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Adam Smith
An economic view on development.
Adam smith was a social philosopher and a pioneer of political economy.
Well know for his writing `The Wealth of Nations' in 1776 which existed to explain
why some nations are wealthy than other.
He argued that self-interested competition in the free market (prices of goods traded
between seller and buyer are set freely by the forces of supply and demand without
intervention from government policies) would tend to benefit society as a whole by
keeping prices low.
Smith supported the `division of labour' (which is where a person focus on a specific
part of a making/producing a product. For instance the production of a phone,
involves many parts and components that come together to make the whole phone,
so the production and labour is divided meaning some workers focus on
manufacturing the glass screen of the phone, while another group of people produce
the camera and so on.) This division of labour mean people can specialise in there
specific task therefore increase there knowledge of that task which can bring about
innovation. Division of labour increases labour and capital productivity, it also
extended markets.
Evaluation
Adam smith in his writing `Wealth of nations', he later counter argues his support for
division of labour saying that division of labour will destroy human begins and turn
people into creatures as stupid and ignorant as it is possible for human beings to be.…read more

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John Maynard Keynes
An economic view on development in the 1930
John Maynard Keynes was an British economist who advocated
for fiscal ( government actions/taxes) monetary ( banks/interest
rates) measures to mitigate the adverse affects of when the
economy is in a slump and in a recession.
John Maynard Keynes explains that the slump was a short-term
problem that is caused by a lack of demand. So if the private
sector is not prepared to spend money in boosting demand, then
the government should intervene, to be the one spending, in
order to manage the level of demand. Then when the economy is
at a good place, the private sector would start spending again, and
the government will slow down its spending and pay off the debts
they accumulated in the slump this should balance the budget in
the medium term.
economic growth (and employment) depends on 'aggregate
demand' (consumption, investment and net exports).
Evaluation
The government efforts doesn't necessary mean their efforts will…read more

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Modernisation Theory ( Rostow Model)
An economic view on development in the 1960.
Walt Rostow suggested that there are stages of economic
growth. Which include:
1. Traditional society
2. Pre condition to take off
3. Take off
4. Drive to maturity
5. Age of mass consumption
Evaluation
Devalues traditional social institutions
Promotes western capitalist values
It tends to benefit elite groups
It assumes that resources will be unlimited, therefore ignoring
ecological issues.
Ignores inequality within and between countries
However;
Attempts to explain why poorer countries failed to develop into
modern societies.
It also focus on social progress.…read more

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