CBM 122 G3

Dialectic

Dialectic

derived from Greek word dialego which means to discuss or debate. Also known as Dialectical Method which involves discussion between various points of view that seeks truth by logical argumentation.

Dialectical Thinking

defined as seeing things from multiple perspectives.

Fundamental principle of dialectical thinking

everything is composed of opposites and that to understand things more fully, we need to understand their opposites.

Social Development

is all about enhancing the well being of the people in an economy, revolves around the progress or improvement of the economy, improving the quality of life of the people.

Socrates

the first exponent of the dialectic method. He believed that one can arrive at the truth only by constant questioning. So dialectics was the process of exposing contradictions by discussion so as ultimately to arrive at truth.

Georg Wilhelm Friedrich Hegel

German philosopher and borrowed dialectic method from Socrates for his political philosophy

Hegel's Major Idea: Solving Contradiction

Aimed to reconcile contradictory positions and theorems. • Used past traits as interpretation method. • Hegel argued that absolute idea or the spirit, in search of self realization moves from being to non being to becoming

Thesis

Initial state or idea.

Antithesis

Synthesis

Resolution of conflict, leading to progress

ROSTOW’S MODEL

by Walt Whitman Rostow. He argued in his model that the transition into development occurs in a series of stages. These stages followed a logical sequence; each stage could only be reached through the completion of the previous stage

Traditional Society

No access to science and technology. • Most of its resources are dedicated to agricultural resources. • People heavily rely on manual labor and self

Preparatory Stage

Agricultural produce to manufactured goods. • Trade expands overseas creating an international market • Preparation for take off

Take

off Stage

Drive to Maturity Stage

Overall income per capita increases • Steadily growing economy and modern technology • The rate of savings and investments is such that it can automatically sustain economic growth.

Mass Consumption Stage

Country’s demand shifts from food, clothing and other basic needs to demand for luxuries. • High valued goods become normalized to purchase • People live in cities creating an urban society

HARROD

DOMAR MODEL

Savings Rate (S)

Proportion of national income saved and invested.

Capital

Output Ratio (v)

Growth Rate (G)

Rate at which an economy grows, determined by the savings rate and the capital

Growth Equation

G = S / v

Implications of harrod domar model

Investment

Criticisms of harrod domar model

Assumptions: Simplistic assumptions of fixed capital