Syifa Irbah

FHUI KKI
1506711755

INTRODUCTION OF ECONOMIC
DEVELOPMENT
Economic Development is a specialized branch of economics studying the
problems of economic development in countries and Economic Development itself is
a process / change continuously the business of the state to enlarge or increase income
per capita
Understanding Economic Development
Explained economic development as a process that causes the per capita income of a
resident of a community to rise in the long term.
Nature of Economic Development or Economic Development
A process which means the changes that occur continuously
Attempts to raise the per capita income, and
An increase in income per capita that should continue in the long term.
Goal of Economic Development or Economic Development
Improve inventory and expand the division / equitable distribution of needed supplies
to live, such as housing, health and the environment.
Lifting the living standards augment and enhance their opinions and provision of
employment, better education, and a greater attention to the cultural values of
humanity, which is solely not only to meet the material needs, but to raise the
awareness of the dignity of both individuals and nationally.
Expanding the reach of social and economic choice for all individuals and national
levels by freeing them from slavery and dependence attitude, not just relationships
with other people and other countries, but also from sources ignorance and suffering.

Strategy of Economic Development or Economic Development

Improving real output / high productivity continuously increasing. Due to the
high output this will eventually be able to improve and expand the supply of basic
goods for a living, termaksut provision of housing, education, and health.
The level of development of high employment and low unemployment is
characterized by the availability of sufficient jobs.
Reduction and eradication of inequality
Social change, mental attitude, and behavior of the public and government agencies.

Syifa Irbah
FHUI KKI
1506711755

There are some theory from Karl marx :

The Marxian analysis is the greatest and the most penetrating examination of the
process of economic development. He expected capitalistic change to break down
because of sociological reasons and not due to economic stagnation and only after a
very high degree of development is attained. His famous book Das Kapital is known
as the Bible of socialism (1867). He presented the process of growth and collapse of
the capital economy
Assumptions of the Theory:
Marxian economic theory of growth is based on certain assumptions:
1. There are two principal classes in the society. (1) Bourgeoisie and (2) Proletatiat.
2. Wages of the workers are determined at subsistence level of living.
3. Labour theory of value holds good. Thus labour is the main source of value
generation.
4. Factors of production are owned by the capitalists.
5. Capital is of two types: constant capital and variable capital.
6. Capitalists exploit the workers.
7. Labour is homogenous and perfectly mobile.
8. Perfect competition in the economy.
9. National income is distributed in terms of wages and profits.
Marxian Concept of Economic Development:
In Marxian theory, production means the generation of value. Thus economic
development is the process of more value generating, labour generates value. But high
level of production is possible through more and more capital accumulation and
technological improvement.
At the start, growth under capitalism, generation of value and accumulation of capital
underwent at a high rate. After reaching its peak, there is a concentration of capital
associated with falling rate of profit. In turn, it reduces the rate of investment and as
such rate of economic growth. Unemployment increases. Class conflicts increase.
Labour conflicts start and there is class revolts. Ultimately, there is a downfall of
capitalism and rise of socialism.
Economics Provided a scientific theory to Predict the effects of legal sanctions
on behavior. To economists, sanctions look like prices, and presumably, people
respond to Reviews These sanctions are much as they respond to prices. People
respond to higher prices by consuming less of the more expensive good; presumably,
People also respond to more severe legal sanctions by doing less of the sanctioned
activity. Economics has mathe- matically precise theories (price theory and game
theory) and empirically sound methods (statistics and econometric) for analyzing the
effects of the laws of implicit prices that attach to behavior.

Syifa Irbah
FHUI KKI
1506711755

To give you a better idea of what law and economics is about, we turn to some
ex- amples based upon classics in the subject. First, we try to identify the implicit
price of the legal rule that attaches to the behavior in each example. Second, we
Predict the conse- conse- of variations in that implicit price. Finally, we Evaluate the
effects in terms of efficiency and, where possible, distribution.
Example 1: A commission on reforming criminal law has identified cer- tain
white-collar crimes (such as embezzling money from one's employer) that are
typically committed after rational consideration of the potential gain and the risk of
getting caught and punished. After taking extensive testimony, much of it from
economists, the commission decides that a monetary fine is the Appropriate shoulder
ishment for these offenses, not Imprisonment. The commission wants to know, "How
high should the fine be?"
The economists who testified before the commission have a framework for anSwering this question. The commission focused on rational crimes that seldom occur
unless the expected gain to the criminal exceeds the expected cost.
The expected cost depends upon two factors: the probability of being caught
and convicted and the sever- ity of the punishment. For our purposes, define the
expected cost of crime to the criminal as the product of the probability of a fine times
its magnitude.