UNDERSTANDING DEVELOPMENT ECONOMICS

The concept of economic development is distinct from economic growth and combines three elements, including self-sustaining economic growth, structural changes in production and technological progress. New institutional school development theorists and neoclassical development economists add to these elements institutional modernization that allows markets to rationally guide the economic decisions of individuals. Modernization theorists add political and social development, while the entrepreneurship school emphasizes socio-cultural change. Finally, the failures of the growth process experienced by developing countries lead us to add the increase of well-being for the benefit of the greatest number to the list of characteristics of economic development that must be conceived in the sustainable development approach.