Economic Development

What is Economic Development?
Economic Development is programs, policies or activities that seek to improve

the economic well-being and quality of life for a community.
What “economic development” means to you will depend on the community

you live in. Each community has its own opportunities, challenges, and
priorities. Your economic development planning must include the people who
live and work in the community.
Economic Development Strategies

Though economic development priorities vary, economic development
strategies often aim for common, positive results, such as:
• Creating more jobs and more job variety

• Keeping businesses and getting new ones
• A better quality of life
• More people and businesses paying taxes
• More productive use of property
• Promoting your community’s assets
• Making and selling more local products
• Getting more skilled workers living in your community
What is an Economic Development

Practitioner?
Just like economic development is different for communities, so are the
economic development practitioners that support them. Generally, an
economic development practitioner:
• Plans, designs, and delivers economic development strategies.

• Acts as an important connection between public and private sectors and the
community.
• Takes part in economic development planning and sometimes leads or gives
input into the policy-making process.
• Administers policy, programs, and projects..
Who is Responsible for Economic
Development work?
Many people doing economic development work are economic development
practitioners or Economic Development Officers or “EDOs” for short. Some
people don’t hold the official title in their job, but are doing economic
development work all the time.
Lots of different groups can work in economic development, including:
• Local Indigenous and non-Indigenous governments

• Chambers of commerce
• Technology or business incubators
• Regional development agencies
• Community colleges, universities and research institutions
• Provincial and Federal governments
• Special authorities (like airports, ports, etc.)
• Not-for-profits & humanitarian organizations
• Business and industry associations
• Workforce development organizations
• Neighbourhood groups
• Utilities providers (help with business attraction and growth)
Their role in a community can include:
• Leading economic development planning

• Working toward the community’s mandate or vision for economic development
• Supporting sector relationships
• Communicating and responding to economic development concerns and
opportunities
• Leading projects to enhance economic development
• Providing accountability, ensuring economic development isn't an afterthought
What is an Economic Development

Organization?
Economic development organizations deliver programs, policies, and activities
to improve the economic well-being of their communities.
There are many organizations, regional trusts and Crown corporations

dedicated to the economic development of B.C.
Foundation for Successful Economic
Development
Economic development work needs a strong community foundation. Three
principals for your economic development activities to succeed are:
Community Support
It is important to have the support of your community for everything from
project plans and budgets, to marketing and promotion – your community
members are very important.
Partnerships
Strong partnerships are essential to the success of your economic development
activities. Partnerships will help to leverage resources, build capacity and
encourage collaboration.
Preparedness
Start with an economic development plan and get feedback and approval. Once
community support and partnerships are in place you are ready to get started.
We know communities aren’t one-size-fits-all. Our aim is for these economic

development resources to support your community’s goals, whether you’re
urban or rural, large or small, Indigenous or non-Indigenous.
Determinants of economic development

1. CAPITAL FORMATION Growth rate of national income is determined, to the large extent , by the
rate of capital formation. The higher the rate of capital formation, the greater is the addition to
productive capacity of a nation, i.e., a greater flow of goods & services and higher national income.
Capital Formation depends on income, desire to save and Investment Investment increases income
more due to multiplier To make use of the natural wealth, a necessary amount of capital is needed so
that they can be used to their fullest. If the level of income is low the savings will also be low. In such
a case a country may use foreign capital. The actual requirement of capital depends upon growth
target and capital output ratio.
Capital Formation & Labour efficiency: Increase in stock of capital enables labour to work with
greater efficiency, because efficiency to the large extent depends on the nature and type of the
equipment they are working with. SUPPLY AND DEMAND FOR GOODS & SERVICES: Capital
formation increases productive capacity and expands volume of goods and services produced, and
on the other hand it increases the rate of investment, which in turn creates income for the workers
and increased income creates additional demand for goods produced.
2. NATURAL RESOURCES Availability of natural resources in abundance is an important factor in a
country’s economic development. Some developed countries like the USA, Canada, Australia, New
Zealand, etc. have abundance of natural resources. However, it does not mean that all these countries
that have natural resources in abundance, are among the advanced nations. Countries which intend
to initiate the process of economic growth must direct their efforts to make fuller use of their
existing resources and exploration of new resources. Renewable and non-renewable Resources
Natural Resources Increase income Natural Resources Supply & Demand affect development Per
Capita Employment, Income & Efficiency.
3. Marketable Surplus of Agriculture: The term ‘marketable surplus’ refers to the excess of output
in the agricultural sector over and above what is required to allow the rural population to subsist.
Food for urban population depends on it In case marketable Surplus is not sufficient a country has to
import food grains to feed its population. It give rise to Balance of payment crisis. India has become a
self sufficient country after the success in green revolution. Now we have sufficient marketable
surplus and sometimes export our surplus production
4. Conditions in Foreign Trade: Trade is considered beneficial for both the countries as suggested by
the theory of comparative advantages. Less developed countries should specialize in production of
primary products as they have comparative cost advantage in their production. The developed
countries, on the contrary, have a comparative cost advantage in manufactures including machines
and equipment and should accordingly specialize in them. Developing countries should not totally
rely on the import substitution policy but should also develop it manufacturing sector
Obstacles to Economic Development

