[Essay] Relationship between GDP and Educated Persons

Introduction

Every nations and country has their own strategy on how to improve and enhance their economic status. In each country, economic growth and development and also the standard of living of the citizens are very important because these are where the survival of the country lies. The progress of the economy depends on the abundant resources or source of natural products and those people who are running it or manipulating it. These factors should work hand in hand in order to determine the weakness and strength of each so that it will immediately fix if there are any loop hole in the transactions. Basically, when judging whether the economy is doing well or poorly, it is normal to glance at the total income that everyone in the economy is earning. For an economy as a whole, income must equal expenditure because every transaction has a buyer and a seller and every dollar of spending by some buyer is a dollar of income for some seller. From this, countries are making calculations of their progress with the use of measures. Actually, the so-called real gross domestic product (GDP) is a macroeconomic measure of the size of an economy adjusted for inflation and price changes (Cobb, Halstead, & Rowe, 1995). It measures in constant prices the output of final services and goods and incomes within a country’s economy. In this paper, the relationship between GDP and educated persons in countries in accordance to economic development and growth was discussed.

Discussions

Economic growth is merely an increase in the given amount of goods and services produced by the country in a given year as compared to the previous year. It occurs when a society acquires new resources or when it learns to produce more using the existing resources. However, we need to consider that the economic has its pros and cons. The supporter of economic growth believes that growth is equated with progress because it would provide wider range of choices to the customers, consequently it improves the quality of life as well as the condition of less fortunate. On the other side of the scale, forerunner of anti-growth believes that growth only accounts things existing in the market, and that the essential barometer of improved quality of life is wanting, in fact it even deteriorates as it is being taken for granted. Second, as growth propels, new tastes and preferences for goods are created. Hence, the consumers become the followers of this created want which is contrary to our perceived assumptions that consumers are sovereign and that they are the dictators in the market. If growth increases at a rate higher than our improvement in natural resources-the world can no longer suffice this growth because limited resources can no longer be utilised. Lastly, growth leads to unequal distribution of income.

After considering the pros and cons of economic growth in accordance to country’s standard of living, it is now time to know how this is measured. So how can we measure development? Basically, the most popular way of measuring it is thru the use of Real GDP (Petrovich, 1994). Actually, we have three ways of computing it as Petrovich, 1994 stressed out: the industrial-original approach, expenditure approach and income approach. Let say hypothetically that in 2007 our real GDP was 969,334 in million dollars as compared to the real GDP in 2008 in of 1,012,614 in million dollar, we can say that there is an improvement in the production of goods and services in 2008 so we are better-off than last year. Moreover, unemployment rate could also be used as a measure of economic growth (Schwab, 1997). As we reach a single digit unemployment rate then we can say our economy is growing. But as we recognised that some temporarily unemployed people are accounted, this would be a subjective measure of economic development.

For so many years, the GDP with respect to its real GDP has been considered as the nation's foremost indicator of economic progress (Schwab, 1997). It is now widely used by economists, policymakers, international agencies and the media as the main scorecard of a nation's well-being and economic health.

The GDP is related to the educated persons. This refers to the need for a quality labour stock of knowledge and skill and increase in productivity (Alvarez & Busenitz 2001). The human resource with educated person is still the key to the success of any development and growth endeavour. Factor of production (e.g. land, labour, capital, etc.) becomes useful and productive if they are properly utilised by the people. If they are creative, socially oriented, and have the sense of ingenuity, they could enormously help their fellowmen and country. This is the Achilles’ heel of the Third World Countries-their attitudes, values and institutions do not favour development (Alvarez & Busenitz 2001). Attitudes such as tardiness, individualism, resistance to change, lack of self-reliance, to have a few hinder economic growth and development. Likewise, values life colonial mentality, fatalism nepotism and extravagance exacerbates underdevelopment.

The existence of educated persons affects and contributes to the development of Social Overhead Capital which is also known as infrastructure. Development and growth in a certain nation depends on huge infrastructural investment such as roads, power generation and irrigation in which in fact cannot be provided by single firm or household due to gigantic capital needed (Haggard & Webb 1990). Furthermore, Haggard and Webb 1990 pointed out that these investments are prone to externalities. Consider this, if a farm to market road was constructed, you cannot prohibit other farmers nor travellers to pass that road and say, “hey its my road, try the other one” hence, everybody benefits from infrastructure. Furthermore, it is next to impossibility to collect fees from the social benefits being offered by these investments. If let say, lighting was offered to the public, some people who pays for it don’t get less if some people not willing to pay use the same facilities. Thus, neither private firm nor household would be enticed to provide for this infrastructure, hence, the intermediaries and provision of the government are needed in order to ensure that the infrastructure are being planned if not currently done to propel development.

