Economic and Social Development | Civics Form Three
Development
is the improvement of countries economic and social conditions.
Types of Development
1.
Economic
development
Economic growth is an increase in the production of
economic goods and services, compared from one period of time to another.
2.
Social
development
Social development is about improving the well-being
of every individual in society so they can reach their full potential. Social
development is accompanied by good transport and communication services, health
services, education, provision of water and electricity.
Levels of Development
1. Individual
level
Individual
development level refers to the increase of material well-being of a person
like a good house, car and clothes.
2. National
level
National
development level refers to the improvement in social, economic, cultural and
political affairs of a community or country.
Indicators of Economic Growth
Indicators
of economic development are also known as measurements or criteria for testing
the degree of economic development of a country. The following are indicators
of economic growth:
1. High
Per Capita Income
Per
capita income measures the average income earned per person in a given area in
a specified year. It is calculated by dividing the area's total income by its
total population. USA is a developed country because of having high per capita
income of about 150 Millions Tanzanian Shillings.
2. High
life expectancy
Life
expectancy is the average number of years newborn babies can be expected to
live if health conditions stay the same. Japan is a developed country, it has
high life expectancy of about 81 years.
3. High
number of literate people
In
developed countries, many people know how to read and write. This is due to
availability of schools and parents are able to educate their children. Many
people are literate in The United Kingdom.
4. Presence
of employment opportunities
In
developed countries, more people are employed. 90% of graduates in Germany got
employed every year.
5.
Good
health services
Developed countries have better access to health
care. There are better hospitals equipped with qualified doctors. Canada is
among countries with better health care.
6.
Good
housing conditions
Developed countries, have a good house conditions. Construction
focuses on people's safety and accessibility. Australia is an example of
countries with good housing conditions.
Factors for Economic Development
1. Land
Land
provides space where production can take place. Activities such as: trade,
agriculture, mining and many others require land.
Advantages of land
-
It
produce raw materials which are used in industries.
-
It
produce food.
-
It
give employment to people.
-
It
provide pasture to livestock
-
It
provide a place where people live.
2. Labour
Labour
is physical or mental work, also labour can mean people who are working. In
order for development to come, labors are needed. For example, in an industry,
they need labor to get production done.
Advantages of labor
-
It
utilizes other natural resources that are available in production. Without
labor, land and capital cannot be used.
-
It
apply knowledge in production.
3. Capital
Capital
is used to help produce other materials. Examples of capital are, money, tools,
machines and buildings. Capital increases the productivity of land and labour. For
example, money is used to purchase goods for further production.
Advantages of capital
-
It
help in starting a business.
-
It
help business owner to get loan.
-
It
help in time of financial crises.
4. Infrastructure
Infrastructure
includes roads, railways, schools, electricity, telephones, water and others.
Infrastructure is important for economic development. For example the goods
produced have to be transported from the production place to the marketing area
using roads and railway.
Advantages of infrastructures
-
It
help transportation of goods from production area to market.
-
Mobile
phones are important to reduce movement of labor during the marketing process.
5. Technology
Technology
helps people to make different materials. Technology helps people in improving
agriculture, transportation and business systems. Technology simplifies life.
Advantages of technology
-
It
increase production of goods.
-
It
improve different economic activities like agriculture and transportation.
6. Education
Education
is very important in the production process, because it reduces the expenditure
on the foreign labour. Through education, we get our engineers, doctors,
teachers and other workers.
Advantages of education
-
It
reduce expenditure on foreign labor.
-
It
improve efficient of labor.
7. Good
governance
The
government is responsible to see that there is peace in the country so that
people perform their duties harmoniously. If there is no political stability in
the country, the level of production will decrease. The government establishes
policies that will favor people to invest. The government should encourage
people to participate in economic activities by supporting them financially.
The government must enact good policies which will favor the workers in terms
of good salaries and a favorable working environment.
Advantages of government
-
It
prepare good policies for economic development.
-
It
protect its people so as to be comfortable in production.
Financial institutions
Financial
institutions are organizations that process monetary transactions, including
business and private loans, customer deposits, and investments. Example of
financial institutions are: Banks and insurance companies.
Role of financial institutions in economic development
1.
They
provide loans
Financial institutions provide loans to the public.
Loans provided help in starting business and other production activities.
2.
They
create employment opportunities
Many people are employed in financial institutions.
For example, Many Tanzanians are employed at: CRDB, NMB and NBC bank.
3.
They
give business education
Financial institutions educate their customers. For
example, before they give loans their clients, they educate them.
