ECONOMIC GROWTH AND DEVELOPMENT 

SECOND TERM E-LEARNING NOTE

SUBJECT: ECONOMICS

CLASS: SS 3

SCHEME OF WORK

WEEK 1 

Topic :

ECONOMIC GROWTH AND DEVELOPMENT 

Objectives:

• Define economic growth and development
• Explain the difference between economic growth and development
• Identify the characteristics of underdevelopment
• Discuss possible solutions to underdevelopment
• Identify strategies for economic development

RECOMMENDED BOOKS

• Amplified and Simplified Economics for SSS by Femi Longe
• Essential Economics for SSS for SSS by C E Ande
• SSCE Economics Past question pack.

Materials:

• Whiteboard or blackboard
• Markers or chalk
• PowerPoint presentation
• Handouts on economic growth and development

WEEK ONE

ECONOMIC GROWTH AND DEVELOPMENT

CONTENT

• Definition and distinction between economic growth and development.
• Underdevelopment and its characteristics.
• Solutions to underdevelopment.
• Strategies for economic development.

Economic Growth: A country is said to achieve economic growth when there is an increase in the volume of National output (National Income) arising from an expansion in production.  When there is economic growth, it shows in the form of an increase in income level, an expansion in the labour force, an increase in the total capital stock of the country and a higher volume of trade and consumption.

While Economic development means economic growth coupled with the improvement in the living standard of the people of the country.  This arises from equitable distribution of the National income.  Economic development reveals all aspects of economic activities and emphasizes more on distribution of facilities between various areas.

CHARACTERISTICS OF ECONOMIC DEVELOPMENT

1. Improvement in the general welfare of the people.
2. Equitable distribution of the National income
3. Reduction in the level of unemployment.
4. Increase in real income of the citizen.
5. Increase in the total capital stock.

In a nutshell, while economic growth emphasizes the increase in the volume of National output, Economic development stresses growth coupled with improvement in the general welfare, of the people arising from equitable distribution of the National Income.

EVALUATION

1. Describe economic development.
2. State five features of economic development.

UNDERDEVELOPMENT

A country is said to be underdeveloped when she lacks the human and material resources needed to improve the welfare of her citizens.

WHY COUNTRIES ARE CONSIDERED UNDER DEVELOPED OR DEVELOPING

Most West African countries and part of Asia are considered to be underdeveloped or developing due to the following features:

1. Overdependence on primary source of production e.g. Agriculture
2. High dependency on foreign countries for survival.
3. Poor living standard – poor housing, hunger.
4. Poor medical facilities.
5. Poor infrastructural base.
6. High level of illiteracy.
7. Increase in unemployment rate.
8. Inequality in the distribution of income.
9. Political and economic instability.
10. Low savings and investment arising from low per capital income.

EVALUATION

1. Define under development.
2. Mention and describe five features of an under developed country.

CAUSES OF UNDERDEVELOPMENT

1. Low level of saving arising from low per capital income
2. As stated above, where savings is low, investment as well will be low resulting to underdevelopment.
3. Political instability which transient to frequent change in economic policies.
4. Poor planning and implementation.
5. Corruption and embezzlement of fund by public officials.
6. High rate of population growth.
7. Over-reliance on importation.
8. Poor capacity building.
9. Poor infrastructural base
10. Low level of Technology.

SOLUTION TO UNDERDEVELOPMENT

For a country to eradicate poverty and be considered developed.  The following steps should be taken.

1. Capital accumulation i.e. encourage savings towards investment.
2. Capital formation – Investment should be made on social infrastructure and businesses.
3. Engage in Foreign Trade – In doing this the country must bargain for a favourable term of Trade.  Industrialization is important, this will ensure that the country export more than she imports.
4. Borrowing from Financial Institution both local and foreign e.g. IMF, World Bank.  But effort must be geared towards enduring that loan obtained is used for capital project that will add value to the economy.
5. Capacity Building – Training of man power is very essential.  This could be achieved through establishment of vocational centres, colleges, universities to enrich the technical know-how of the citizens.
6. Adoption of socialist ideology since capitalist ideology is capable of widening the gap between the rich and the poor.

