development economics

Development Economics

The subset of economics concerned with improving the economic growth of low-income countries. Development economics may focus on how to implement infrastructure or develop the business environment for growth to take place. It also studies what government policies (if any) would promote growth. Development economics became a major field within economics in the latter part of the 20th century, as more former European colonies became independent.

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development economics

the branch of economics that seeks to explain the processes by which a DEVELOPING COUNTRY increases in productive capacity, both agricultural and industrial, in order to achieve sustained ECONOMIC GROWTH.

Much work in development economics has focused on the way in which such growth can be achieved, for instance, the question of whether agriculture ought to be developed in tandem with industry, or whether leading industries should be allowed to move forward independently, so encouraging all other sectors of society. Another controversial question is whether less developed countries are utilizing the most appropriate technology. Many economists argue for intermediate technology as most appropriate rather than very modern plants initially requiring Western technologists and managers to run them. Socio-cultural factors are also influential in attempting to achieve take-off into sustained economic growth. See ECONOMIC DEVELOPMENT, INFANT INDUSTRY.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005