4.
They
participate in other development project
They participate in building settlement and
commercial house like what can be observed from NSSF, LAPLF, and NIC.
5.
They
provide material support to special group
Provision of material support, reduce special groups
problems. They assist orphans, people living with HIV/AIDS, disabled and many
others.
6.
They
maintain the value of money
Maintaining value of money is done by the Central
Bank (BOT) by checking inflation which is dangerous to businessmen and women
who operate on loans.
The Role of Government in Economic Development
1. It
help farmers
Government
help farmers by providing: pesticides, fertilizers and equipment such as
sprayers, hoes and power tillers in rural areas. Also it encourages farmers to
join cooperative societies and gives them loans.
2. The
government encourages society to have a culture of saving and investing
The
culture of saving and investing is good because it contributes to economic
growth. People who do not save cannot invest because of lack of money.
3. It
provide social services
Different
social services like health, water, electricity, education, transport and
communication are provided by the government.
4. It
promote political stability
The
government is making sure there is peace in the country. Availability of peace
help people to conduct their activities calmly and bring about economic
development.
5. It
collect tax
Good
collection of tax, help national development because tax is used for different
projects which help economic development. For example, tax is used in
construction of roads, railways and buying medicines for our hospitals.
6. Making
good policies
Government
is making good policies for development. These policies include, reducing
taxes, increasing employment, creating a conducive environment for business and
encouraging entrepreneurs.
Areas where the government has been ineffective in economic development
Apart
from the mentioned effectiveness of the government in economic development,
there is some ineffectiveness too. Some of this ineffectiveness are:
1. Signing
weak contracts with investors
Some
of the contracts do not consider the national interests. For example, mining
contracts do not take into account the national interests.
2. Poor
tax collection
Because
of poor tax collection, the government loses a lot of money due to unnecessary
tax exemptions and tax avoidance.
3. Failure
to control inflation
For
example in Tanzania, products prices are increasing and cause fall in
purchasing value of money.
4. Poor
transport system
Poor
transport system affects the economic development of Tanzania. For instance,
traffic jams in cities is due to poor infrastructure and city planning.
5. Inefficiency
of power supply
Electricity
has become a major problem. Many areas do not have reliable electricity and
this creates a shortage of industries. Electricity has become a major problem.
Many areas do not have reliable electricity, and this creates a shortage of
industries. For example, in Kigoma, the region is not connected to the national
grid, that why there are no industries in the region.
6. Corruption
Leaders
are using for their own benefits the money that was supposed to go to
development. As a result, development, government should fight against
corruption.
7. Dependence
on foreign aid
Foreign
aid is depended to finance the budget of the nation, this affects the economic
development of the country especially where the aid is not given on time.
Private Sector
The
private sector is the part of the economy that is run by individuals and
companies for their own profit.
Components of the private sectors
There are two components of private sectors which
are: formal sector and informal sector.
Formal sectors are sector which encompasses all jobs with normal
hours and regular wages, and are recognized as income sources and they pay tax.
Examples of formal sectors are: private schools, private hospital, passenger’s
busses and shops.
Informal sectors are sectors which encompasses all jobs which are
not recognized as normal income sources, and on which taxes are not paid.
Examples of informal sector are: machinga, tuition centers and street food
sellers.
Importance of the informal sector in economic development
1. Provides
jobs
Informal
sector provides job which reduce the unemployment problem. Many people have
employed themselves through informal sector.
2. Generates
income
People
who participate in informal sector, get income. This income help them to
fulfill their daily basic needs.
3. Helps
to alleviate poverty
The
informal sector reduces poverty because people get work and income which help
them to have their basic needs.
4. Influence
entrepreneurial activity
The
informal sector encourages people to get involved in a variety of entrepreneurial
activities. Through these activities, people earn a living.
5.
Helps to bring commodities to the customer’s doors
Some
customers stay away from the city, this help them to get commodities at their
doors. For example, many entrepreneurs sell vegetables by passing through
people's homes.
6. It
produce goods and services
For
example, small farmers cultivate and feed their communities. Also, bodaboda
drivers provide transportation services to the community.
Problems Facing the Informal Sector
Apart
from the mentioned importance of the informal sector in economic development,
there are some problems too. Some of those problems are:
1. Many jobs are low-paid and the job
security is poor.
2. There are no proper places set for
them to conduct their businesses.
3. Lack of transportation means. For
instance, “Machinga” guys walk long distances to sell their goods.
4. Some of the businesses do not address
the issue of hygiene.
