Examples of Economic Development
Economic Development Factors
Some things affect development and economic growth, but basically they can be grouped into two, such as economic and non-economic factors.
Things that can affect development and economic growth include HR, natural resources, and entrepreneurship and expertise.
Natural resources (HR), namely natural resources such as land, soil fertility, forest products, climate / weather conditions, sea products, and mining, are very influential in the growth of a country's industry, especially in terms of providing raw materials for production.
Entrepreneurship and expertise are needed as the processing of raw materials from nature into something that has high value (also known as the production process).
Human resources (SDA) also determine the success of national development through the number and quality of products. A very large population is a very potential market for marketing products, while the quality of the population determines how much productivity there is.
Non-economic factors include social conditions that exist in society, institutions, political situations, and systems that develop and apply in society.
Differences in Economic Growth and Economic Development
Economic growth
The process of rising per capita products in the long run.
Do not pay attention to income distribution.
Pay no attention to population growth
Not necessarily able to improve people's lives.
Economic growth is not necessarily accompanied by economic development
Each input can produce more output
Economic Development
A process of constant change towards improvement, including efforts to improve per capita products.
Paying attention to equitable distribution of income, including equitable development and its results.
Record population growth.
Improve the standard of living of the community.
Economic development is always accompanied by economic growth.
Every input besides producing more output has also occurred changes in institutional and technical knowledge.
Positive and Negative Impacts of Economic Development
Positive Impacts of Economic Development
Through economic development, the implementation of economic activities will run more smoothly and be able to accelerate the process of economic growth.
Their economic development is made possible by the creation of jobs needed by the community, thereby reducing unemployment.
Job creation due to their direct economic development can increase the level of national income.
The Negative Impacts of Economic Development
Their economic development is not well planned causing environmental damage.
Industrialization results in the reduction of agricultural land.