|Common Characteristics of Economic Development|
characteristic of economic development
Before explaining the economic questions above, it is necessary to understand that development is different from economic growth.
According to Sadono Sukirno (1996), the notion of economic development is an effort to increase per capita income while utilizing potential economic power with the use of real economics in using technology, investing, adding knowledge and others.
Meanwhile, economic growth is the process of increasing the production capacity of an economy which is manifested in the form of an increase in national income.
A country is said to experience economic growth if there is an increase in real Gross National Product (GNP) in that country. Economic growth is an indication of the success of economic development.
The difference between the two is that the success of economic growth is more quantitative in nature, that is, an increase in income standards and the level of output produced.
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On the other hand, economic development is more qualitative in nature, not only increasing production, but also changes in production structure and input allocation in various sectors of the economy, such as in institutions, knowledge, social and engineering.
Back to some of the questions above. The following are a number of characteristics of economic development that are common in a country.
Increase in Per Capita Income
The first characteristic of a development economy is per capita income. This is the only indicator of the success of economic development is the increased income per capita due to a good economy.
However, this increase in per capita income must take place in the long term. In addition, this does not mean that the country's per capita income must continue to increase.
A country may experience natural or political disasters that result in a decline in the country's economy. However, this condition is only temporary. In essence, the country's economic activities on average increase from year to year.
The number of people who continue to grow in a country does not necessarily indicate the success of economic development in that country. The large population causes various problems, such as stunted economic growth, incidence and crime rates.
Instead of population growth, population control is a more appropriate feature of the development economy. In the book Population: Theory, Facts and Problems (2010) by Achmad Faqih, control is the restriction of population growth, generally by reducing the number of births.
In Indonesia, one of the Government's efforts to control the population is through the Family Planning Program (KB). Indonesia itself is a country that has a large population.
Every year the population of Indonesia has increased. In 2019, Indonesia's population reached 267 million. The family planning program is considered quite successful in suppressing Indonesia's population growth rate.
Application of Science and Technology
Science and Technology (IPTEK) continues to grow. However, the development of science and technology will be meaningless if accompanied by its implementation. So, economic development in a country must inevitably lead to the potential application of science and technology to improve the welfare of its people.
Economic development must be able to provide solutions to various problems in a country through the application of science. If previously economic development was full of labor and capital, it is time to rely on the application of science and technology as the mainstay of creating added value.
Quality of Life Index
The quality of life index is used as an indicator of the success of economic development because the better the quality of life index, the better the economic development carried out. In general, the quality of life index is divided into three parts. The three are the average life expectancy, infant mortality rate, and literacy rate.
Let us examine these three sections. If the economic development in a country goes well, then the average life expectancy will increase. This is seen from the fulfillment of food needs to the community evenly.
Communities can meet their own needs so that there is no shortage of food. Not only food, access to various health facilities also tends to be easy. If people are sick, they can also fulfill their medical needs.
The second part is the infant mortality rate. If economic development goes well, the infant mortality rate will decrease. This is evidenced by the fulfillment of adequate nutrition, nutrition and health services from pregnant women to babies born.
the next is the improvement of an economy, the literacy rate of development is increasing. This can be seen from the increasing number of facilities that support the literacy rate. The community is also easy to communicate well with the literacy so that they can understand the development of a country.
Economic development can also change structure. This construction change, for example, tracks from agricultural activities to non-agricultural activities to services.
Changes can also include the scale of productive units from individual enterprises to legal firms, or changing the working status of workers to a development economic goal.
This structural change can have both positive and negative implications. The positive implications, for example, are the opening of new job opportunities.
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Meanwhile, the negative impacts include reduced green land due to excessive infrastructure development, the emergence of various kinds of environmental pollution, and reduced agricultural land due to evictions.
Social problems can also surface due to structural changes, such as population density due to urbanization.