Day: January 16, 2022

In its broadest sense, industry is any work that is undertaken for economic gain and that promotes employment. The word may be applied to a wide range of activities, from farming to manufacturing to tourism. It encompasses production at any Read More …

Genuine Progress Indicator (GPI) GPI is a concept in welfare economics that has been suggested to replace gross domestic product (GDP) as a metric of economic growth. GPI is an attempt to measure whether a country’s growth, increased production of Read More …

Economic Growth Economic growth is an increase in activity in an economy. It refers only to the quantity of goods and services produced; it says nothing about the way in which they are produced. Economic development Economic development refers to Read More …

Different researches on the causes of African underdevelopment emphasize varieties of factors as the root causes of African underdevelopment. Among these the most important ones can be grouped into the following categories: hostile natural environment, archaic production technology, demographic factors, Read More …

All the theories discussed in this chapter are only partial theories. They explain certain aspects but do not fully explain the cause of underdevelopment. The explanation is more adequate for certain historical situations and specific conditions of production while they Read More …

According to dependency theories, the cause of underdevelopment is the dependence on industrialized countries while internal factors of developing countries are considered irrelevant or seen as symptoms and consequences of dependence. The development of industrialized countries and the underdevelopment of Read More …

In the dualism and (economic) strategy theories discussed so far, underdevelopment and development are explained by economic factors alone while individual or group values and motivations are neglected. The social-psychological theories consider these very factors as main determinants of underdevelopment Read More …

Underdevelopment from the viewpoint of these theories is the result of vicious circles of factors. One example is based on the fact of low real income in developing countries which is the result of low labour productivity. This low labour Read More …

Dualism theories assume a split of economic and social structures of different sectors so that they differ in organization, level of development, and goal structures. Usually, the concept of economic dualism differentiates between two sectors of economy: The traditional subsistence Read More …

According to modernization theories, internal factors in the countries, such as illiteracy, traditional agrarian structure, the traditional attitude of the population, the low division of labor, the lack of communication and infrastructure, etc., are responsible for underdevelopment. Differences in structure Read More …