STRATEGIES FOR ECONOMIC DEVELOPMENT

1. Diversification of the economy.  That is to say Nigeria should develop other sectors apart from oil.
2. Provision of social infrastructure e.g. roads, railways, school, hospitals etc.
3. Ensuring political stability.
4. Export promotion
5. Manpower development
6. Capital accumulation
7. Development of market
8. Borrowing from Foreign Lenders but with favourable interest rate.

READING ASSIGNMENT

1. Amplified and Simplified Economics for SSS by Femi Longe page 447-450.
2. Essential Economics for SSS by C E Ande page 369 – 402.

WEEKEND ASSIGNMENT

1. Economic growth is the ____________
2. rate of increase in a country’s full employment and real output.   B. rate of increase in a nations total population rate.C. increase in inflation.D. growth in birthrate.
3. An increase in the quantity of goods and services produced in a country which raises her national income is known as ____ A.  economic development B.  economic growth 
4. domestic investment D. productivity
5. Economic development is reflected in ____ A.  Scarcity of capital B.increase in the price level  C. decline in agricultural production D. increase in productive capacity
6. The level of Economic development is low in Nigeria because ____ A.  planning has no practical relevance  B. of the pattern of consumers spending C. the country is too large D. of ineffective plan implementation    
7. The stability of the Nigeria economy depends mainly on the export price of ____ 
8. groundnut B. cotton C. cocoa D. mineral oil

THEORY

1. What is economic development? State its characteristics.
2. How is economic growth different from economic development?

Economic growth refers to an increase in the production of goods and services in a country over a period of time. This increase in production can be measured using indicators such as Gross Domestic Product (GDP), which represents the total value of all goods and services produced in a country during a given period. On the other hand, economic development refers to a more comprehensive process of sustained and equitable growth, which includes social, political, and institutional changes that improve people’s well-being and quality of life.

Underdevelopment is a state in which a country’s economic, social, and political systems are not sufficiently developed to support sustained economic growth and development. Characteristics of underdevelopment may include low levels of income, high poverty rates, low levels of education and health, inadequate infrastructure, limited access to capital and technology, and weak institutions.

Solutions to underdevelopment typically involve a combination of economic, social, and political reforms that address the underlying causes of underdevelopment. These may include increasing investment in education and health, improving infrastructure, promoting the development of small and medium-sized enterprises, and creating an enabling environment for private sector investment. Other strategies may focus on strengthening institutions and governance, improving access to credit and technology, and promoting trade and investment.

Strategies for economic development may include policies and programs that promote investment, trade, and entrepreneurship, as well as measures to promote human development and reduce poverty. These may include policies that encourage private sector investment, such as tax incentives and investment guarantees, as well as measures to improve access to finance, technology, and markets. Other strategies may focus on promoting social and institutional development, such as strengthening governance and the rule of law, promoting transparency and accountability, and improving access to basic services such as education and health care. Ultimately, successful strategies for economic development require a long-term vision, a commitment to reform, and a focus on building the necessary institutions and human capital to support sustained growth and development

