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DHIL 11 40% 01:32 PREVIEW ENGLISH NTA-UGC NET Complete Course on Micro and Macro Economics for NTA NET Paper 2 Tanya Bhatia 3k followers STARTS Nov 27-Dec 17 D20 sessions, 4 quizzes O 9:30 PM - 11:00 PM NOV 27 In this course, Tanya Bhatia will cover entire syllabus of Micro and Macro Economics for Economics Paper 2 with expected and Previous yea... Read more LIMITED SEATS. Cost increases on 14th Nov. #4,800 Apply by Nov 27 Register now
GROWTH AND DEVELOPMENT By Tanya Bhatia
oGrowth - Increase in national Income oDevelopment- Growth + Equality
Growth and Development 1.Growth is just 'getting bigger', whereas development is improvement. 2. Growth can be explained as becoming bigger or larger or having more importance. 3. Growth is termed as a physical change, where as development is said to be physical as well as social or psychological change. 4. While growth is related to quantitative improvement, development is related to quantitative as well as qualitative improvement 5. When the term growth is related to living beings, it can mean the increase in weight, height and bone seize. On the other hand, development is the process of developing skills and capacities. It deals with the behavioral aspect of a living being
Vicious Circle of Poverty o Nurkse explains the idea in these words- It implies a circular constellation of forces tending to act and react upon one another in such a way as to keep a poor Country in a state of poverty. For example a poor man may not have enough to eat, being under fed, his health may be weak. being physically weak his working capacity is low which means that he is poor, which in turn means that he is poor which in turn means that he will not have enough to eat, and so on. A situation of this sort relating to a country as a whole can be summed up in one line A country is poor because it is poor'
UNDERDEVELOPMENT Capital deficiency Low productivity Low investment Low income Low savings Fig. 3.2 The Vicious Circle Supply Side
Marxian Theory of Economic Development In Marxian theory, production means the generation of value. Thus economic development is the process of more value generating, labour generates value. But high level of production is possible through more and more capital accumulation and technological improvement. o At the start, growth under capitalism, generation of value and accumulation of capital underwent at a high rate. After reaching its peak, there is a concentration of capital associated with falling rate of profit. In turn, it reduces the rate of investment and as such rate of economic growth. Unemployment increases. Class conflicts increase. Labour conflicts start and there is class revolts. Ultimately, there is a downfall of capitalism and rise of socialism
C+V Multiplying numerator & denominator by V we get SV SC SC V (V+C) V (V+ C) SC S S C Sv - rate of surplus value O -Organic composition of capital.