1. High rates of population growth - Depending on the circumstances, population growth can
have a positive or negative effect. One of the most significant challenges facing any nation's
economy is the random increase in population. One of the most significant obstacles that could
impede economic growth and development is the increase in the population. Since, economic
resources are frequently insufficient and do not cover the existing population, the large
population is regarded as putting a significant strain on the resources and services provided. For
instance, investment projects that, in turn, promote economic growth may not result in an
adequate number of employees.
2. Low level of the human factor - When there are more people than there are obstacles to
economic growth, people leave the country to find work elsewhere, and immigration from other
countries grows. One of the most crucial aspects of any economic plan is the ability to build
human factors, which necessitates improving all kinds of educational outcomes. One of the most
crucial economic components and factors is the human factor, which in turn increases project
production, boosts economic growth, and shifts the economic cycle. As a result, the state must
work to prioritize all human resources, including university students, institutes, colleges, and
other institutions.as well as every item that is required for their training.
3. Lack of economic resources and infrastructure - The primary driver of economic growth is an
increase in the number of investments, which in turn results in an increase in the number of
employees, their employment, and the amount of work that is done to move the economic wheel
as a whole. Economic development processes are slowed down and the number of unemployed
people rises as a result of weak economic projects. One of the most important ways to achieve
economic development and provide a variety of job opportunities for unemployed people is to
encourage investment and take care of its infrastructure. Investment can also use the resources
available for production to make profits that help support the economy.
4. Poor transportation infrastructure - Transportation is regarded as one of the most important
factors in economic growth, which in turn helps to activate, develop, and improve all aspects of
life. By increasing the cost of freight per unit, poor transportation systems hurt the
competitiveness of industries and the economy. Additionally, it raises ordering and overhead
costs, damages to total inventories, and costs incurred in transit. Moving people and goods costs
less when there is good transportation infrastructure. Productivity in the economy rises as a
result.
5. Inability to come up with creative solutions - In some societies that rely on traditional means of
conducting business, this issue manifests itself in a significant and glaring manner. The total
reliance that many societies and nations have on oil provides perhaps the most prominent
illustration of this. The cost of oil can be reduced by looking for and using alternative methods
more diligently. Due to the severe harm it causes to humans on all levels, developed nations
have become alienated from and reduced their use of oil, although some nations continue to use
it. The improvement and growth of nations' economies are greatly aided by novel solutions

Economic Development

Uploaded by

Copyright:

Available Formats

Economic Development

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Economic Development

Uploaded by

Copyright:

Available Formats

What is Economic Development?

Economic Development is programs, policies or activities that seek to improve

What “economic development” means to you will depend on the community

Economic Development Strategies

• Creating more jobs and more job variety

What is an Economic Development

• Plans, designs, and delivers economic development strategies.

Lots of different groups can work in economic development, including:

• Local Indigenous and non-Indigenous governments

Their role in a community can include:

• Leading economic development planning

What is an Economic Development

There are many organizations, regional trusts and Crown corporations

We know communities aren’t one-size-fits-all. Our aim is for these economic

Determinants of economic development

Obstacles to Economic Development

You might also like