Evaluation

1. Which of the following is a strategy for economic development? a) Increasing government regulation of the economy b) Focusing solely on increasing GDP c) Promoting human development and reducing poverty d) Ignoring the social and political dimensions of development
2. Which of the following is an example of a social development goal? a) Increasing exports b) Reducing income inequality c) Attracting foreign investment d) Privatizing public services
3. Which of the following is an example of an economic development strategy? a) Strengthening institutions and governance b) Reducing investment in education c) Limiting access to capital and technology d) Increasing government corruption
4. Which of the following is an example of a measure to promote private sector investment? a) Increasing trade barriers b) Limiting access to capital c) Offering tax incentives to investors d) Reducing access to technology
5. Which of the following is an example of a measure to promote human development? a) Reducing access to health care b) Privatizing public education c) Increasing access to clean water and sanitation d) Limiting access to technology
6. Which of the following is a characteristic of successful strategies for economic development? a) Short-term focus on increasing GDP b) Lack of commitment to reform c) Emphasis on building institutions and human capital d) Focus on limiting access to technology and capital
7. Which of the following best defines economic growth? a) An increase in the production of goods and services in a country b) An increase in a country’s population c) An increase in the standard of living in a country d) A decrease in a country’s unemployment rate
8. What is the main difference between economic growth and economic development? a) Economic growth focuses on increasing GDP, while economic development focuses on improving people’s quality of life. b) Economic growth focuses on increasing exports, while economic development focuses on increasing imports. c) Economic growth is a short-term process, while economic development is a long-term process. d) Economic growth and economic development are essentially the same thing.
9. Which of the following is a characteristic of underdevelopment? a) High levels of income and wealth b) Strong institutions and governance structures c) Adequate infrastructure and access to services d) Low levels of education and health
10. What are some possible solutions to underdevelopment? a) Promoting private sector investment and entrepreneurship b) Increasing trade barriers and protectionism c) Reducing investment in education and health d) Limiting access to technology and capital

Lesson Presentation

Introduction (10 minutes):

• Welcome students and introduce the topic of economic growth and development
• Ask students if they are familiar with these terms, and if so, what they know about them
• Explain that economic growth and development are important concepts in understanding how countries can improve their standard of living

Body (40 minutes):

• Define economic growth and development, and explain the difference between the two concepts
• Discuss the characteristics of underdevelopment, including low levels of income, high poverty rates, and inadequate infrastructure
• Review possible solutions to underdevelopment, such as promoting private sector investment, increasing investment in education and health, and improving access to capital and technology
• Identify strategies for economic development, such as promoting human development, strengthening institutions and governance, and improving access to basic services
• Use PowerPoint slides and handouts to illustrate key concepts and provide examples
• Encourage class discussion and questions

Conclusion (10 minutes):

• Summarize key points covered in the lesson
• Emphasize the importance of economic growth and development for improving people’s quality of life
• Encourage students to further explore the topic and ask questions if they have any
• Provide resources for further reading and research

Assessment:

• Give students a short quiz or worksheet to test their understanding of the key concepts covered in the lesson
• Use class participation and discussion to assess student engagement and comprehension
• Provide feedback on student performance and encourage them to continue learning about economic growth and development

Weekly Assessment

1. Economic growth refers to an increase in the ________ of goods and services in a country over a period of time.
2. Economic development is a more comprehensive process of sustained and equitable growth, which includes ________ changes that improve people’s well-being and quality of life.
3. Underdevelopment is a state in which a country’s economic, social, and political systems are not sufficiently developed to support sustained economic growth and ________.
4. Characteristics of underdevelopment may include low levels of income, high poverty rates, inadequate infrastructure, limited access to capital and technology, and weak ________.
5. Solutions to underdevelopment typically involve a combination of economic, social, and political reforms that address the underlying causes of underdevelopment, such as increasing investment in education and ________.
6. Strategies for economic development may include policies and programs that promote investment, trade, and entrepreneurship, as well as measures to promote human development and reduce ________.
7. Successful strategies for economic development require a long-term vision, a commitment to reform, and a focus on building the necessary institutions and ________ to support sustained growth and development.
8. Private sector investment, such as tax incentives and investment guarantees, is an example of a policy that can promote ________.
9. Strengthening governance and the rule of law, promoting transparency and accountability, and improving access to basic services such as education and health care are examples of social and ________ development.
10. Ultimately, the goal of economic growth and development is to improve people’s quality of life by promoting sustained and equitable growth that benefits all members of _________.

Test

1. What is economic growth?
2. What is economic development?
3. What is underdevelopment?
4. What are some characteristics of underdevelopment?
5. How can investment in education and health help reduce underdevelopment?
6. What are some strategies for economic development?
7. What is the difference between economic growth and economic development?
8. How can private sector investment help promote economic development?
9. What are some examples of basic services that are important for economic development?
10. What is the ultimate goal of economic growth and development?