Jumat, 02 Mei 2014

ECONOMIC DEVELOPMENT


THEORIES OF ECONOMIC DEVELOPMENT
    a)      FLOW CLASSICAL
Classical flow appears at the end of the 18th century and beginning of the 19th century industrial revolution in which the atmosphere of the days when it was the beginning for the development of the economy . At that time the system was rampant liberal and classical liberal economics according alairan was caused by a race between technological progress and population growth . At first the technology advances faster than population growth , but eventually the opposite happens and the economy will experience congestion .
According to this flow that the increasing rate of profit will encourage the development of investment and investment ( capital formation ) will increase the volume of capital stock (capital stock) . This will advance the state of the technology level and enlarge the number of items in circulation so that the wage rate rises, which means increasing the level of affluence of the population. The level of prosperity will encourage population growth , resulting in the enactment of the law of diminishing returns added ( law of diminishing returns ).
Opinion leaders classical flow theory, among others:
1.      Adam Smith
He claims that economic development is a need for specialization in order to increase labor productivity due to specialization will improve the skills of the workforce. In addition, he also focused on the extent of the market. The market will limit the narrow specialization (devition of labor) therefore should be as large as possible so that the market can accommodate the production that attracted the attention of international trade. Because of international trade relations adds to the breadth of the market, so the market consists of foreign markets and domestic markets.
2.      David Ricardo
Three groups of people according to David Ricardo in the economic community, among others:
a.    The capitalist class
Group that led the production and plays an important role because these groups are always looking for a profit and reinvest its earnings in the form of capital accumulation so that national income rises.
b.   Labour Group
Groups that are generally dependent on the capitalist class, and this class is the largest class in the society
c.    Golongan Tuan Tanah
Groups that received only the capitalist class over the lease of the land area leased. This class of landlords only rent them only think of a class of capital on an area of land that is rented out. David Ricardo said that if the increase of population and continuous capital accumulation occurs, then the soil becomes less fertile increasingly scarce in number or absence.
3.      Thomas Robert Malthus
According to Thomas Robert Malthus that population increase continues to be the elements that need to the additional demand , but the increase in the number of people without dibaringi with the progress of the factors or elements other development is certainly not going to raise revenue and will not increase demand . The fall in production costs will increase profits of the capitalists and encourage them to continue to produce .
According to Thomas Robert Malthus , economic development required an increase in the amount of capital for ongoing investment , in addition to the absence of economic growth can be expected when there are savings used for investments . Meanwhile, according to the law JBSay developing markets , where it is said that the Supply Creates its own demand , which means the origin of the production quantity increases then automatically the rising demand will also be sought as human needs are endless .
So in conclusion , that in addition to the savings as an incentive for economic development that is as a source of capital , can also be a barrier to the development of economic development because it can reduce the amount of effective demand .
    b)     THEORY OF KARL MARX
In theory, he divided the 5 stages of the development of society :
1.    Primitive communal society
This stage people are still using tools that are still simple and not owned by individuals but belong together (communal). In this society there is no surplus because the people make their own goods needs. but the longer, the piecemeal production tools know better. Improvements in the means of production led to social changes and then the division of labor in production.
2.    Slavery Society (slavery)
Production relationships between the people who own the means of production by the people who only work is the basis for the formation of slave society. With this way of working as the owner of the means of production gains will be even greater because the slaves were given very low wages but eventually the slaves are increasingly aware that a dispute between the two communities.
3.    Feudal Society
Due to the opposition formed feudal society where the nobility have the ultimate means of production, namely land.
Feudal relations of production and the system will change the way social life, so there are two classes of feudal class is a class that consists of more powerful landlords in the social relations and the working class.
The interests of these two classes differ. Feudal classes over just thinking about profit and then set up factories. The working class which has the means of production requires a free labor market and the abolishment of tariffs and other barriers to trade created by the feudal lords.
4.    Community Capital
Relations of production in a capitalist system based on individual ownership, each capitalist the means of production. This relationship enables the production of very rapid development because of the means of production would be a great advantage.
Capitalist class and labor have conflicting interests so that the difference is more and more interest into the class struggle that eventually arise to form a new society where there is social ownership of the means of production. It is an important element in capitalist society.
5.    Socialist Society
In this society based on ownership of the means of production social property rights (social ownership).
Production relations is cooperation and mutual support among elements of the exploitation of free labor in socialist society is that there are no more classes of society.

     c)      FLOW NEO CLASSICAL
Flow rate neo classic study, which connects the capital price at current value and future. Talks on interest tigkat finally got the problem of accumulation of capital. In this field the neo classical theories have contributed much to the development of the opinion.

     d)     TEORI SCHUMPETER
Schumpeter's theory of development focuses on Entrepenaur who led economic development, along enactment kapitalis.Sedangkan Entrepenaurship are people who can see an opportunity to introduce new techniques, new production, new and better organization so as to memperkenalan development of "new resources".
To make innovation and discovery has great influence in the economic development of the people who have the skills necessary to develop the economic aspect (the one called "Innovating create Entrepenaur")

     e)      ANALYSIS OF POST-Keynesian
The experts in post-Keynesian are those who are trying to formulate a theory keynes expansion. Theory keynes was limited to short-term analysis. For analysis keynes mennggunakan assumptions based on the state of the current time. For example, the level of engineering, labor, taste, analyzed with no regard to the long-term situation. While the analysis of post-keynes attention to the long-term situation.

CONCLUSION
Based on the ideas in his theories ekomon then can dikemukakansebagai follows. Classical: Adam Smith pointed out the importance of factors Divition of labor (division of labor or specialization) in economic development. D. Ricardo, shows the importance of factors tanah.Thomas Robert Malthus showed the importance of population growth factor, and influence to increase the number of requests. While Karl Marx, demonstrating the importance of the existence of available surplus value (surplus value) for economic development. Post Keynesia, especially Roy Harrod and Domar Evsey noted the importance of the role of capital in which investment is more important to economic development, while Neo Classical look at the role of technology. Schumpeter, the problem of economic development is the importance of the entrepreneur. If the entrepreneur is widely available, the economic development will be achieved rapidly.

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