Meaning of Capital Formation All the man-made factors used in further production are known as capital. Capital formation (the process of capital formation), therefore, refers to an addition to the stock of capital in an economy over time. It is a long-run process and it increases the productive capacity of an economy. Out of earned […]
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The countries in which the process of development has started but is not completed, have a developing phase of different economic aspects or dimensions like per capita income or GDP per capita, human development index (HDI), living standards, fulfillment of basic needs, and so on. The UN identifies developing countries as a country with a
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Every economy needs to invest its scarce resources in the production of capital goods and consumer goods. Both sorts of goods have their relevance. Capital goods add the capital stock and raise the economy’s productive capacity. Investing in capital goods is essential to raise the long-term production potential. Only sufficient investment in capital goods can
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Economic growth can be defined as the increase in the real national product or output over time. Economic growth during any given period is determined or expressed as dY/Y. Therefore, economic growth must mean that an ever-increasing quantity of goods and services is available to meet the needs of the economy over time. To be
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Learning ObjectiveTo discuss the achievements of development planning in SAARC Countries SAARC Countries have experienced several changes and improvements because of economic planning in the region. The region has completed more than five decades of economic planning. The South Asian economies have come a long way since the starting of planning in the 1950s. Some
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Introduction South Asian countries are competitive but, in many respects, they are complementary to each other also. All the member countries of SAARC are more or less homogeneous in the sense they have been facing similar nature of challenges in the development of the nation. Some reports have mentioned that the SAARC is failed due
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Concept and Introduction of SAARC After 1945, the trend of the establishment of various regional cooperation organizations like the European Economic Community, the North Atlantic Treaty Organization (NATO), the American Free Trade Organization, the league, and the African Unity Organization, etc. was started. Following the context, the South Asian Association for Regional Cooperation (SAARC) was
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Economic development is a multidimensional process. It is a dynamic process of change. Economic development is a positive change whereby opportunities, the living standard of people, etc. increases along with the economic prosperity of the nation. The measurement of the extent and pace of economic development and expressing it in any specific index is a
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In recent years, development economists have stopped concentrating on national income only. They have started emphasizing the quality and strategy of development. As a part of the quality of development, they have advocated that direct attention should be given to the quality of life. Quality of life refers to the degree of the economic well-being
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Economic growth is the steady procedure by which the productive capacity of the nation or economy is increased over time to bring an increased standard of living and national output. It is affected by different economic as well as non-economic factors. The different sources of economic growth or factors affecting economic growth are pointed by
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