Economics, Institutions, and Development: A Global Perspective Chapter 1 1

How the Other Three-Quarters Live A typical family in North America A typical family in rural Asia A typical family in urban South America

Economics and Development Studies The nature of development economics Development economics: some critical questions The role of values in development economics

Economies as Social Systems Economics is important Non-economic variables are also important Values, attitudes, and institutions must be understood

What Do We Mean By Development? Traditional economic measures The new economic view of development underdevelopment is more than just statistics development is a multidimensional process Three core values of development sustenance self-esteem freedom from servitude

What Do We Mean By Development? The three objectives of development increases in availability and improvements in the distribution of food, shelter, health, protection, etc. improvements in ‘levels of living,’ including higher incomes, more jobs, better education, etc. expansions in the range of economic and social choices available to individuals and nations

Concepts for Review Attitudes Development Development economics Freedom Globalization Gross National Product (GNP) Income per capita Per capita GNP Political economy Self-esteem Social indicators Social system Subsistence economy

Concepts for Review Sustenance Third World Traditional economics Value premises Values