1. World Economic Development: Measurement and Problems

Case Study 1: Global Economic Slowdown and Inflation Trends

Principles of Economic Development:

• Growth and Development Theory (Rostow, 1960) – Stages of economic growth.
• Dependency Theory (Frank, 1967) – Structural inequalities in global trade.
• Sustainable Development and Equity (UNDP, 1990–Present) – Balancing economic growth with social inclusion.

Theorists Behind the Principles:

• Walt Rostow (1960) – Economic growth stages.
• Andre Gunder Frank (1967) – Dependency theory and global inequalities.
• Mahbub ul Haq (1990) – Human development and economic measurement.

Models/Theories/Laws:

• GDP Growth Model – Measurement of economic expansion.
• Inflation and Purchasing Power Model – Impact of price fluctuations on development.
• Systems Analysis Approach – Evaluating economic trends through multiple indicators.

Recent Data:

• Global GDP Growth: Deceleration from 2.7% in 2023 to 2.4% in 2024.
• Inflation Trends: Global inflation projected to decline to 3.9% in 2024, but food inflation remains critical.
• Regional Disparities: Developing economies struggling with high debt and investment shortfalls.

Spatial Variation:

• Developed Nations: Moderate economic growth with stable inflation.
• Developing Economies: Slower recovery due to financial constraints.

Temporal Variation:

• Historical Trends: Economic fluctuations observed since 2008 financial crisis.
• Future Projections: Expected policy shifts to stabilize inflation and growth.

Source:

• World Economic Situation and Prospects Report 2024

Insight:

Global economic slowdown validates development models, emphasizing the need for policy interventions to stabilize growth.

Case Study 2: Economic Inequality and Sustainable Development Challenges

Principles of Economic Development:

• Growth and Development Theory (Rostow, 1960) – Stages of economic growth.
• Dependency Theory (Frank, 1967) – Structural inequalities in global trade.
• Sustainable Development and Equity (UNDP, 1990–Present) – Balancing economic growth with social inclusion.

Theorists Behind the Principles:

• Walt Rostow (1960) – Economic growth stages.
• Andre Gunder Frank (1967) – Dependency theory and global inequalities.
• Mahbub ul Haq (1990) – Human development and economic measurement.

Models/Theories/Laws:

• Human Development Index (HDI) Model – Measurement of health, education, and income.
• Inequality-Adjusted HDI (IHDI) Model – Accounting for disparities in human development.
• Systems Analysis Approach – Evaluating development trends through multiple indicators.

Recent Data:

• Global Economic Inequality: Least developed countries projected to grow by 5.0% in 2024, below the 7.0% SDG target.
• Debt and Fiscal Constraints: High debt levels limiting economic expansion in vulnerable nations.
• Climate and Trade Challenges: Extreme weather events and geopolitical tensions affecting economic stability.

Spatial Variation:

• Developed Nations: Higher economic resilience due to diversified industries.
• Least Developed Countries: Struggling with financial constraints and slow recovery.

Temporal Variation:

• Historical Trends: Economic inequality widening since COVID-19 pandemic.
• Future Projections: Expected policy shifts to address global disparities.

Source:

• World Economic Situation and Prospects 2024

Insight:

Economic inequality validates development models, emphasizing the need for international cooperation in sustainable growth.