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Paper analysis - Essay Example

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Economic growth presides economic development; economic growth is the increase in GDP of the economy that is calculated over a…
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Download file to see previous pages... The surplus agricultural products will feed both the people working in the farm and those in other economic sectors.
On the other hand, lack of adequate natural resources is not a limitation to economic growth because; In the process of economic growth, economic activities depend much more on the use of physical and human capital. Countries like Japan and other South East Asia countries have made themselves economic growth with limited natural resources endowments, and have used more of the physical and human capital.
Human resource is the physical labour and the stock of labour in the form of skills. A large labour force implies a more productive manpower to offer services to the various industries. A strong education based economy can produce a skilled labour force. This in return will improve the living standards of its employees through the salaries the workers receive from the services they lender.
(iii) Capital contributes to the growth by overcoming the bottlenecks in agriculture. The limited availability of fertile land for cultivation can be overcome by raising arable land production via intensive farming.
According to Walter Rostow’s, describes economic development to follow a certain order to achieve full development of the economy. He argues that within civilization chronological economic stages of modernization are followed. Walter identifies five stages; these stages include;
2. The precondition of take-off: this is the second stage of development. During this stage of development, the rates of investment are getting high. This kind of development comes as a result of the industrial revolution. The produce from agriculture is, therefore, further processed in the developed industries. Workforce of the primary sector becomes redundant. This stage may last for about a century.
3. The take-off: in this stage there is dynamic economic growth. The main feature in this platform is the capability of the economy to withstand its progression. This ...Download file to see next pagesRead More
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