Definition of concepts
Development
Refers to the improvement of living standard of the people in all aspects of life such as economical social and cultural and spiritual and materially
Or
Refers to the positive change in human life and the increase of quality, quantity and values of goods and services produced in a given society
Or
Refer to the improvement of quality of life of all people in a given nation or society
Types of development
There are two types of development known as:
- Economic development
edu.uptymez.com
Which is shown by the improvement of an agricultural production industrial production trade activities and material production activities?
2. Social development
This is shown by the improvement of social welfare of the people in a given community such as improvement of education, science and technology, health service, transport and communication service and other social services provided in the society.
Levels of development
Development can be described at two levels such as
A. Individual (personal) level.
This is shown by the increase of skills capacity great freedom, creativity self discipline and material well being.
The common indicators of individuals development includes
- Level of education
- Diet and eating habits
- Rate of income
- Tools used in production process
edu.uptymez.com
National development level
This means better living condition for all people in the country in terms of moral and spiritual improvement and material well being
The common indicators of national development include:
edu.uptymez.com
INDICATOR OF ECONOMIC AND SOCIAL DEVELOPMENT
The economic and social development of any country can be measured by the following indicators
- Per capita income
edu.uptymez.com
This is the average of income of the people in a country and is obtained by dividing the total annual income of the country by the number of people of that country
The formula of calculating the per capita income is
NB;
GDP means gross domestic product.
GNP means gross national income
Usually per capita income varies from developed countries to the developing countries. In the developed countries their per capita income is higher than in developing countries
For example in 2000 the Tanzania‘s per capita income was USD 500 while in USA the per capita income USD 2000
2. Life expectance
Life expectance refers to the number of years which a person is expecting to live before the life birth day usually in developed countries people live for many years compared to the life span in developing countries this is due to problems like poor diet poor health services lack of security and presence of disease
E .g 1980’s the life expectancy of Tanzanians was above 60years while in UK it was above 90years.
3. Daily food supply
The amount of food supplied is measured in colonies used by a person per year and the number of meals which a person used to get daily.
Usually in developed countries people use a lot of calories and get free food or free meals per day but in developing countries people obtain a little calories and get just one meal per day this is because in developing countries the supply of food is not sufficient
4.
Mortality rate
This refers to the risk of possibilities of death of people in a given country. Usually in developing countries like Tz the mortality rate is higher compared to developing countries like Britain, Japan and USA
In developing countries the mortality rate is higher because of poor housing services and presence of diseases.
Therefore if mortality rate is low the life expectance increases and vice versa
5. Crude death rates
This refers to the number of children who died before the age of 5yrs. In developing countries usually crude death rate is higher compared to developing countries this is due to poor reproductive health services lack of family planning education and poor mortality health services
6. Literacy rate
Is the ability of a person to be able to read , write and count, therefore literacy rate refers to the number of people who are able to read ,write and count in the country. In developing countries literacy rate is low while in developed countries literacy rate is higher
E .g. Tanzania‘s literacy rate is low because many children do not go to school the number of schools are not enough and many people cannot offered the expenses of education as a result the number of illiterate people is increasing.
7. Energy consumption
The amount of energy used in a country such as electricity fuel, coal and other sources of power depend on the level of development reached by the country. The consumption of energy in developed countries is higher compared to developing countries which is due to the development of the industrial sector science and technology and improvement of living standard
Other indicators of economic and social development include
- The number of people in agriculture centre
- The number of patient per doctors
- The number of student per teacher
- The rate of population growth
-
The level of science and technology
edu.uptymez.com
THE FACTORS FOR ECONOMIC AND SOCIAL DEVELOPMENT
The economic and social development will take place if the following vectors will be available
Land
This is the basic fundermental factor for economic development in the society it is the basic factor because nearly all social and economic activities are taking place on the land surface, i.e. agriculture, pastoralist, mining, lumbering, transport and communication plus settlements.
Therefore without land or resources, the economic and social development cannot take place
Labour force
This is the ability and skills which people need to have in order to be used in the production of goods and services, there are three basic sources of labour force such as
- Human labour force
edu.uptymez.com
Which is the basic source of labour and is divided into skilled labour, semi- skilled labour and un skilled labour
- Animal labour
-
Machine labour
Note : Human is the basic source of labour which is also used to drive other sources.
edu.uptymez.com
Capital
This is the money or anything worth which can be invested in business, capital is very important factor for a business to start/ take place because it is used to buy equipment pay workers, and to meet other expenses of the business. There are different types of capital such as material capital, money capital and human resources capital therefore if capital is reliable it facilitates the establishment and development of different projects.
Raw materials
These are materials in natural form or material is unprocessed condition, examples crops, minerals animal product timber, logs and poles. Raw materials are needed in order to enable production of goods and services to take place.
Also raw materials are very important for the development of industrial sector
Entrepreneurs
These are people who are ready to start production venture or an enterprise by using their money and skills in production of goods and services.
They are risk takers because the production venture cannot guarantee them to have profit, therefore more enterprises in the country means more employment opportunities and reliable source of income.
Tools and equipment
These are working instruments which enable the labour force and production process to take place effectively. There are several types of working instruments such as agriculture, tools, mining tools, transport facilities fishing tools and industrial equipments. The use of modern and better working tools increases the efficiency and productivity of goods and services and improving the quality of goods and services.
Good infrastructure
These are the means of transport, communication, storage, facilities and institution which facilitates the movement of goods and services money and people from one place to another availability of good infrastructure such as roads railways air ways water ways banks and ware housing improve the economic and social development in a country.
Food government
The government must work hand in hand with the help of the people to ensure the existence of the economic and social development in the country. Usually a good government is responsible to create a conducive environment and good policy in order to motivate local investors and to attract foreign investors in the country. Also a good government is responsible to create political stability and security of people and their properties in the country.
Science and technology
This refers to the use of modern and sophisticated machines in various production process, usually the use of modern science and technology in production process simplify the working process, increase efficiency and improve productivity.
Therefore the level of science and technology which is applied in a given country determines the rate of economic and social development
FINANCIAL INSTITUTION AND ECONOMIC DEVELOPMENT
FINANCIAL INSTITUTIONS
Are the public or private organizations responsible for providing financial services. The financial services provided include issuing money, providing loans and keeping valuable items.
There are two types of financial institutions which are known as
- Banks
- Non-banks
edu.uptymez.com
Banks
Banks are the financial institutions which perform the following functions:
- To mobilize funds from the public by encouraging them to open different accounts in the banks
- To provide loans to customers or investors
- To keep valuable items such as diamonds, gold and wills
- To transfer money from one place to another or from one person to another through travelers, cheque, telegraph transfer etc
edu.uptymez.com
There are 5types of banks which operate in Tanzania such as
- Bank of Tanzania [BOT]
- Commercial bank
- Saving banks
- Merchant banks