5. Lack of enough capital which limits
the expansion of the businesses.
6. Lack of creativity among the members
due to low levels of education.
7. They are not recognized by the authorities and
therefore there is no freedom in doing their businesses.
Ways of Improving the Informal Sector
The
informal sector may be improved in several ways. Some of these include the
following:-
1. The government should recognize the
sectors by registering all the owners of these businesses.
2. Proper places should be located where
people can operate their activities comfortably.
3. People should be educated on how to
conduct their activities properly and the importance of cooperation and unity.
If they are united it will be easier for them to get loans from financial
institutions.
4. Health officers must visit these areas
to inspect and educate people on all issues relating to health.
Social services
Social services are the government services provided
for the benefit of the community.
Social services provided in Tanzania are: education,
water, electrity, transport and communication and health services.
Role of government in provision of social services
1. To make policies which support private
and non-governmental institutions in the provision of social services
2. To construct and maintain the
transportation system.
3. To distribute teaching and learning
materials to schools.
4. To distribute important facilities to
hospitals and other areas where health services are provided.
5. To educate Tanzanians on environmental
preservation so that water sources are not polluted.
6. To train the required personnel who
will assist in the provision of social services. Examples of such personnel are
teachers; water experts; railways; road and electrical engineers; doctors and
nurses.
Role of private sectors in provision of social services
1. Private sector provide water services
by drilling wells.
2. They provide transportation services
to the peole.
3. They provide health services through
building of hospitals, dispensaries, clinics etc.
4. They construct private schools,
colleges and univesitites.
5. They provide electricity especially in
village by selling solar powers and generators.
6. They help government in provision of
social services.
Challenges Facing the Provision of Social Services in Tanzania
1. Some of the government and private
institutions face financial problem which complicate the provision of high
quality social services.
2. People living in rural areas have the
worst living conditions. As a result, they migrate to urban areas where they
cause intensive scramble over the available social services.
3. Water supply is not sufficient in
rural and urban areas.
4. Transportation systems in the rural
areas are still a problem. People living in remotes areas do not have access to
transportation systems. Poor transport makes it difficult for people to go to
hospitals or farmers to transport their produce.
5. Bad behavior among individuals of destroying
public and private infrastructure. Some destroy the railways and cause
accidents. Others steal transformer oil and telephone cables.
6. Services are too expensive and the
citizens are unable to pay for the costs of the services rendered. For instance,
most of the private schools set high school fees which are not affordable to a
majority of Tanzanians.
Solutions for the challenges facing provision of social services in Tanzania
1. Improve living standard in rural areas
so as to avoid migration of people from village to town.
2. To increase access of water so as all
people can get clean and safe water.
3. Construction of better roads in rural
areas.
4. Reduces cost of services. For example,
electricity and water services are too expensive, so the government should reduce
its price so that many people can afford.
5. Making of strict laws against bad
people who destroy social services.
6. The government should find more money
to help provide social services.
Revision Questions
1. Answer the following questions by
choosing the most correct alternatives.
I.
Development
can be_______
A
at individual and national level. B found in the developed countries only. C
only for the personal level. D at the national level only. E at community level
only.
II.
Factors
of economic development include_______
A
land, labour and capital. B computer and banks. C banks and SACCOS. D
loan-giving institutions. E none of the above.
III.
The
following are the importance of SACCOS in economic development except________
A
providing loans for investments. B improving people’s living standards C
increasing the national income. D helping the people who are self-employed. E
organizing strikes and boycotts.
IV.
The
social security institutions found in Tanzania are_______
A
PPF, PSPF, LAPF, SACCOS, NSSF. B GEPF, LAPF, PPF, AICC, NSSF. C PPF, PSPF,
TUICO, NSSF, RAAWU. D PPF, PSPF, LAPF, GEPF, NSSF. E NSSF, TSSF, TASAFU, PSPF.
V.
________
are operating as communication companies in Tanzani.
A
Tigo, TTCL, Airtel, Zantel. B Sasatel, Airtel, FINCA, Vodacom. C Vodacom, NIDA,
IMF, Sasatel. D World bank, IMF, Vodacom, Airtel. E Zantel, Sasatel, NMB, TBC.
2.
Define
the following terms:
I.
Social
security
II.
Per
capita income
III.
Life
expectancy
IV.
Poverty
3.
Briefly
explain types of development.
4.
Explain
in short the indicators of economic development.
5.
Discuss
any four factors for economic development.
Other Civics Form Three Topics
2. Poverty
