Economic Developement

Running Head : ECONOMIC DEVELOPMENTEconomic DevelopmentNameInstitutionEconomic Development1 ) Redistribution and Growth in gross domestic product Par CapitaEconomic development can hardly be achieved by income redistribution . Among several reasons include fact that poor countries have teensy funds for that purpose . Attempts to increase distributable funds by tax revenue or any other means could leave the parliamentary law even worse off . In addition , the general scantness in these countries can hardly be controlled by means of redistribution policies the amount received by individual citizens writhing low poverty might not help much in overcoming their plight . Poor nations that carry a counsel this route therefore take longer in achieving the desired sparing emersionEconomic growth through gradual improvement in GDP par capita is the surest way of taking a hunting lodge from destitution to prosperity . This entrée enables individuals to take part in the process of improving their lives with token(prenominal) reliance on the state . Knowing that rewards of enterprise would light to the producing individual leads to increase in respective individuals efforts . The entire society thus embarks on upward GDP growth that improves boilersuit standard of living . The role of the state in this forward motion is to provide enabling environments for individuals to embark on reducing poverty in best ways they know how2 ) Knowledge and endogenic technological first appearanceThe application of knowledge and technological innovation in societies provide strong foundation for continued economic growth through generations . Currently , unquestionable countries have applied the deuce tools in their economic development processes , which have resulted to even higher(prenominal) living standards . This is in consideration that more direction and access to technological know-how is directly collated with economic productivity witnessed in developed nations . People become more productive as little time is used on each in tasks individuals be left with more time that get dedicated to innovation , which fosters further growthDeveloped nations have greater access to education and technology which explains their continued economic growth .

On the other present , the struggling economies have lesser of the two tools , which have resulted to economic stagnation for generations . Developing institutions that serve in access to education and fosters technological innovation is therefore a requirement that ontogeny nations cannot afford to ignore . On the other hand , the economically struggling countries can access the technology developed in prosperous country and therefore foster development in their respective economies3 ) North s Economic Development PuzzleDouglas North , the Nobel honourable institutional economist , has highlighted reasons for disparities in economic growth among nations His central theme holds that economically prosperous nations have set straitlaced institutional frameworks of political economy , which poor nations have historically failed to adopt (North , 1998 . These institutions have enabled respective economies be friendly for individuals to insert in the production process . North states that successful institutions ar the ones that provide institutions with lower transaction costs (North 1997 . This results to increased engagement between societiesThe institutions developed in respective economies hugely suppose on local practices and belief systems . Indeed , it is from these systems that societies develop institutions that aid participation...If you want to get a full essay, order it on our website: Ordercustompaper.com

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