(a) What is economic development?
(b) State three features of a developing country.
(c) Explain any four factors that can speed up the economic development of your country.
Explanation
(a) Economic development is the persistent growth in real per capital income coupled with structure changes in the economy which results in an improvement in the standard of living of the citizens.
(b)i. Low per capital income because of low levels of national output.
ii. Low life expectancy as a result of poor medical services and poor nutrition.
iii. Heavy dependence on agriculture and primary production because of low levels of technology industrialisation.
iv. High population growth rate due to high birth rate and reduced death rate.
v. Rapid rate of urbanisation due to rural-urban migration as a result of lack of social amenities in the rural areas.
vi. High rate of unemployment as a result of lack of industries and high population growth.
vii. High rate of illiteracy which leads to low levels of productivity.
viii. High dependency ratio leading to low rate of savings and investment.
ix. High indebtedness due to high interest rate payments on foreign loans which constitute a high fraction of the national budget.
x. Heavy dependence on foreign aids and grants
xi. Inadequate infrastructural facilities.
(c) i. Improving the savings ratio and hence capital formation
ii. Population control measures to check rapid population growth.
iii. Manpower training to enhance labour efficiency
iv. Improvement of technology
v. Improving the infrastructure of the economy
vi. Improving the health delivery system to enhance improved health of labour
vii. Exploitation of idle natural resources to add value
viii. Making available regular and cheap energy supply.
ix. Improving agriculture and expanding agro-processing
x. High level of political stability (peace and stability) to encourage investment and growth
xi. Provision of credit facilities for businesses to stimulate :onomic development