Despite shortcomings of per capita income as a measure of development, the World Bank, International Monetary Fund (IMF) and other international agencies consider developed and developing countries in terms of Gross National Income (GNI) per capita. The World Bank classifies different countries of the world on the basis GNI per capita representing their development status. The figures of GNI per [...]
The first and foremost economic explanation of underdevelopment or the existence of mass unemployment and poverty of today's developing countries is that in them there has come about a serious imbalance between population and productive resources, especially the stock of capital. This imbalance between resources and population has manifested itself not only in low per capita income and poverty but [...]
Adam Smith is known as father of economics. We get his ideas about economic development from his well-known book, “An Enquiry into the Nature and Causes of Wealth of Nations” (1976) which has tremendously influenced the thinking about economic growth and development. We briefly explain below his ideas about economic development. We will study below that he advocated the policy [...]