i) Economic Development: - The term ‘Economic Development’ refers to a sustainable increase in the standard of living of a nation’s population. It implies increased per capita income, better health and education as well as environmental protection. For example, during the period of 1993 the congress party sanctioned the North American Free Trade Agreement (NAFTA) between Canada and the United states which also included Mexico. This trade agreement removed the tariff other various trade barriers and created a free trade zone with a combined market size of $6.5 trillion including 370 million consumers. This had a great impact on the employment rate which grew from 150,000 jobs over the next ten years to 200,000 jobs. It was assumed, Labour intensive industries like textile industries would suffer while the capital goods industries would benefit. It was also assumed, the US automobile industry would incur profits by taking the advantage of low wage rate in Mexico and those US farmers, US banking, and telecommunication would incur enormous profit.
Economic development can be measured in various ways but first of all it is vital to mention that an economy can grow without developing. Development is a qualitative evaluation of a progress in the quality of life.
It can be measured by GDP and GNP per capita, birth rates, literacy rates, urbanization, life expectancy, electricity consumption, population growth and distribution of income.
ii) Structural Change: - Primary production is depended on the drawing out of raw materials through agriculture, mining, fishing, and forestry. Low-income countries mainly depend on primary production which is also called as agricultural sector. Secondary production is based on industrial production through manufacturing and construction. Middle income countries mainly depend on secondary (industrial) sector. Tertiary production is based on the provision of services such as education and tourism. In high-income countries... [continues]
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