66.5 (2016): 789-810.