The paper examines the difference between the concepts of economic growth and economic development discussing GDP and other indicators of economic growth, and identifying the factors that determine the quality of life and sustainable economic development.
The paper examines the economic growth of Australia seeking to identify whether it has an adverse impact on personal wellbeing, justice and sustainability. The philosophical and social aspects of justice and fairness are discussed; the factors providing for social and personal wellbeing are reviewed; the areas affected by economic growth are considered with reference to academic opinions including environmental, social and financial costs.
The paper offers a review of literature on the causes of the rapid growth of East Asian countries like Singapore, Taiwan and Hong Kong. Opposite opinions are discussed: one suggesting that the reason for the rapid growth is increased factor accumulation, while the contradictory opinion states that factor accumulation alone cannot account for the growth.
The paper describes the concepts of the modernisation theory and its history. The dependency theory is outlined showing that it was derived from the weaknesses of the modernisation theory. Suggestions on how to improve the conditions of the poor nations are offered; practical examples are given
The work discussed Keynesian theory of economic growth. The effects of rising interest rates on the consumer spending and business expectation are discussed in detail. It is shown that in 2005 50% of the UK businesses issued profit warning due to difficult trading conditions in the country. In turn those were a result of rising world oil prices, increasing domestic and foreign competition and expectation of the consumer spending to fall in the future.
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