IE270 1st Edition Lecture 9 Outline of Last Lecture II. In class film “A place at the Table”III. General Overview and key pointsOutline of Current Lecture IV. Agriculture, food and economic developmentV. Economic developmentVI. Common measuresVII. Historic viewsVIII. History of economic developmentCurrent LectureEconomic DevelopmentDefinition—a sustained increase in the standard of living or wellbeing of a populationNormally accomplished by increasing its stock of capital including; - Physical capital (land, resources, manufactured goods)- Human capital (well trained/experienced workers, tradespeople, professionals)- Knowledge capital (technology, information, know how, computing power, communication networks)- Social capital (public and private institutions, legal system, social networks)Common Measures--“standard of living” or “wellbeing” can be measured by:- Gross Domestic Product (GDP) per capita (=per person)- Per capita income- Measures of health, mortality, life-expectancy- ‘Happiness Index’Capital can be measured by:- Total value of physical capitalThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Value of publicly traded companies (capitalization of the stock market)- Levels of education ( k-12, college, PhDs)Historic Views Historically, two views of economic development1. Agriculture led economic development- Productivity gains in agriculture improve- Releases labor that can work in other trades/industries- Those trades/industries then contribute to improve agriculture further (by creating machinery, fertilizers, markets, and trade)2. Industry led economic development- If agriculture is unproductive, it is better to take investments and people away from it and plug them directly into industry where they will have greater effect on developmentHistory of Economic Development (See D. Gale Johnson Reading)- Preindustrial economic development in today’s wealthy countries was led by slow steady gains in agricultural productivity up through 1800- 75-80% of the working population engaged in farming- Persistence of famines indicate precariousness of the food supply- Predominantly rural population- Life expectancy was the same as Roman
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