Approaches to Economic Development - Literature review Example

REACTION PAPER Reading1: Summary According to Blair,John,P., and Reese,Laura,A., Customization And Macroeconomic Efficiency. Approaches to Economic Development: Reading from Economic Development Quarterly. (Thousand Oaks, CA: Sage publications. 1999).307-3011,1 different regions have diversified needs and exhibit various differences. It is the role of economic developers to pursue approaches that will best suit the situation they are in. These approaches should be geared towards the advancement of their regions. The developers should avoid imitating what other nations or regions are doing because such a move may result into terrible loss of both time and other resources. For example, in United States, many regions have engaged in developing stadium and other sport facilities even where there are no potential players. This may have been due to influence from other states where there is high demand for sport facilities.2 After all, different regions are endowed with different possessions and therefore, no need for coping what others are doing without evidence that it is going to apply in our case. Regional leaders should therefore carry out thorough assessment to establish which strategies are at their disposal to utilize in a given situation3. What matters is the end goal, which is to improve efficiency of generating revenue, provide employment opportunities, and improving general conditions of the people who live in a particular region. Take away 1. Different resource endowment across locations or nations may pose challenges when determining the quality of human lives in different regions. The fact is that people have diversified needs and solutions cannot be similar.4 However, even for the people living in the same location, their desires are still varied and require different means to solve them. 2. There is also a challenge regarding the criteria used by economist when determining the qualities of lives of different people.5 Since people use different means to satisfy their diversified needs, the criteria used to determine the level of economic advancement may vary across nations or regions. There are flaws when making comparisons using different items. Reading2: Summary According to Douglas, Waltson, J., &John,Moris, C.,Competition, Coordination, Or “Cooperation?” (In Building the Local Economy: Cases in Economic Development: Carl Vinson Institute of Government, and The University of Georgia. 2008, P.1-5, the techniques used by different regions or states working to promote economic development is similar.6 The major contributors of economic progress are things such as expansion of industries and other small scale businesses. There importance is specifically depicted through creation of job opportunities, mass production of goods improvement of infrastructures. At times, regions compete with one another because high level of economic advancement is an indicator of quality of human lives.7 However, smaller regions can merge their efforts to achieve a higher level of prosperity than other bigger regions. It is uncommon for different regions to merge their effort for common advancement of their economies. Collaboration for the sake of nation building may result due to a potential threat of collapse of a specific project. The main players in economic prosperity include private developers, local authority and the business people.8 Due to their common interest, sometimes they combine their effort in order to achieve a higher level of prosperity in their locality. Desire for prosperity of the economy has attracted local authority to ventures into business to provide goods and services, while they create revenue for their own operations. Economic prosperity attracts a lot of attention from politicians and other economic players in a given region. This is because; a successful leader is development oriented and always utilizes development records as their stepping stones to reach a higher goal. Also, the number of people employed and general improvement in t he general conditions of the lives of people determine the level of their resource endowment across r their advancement. Take Away 1. The activities of both private and local government are geared towards achievement of economic progress.9 However, the concern is why local government engages in business activities similar to those of local investors, whereas they are the ones responsible for providing other public goods for the interest general public. 2. Since local government is responsible for issuing trading licenses for local investors, I think it is unjust for them to engage in business activities in the same region with investors they are supposed to protect.10 This is likely to pose unfair competition to private traders’ thus undermining spirit of economic advancement. Reading3: Summary According to Sharp, Elaine,B., The meaning of economic development (In Urban Politics and Administration. Longman, 1990. P.2015-225, Economic development refers to promotion and maintenance of vigor of a regional or national wealth.11 This is measured in the light of set standards before perceived activities are initiated. Therefore, economic development basically results to increase in output in proportion to the residents of that particular region as well as advancement value addition to their lives.12 Economic development also takes into consideration the efficiency with which economic resources are being utilized or being generated. For example, the adoption of most current methods of production depicts economic improvement. Economic progress must ensure facilities to manage and sustain, and prevent unwarranted decline in progress so far achieved. A number of rules have been put in place to explain how certain town centers manage to grow better than others. For example, “classical location theory” bases the progress of urban centers in terms of the proximity to consumers, good infrastructures and so on.13 This results into lower prices for the benefit of the consumers and improved efficiency of market activities. It also means diversified workforce and availability of various commodities for the consumer. On the other hand, “Central place theory’ suggests that the growth of urban centers is initiated by availability of varying factors of production, large clientele and other support services such as improved infrastructures.14 Take away. 1. The idea of economic development brings about a question of whether it is possible at all for developers to engage in activities which are not valuable to the nation or a particular region. 2. It is also worth to learn that both private and public investors satisfy a very important goal of advancing the quality of human lives. Reading4: Summary According to John Portz. “Community definitions, and the local response” The Politics of Problem definition Shaping the policy Agenda. University Press of Kansas. 1999, 33- 49.15 This reading presents cases of different companies which were struggling to survive hence decided to stop their operations. The existence of any company is of great economic value to the surrounding community. When a company decides to end its operations either because of poor management or high labor cost this becomes an issue of public concern. Generally, people recognize company differently and attach different importance to it. Closing up business operations becomes a matter of public concern and especially among politicians. When a business is faced with challenges which are likely to make it run out of function, there is fear that people will lose their jobs and become a burden in the society.16 Similarly, the products and other benefits the local community were getting from that company are no longer available. People should think first of any possible way in which they can offer a solution and save the company so that it can continue with its operation.17 Closing down should be allowed to happen as the last option. This requires a thorough scrutiny of the challenges facing the company and assessment of possible means to save it. Take way. 1. The directors of the company blamed poor performance of the business on high cost of human labor. However, the most economic importance of the business activities is the job opportunities it creates for the people18. Therefore, it may have been unjustifiable for the company to stop its operations in the claim of high cost of labor. 2. Because different people who are affected by decisions taken by a company or any other economic activity have varying concerns in the company, then at what level should they justify its closure? This may be quite difficulty for the management to make such a decision due to public concern. Bibliography Blair,John,P., and Reese,Laura,A., Customization And Macroeconomic Efficiency. Approaches to Economic Development: Reading from Economic Development Quarterly. (Thousand Oaks, CA: Sage publications. 1999).307-3011 John Portz. “Community definitions, and the local response” The Politics of Problem definition Shaping the policy Agenda. University Press of Kansas. 1999, 33- 49 According to Sharp, Elaine,B., The meaning of economic development (In Urban Politics and Administration. Longman, 1990. P.2015-225 Douglas, Waltson, J., &John,Moris, C.,Competition, Coordination, Or “Cooperation?” (In Building the Local Economy: Cases in Economic Development: Carl Vinson Institute of Government, and the University of Georgia. 2008, P.1-5 Read More