SOME QUESTIONS?

What does "development" really means with respect to different countries?

Can you determine which countries are more developed and which are less?

Economic Development

Analyse the prospects of development of Kazakhstan’s economy

LEARNING OBJECTIVES

Distinguish between economic growth and development

Identify factors that affect economic development

Analyse the factors related to the Kazakhstan economy

Decide whether Kazakhstan might achieve its development plan in future

DEFINITIONS

IN PAIRSLook for the difference between economic growth and economic development.

DEFINITIONS Economic growth : increase in output and

incomes over time, measured on a per capita basis

Economic Development : The process that leads to improved standards of living for the population

Human development : Human development is the widening of people’s choices in life to achieve wellbeing

Sustainable development: The use of various strategies and resources optimally to achieve a beneficial balance over the longer term

ECONOMIC DEVELOPMENT

IN PAIRS

Read the passage and identify the factors (indicators) of economic development

TA SK

FACTORS FOR ANALYSING ECONOMIC DEVELOPMENT

MAIN FACTORS

#1 HUMAN DEVELOPMENTa) Life sustenance (access to basic

goods and services)b) Self esteem (respect and

dignity)c) Freedom (from want and

poverty

MAIN FACTORS

#2 INCREASE IN THE QUANTITY OF PHYSICAL CAPITAL

What is “Physical capital” ???

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Is an important source of growthIncreases Productivity of labour

MAIN FACTORS

#3 INCREASES THE QUANTITY OF HUMAN CAPITAL

- Human capital is a source of growth.

How can we increase the productivity of labour???

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1) EDUCATION 2) HEALTH

MAIN FACTORS

#4 DEVELOPMENT OF NEW TECHNOLOGIESWhy is it important ?

It increases the QUALITY of physical capital

BUT

It must be suitable for the country

Eg Climate, ecology and geographical conditions

MAIN FACTORS

#5 INSTITUTIONAL CHANGES

= (rules of organisations)Include- Economic – finance and credit- Legal – contracts and tax- Social – corruption and poverty

- Can you think of examples that hinder growth?

AN EXAMPLE

AUKLAND (New Zealand)

DEVELOPMENT GOALS

GROUP STUDY

Let’s look at Kazakhstan