ECON 370 Lecture 1

Introductory Development as a process Historical, dynamic (fire, agriculture, indust’l rev’n ...) Poverty, health, freedom Growth – changes in values of economic parameters quantitative, extension of already established structure Development – growth accompanied or preseded by institutional change, qualitative, creation of new economic and non-economic structures "Productivity isn’t everything, but in the long run it is almost everything. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker.” (Paul Krugman)

Terminology and attitudes EARLIER: Developed/underdeveloped Advanced/backward First world/Third world Colonialism, imperialism, dependence STILL: North/South Rich/poor – High/middle/low income Traditional/modern NOW: Developed/developing Industrialized/Newly industrializing