LUCIA NTSHANGASE

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Learning activity 5

18 Apr 2021, 10:38 Publicly Viewable

Development refers to change or progression in almost all areas.

Factors that constitute development:

1. Growth and Structural change.

For development to occur, structural change and growth is required. The core focus of the economy goes from primary to tertiary sector. Less developed countries get their main source of income from the primary sector. For example South Africa (SA) uses mining, farming, fishing and forestry. Developing countries get their income mostly from the secondary sector. For example SA provides manufactured goods such as furniture by transforming raw materials into finished goods or products. The tertiary sector takes over the total output of the economy in developed countries that have a high national income, hence SA does not apply to this sector.

2. Distribution of income.

For countries to develop, a fairly even distribution of income is required, meaning that there's incomeĀ improvement for all. Meaning income distribution is fair, but the idea of "fair" is subjective. Equal distribution of income may speed up growth and encourage economic development. In a nation, division of wealth and income is one way in which the wealth and income of a nation is divided fairly among its population.

3. Modernization.

The majority of developmentĀ theorists say that societies should move from traditional to modern societies by the process o modernization in order for development to occur. A country is only modernized when it has adapted or embraced new and advanced technologies. For example SA has also adapted to the modernization of online payments as key to economic growth.

4. Political transformation.

Development democracy means political growth should come with economic and socio-cultural growth. For example, the political freedom in East Asia is increasing and has an impact on economic growth, but in SA and Zimbabwe, development has not yet been equated with political freedom.