Conclusions

Therefore, standard of living with respect to growth and development refers to the economic state where the demands placed upon the environment by people and commerce can be met without reducing the capacity of the environment to provide for future generations; is economic development that has a positive long-term social and/or environmental benefit; and meets the needs of the present without compromising the ability of future generations to meet their own needs.

There are several interpretations of development and growth ranging from “pure ecologist” demanding minimisation of human influence on nature to “4D interpretation”, in which development includes ecological, economic, social and cultural dimensions. Aside from these, issues concerning the real GDP, Human Development Index or the so-called HDI and poverty issues in an economy must be considered to determine the range and engines of growth and development.

Moreover, development and growth is an economic, social, and ecological concept. It is intended to be a means of configuring civilisation and human activity so that society and its members are able to meet their needs and express their greatest potential in the present, while preserving biodiversity and natural ecosystems, and planning and acting for the ability to maintain these ideals indefinitely. Thus, development affects every level of organisation, from the local neighbourhood to the entire globe.

References:

Alvarez SA & LW Busenitz (2001) "The entrepreneurship of resource-based theory." Journal of Management 27, no. 6: 755-775.

Cobb, C., Halstead, T., & Rowe. J. (1995) "If the GDP is up, why is America down?" The Atlantic Monthly, vol. 276, no. 4, October 1995, pages 59–78.

Haggard, S & Webb SB (1990) What Do We Know about the Political Economy of Economic Reform? The World Bank Research Observer, 8, 143-168.

Petrovich, NL 1994. Introduction to Sustainable Development. Counties: Foundation for a Sustainable Future. Washington D.C.: National Association of Counties.

Schwab, AK & DJ Brower (1997) Sustainable Development: Implementation at the Local Level. Land Use Law & Zoning Digest (April): 3-7.

Case-Based Essay

Paul, a 5 year-old rescued street child was admitted in the charity ward of the hospital you are working to. He is suffering from severe malnutrition and some wounds in his legs and arms are left untreated. Upon attending to the patient, you learned that he is from the nearby city with no parents alive. His relatives are not interested of taking care of him. Immediately, you asked his name. As a five year-old kid, he is somewhat shy to answer several of your questions. But to the vital information that you need are given by his short, soft and hesitant responses.

After the preliminary recording of personal data and whereabouts, you immediately order a colleague to check on the medical files of the child in the hospital records shelves or in the nearby hospitals whom he is possibly admitted before. The colleague found out that Paul was born in your hospital as Paul Del Mar on March 18, 2000. According to the facts listed on the records, his mother passed away upon giving birth. He belongs to a poor family when his parents are still living.

1. Physical milestones

- As a street kid, Paul is too skinny and short. He definitely falls below the average weight and height of a normal five years old child. For some normal kids of his age, they are expected to be active and curious. They are generally playful and full of energy. It is believed that the first five years of a child is the most crucial and considered the formative years (‘How to Raise a Healthy Child’). In the same article, a healthy child is in a perfect state not only in body but in mind. A child learns how to play independently, dress and undress (Craig, Kermis & Digdon 2001), talk, run, stand on one leg even as early as the age of 3 (Jeannerod 1990). In relation to height and weight, a 5 year old child has the average of 109.0 cm and 18.2 kg. With the case of Paul, he is under the average height and weigh acceptable to his age.

2. Gross motor skills

“Gross motor skills are larger movements involving the arm, leg, or feet muscles or the entire body — things like crawling, running, and jumping are gross motor skills” (Hames 2005).

- Paul is not as active as a normal five years old child. He can run but easily gets exhausted. When tired, he barely moves his arms and limbs due to his malnourished condition. Accordingly, he just sits on street or park benches and waits for alms from by-passers. During meals, he often eats leftovers from rubbish.

3. Fine motor skills

According to Hames (2005), “Fine motor skills are those smaller actions like picking things up between the thumb and finger or using the toes to wriggle into sand or the lips and tongue to taste and feel objects.”

- Though Paul is physically weak, he is still capable of thinking and speaking in his age. He can comprehend to questions from the people who interview him. He can move his hands in coordination with his eyes. He has a develop senses.

4. Language

Language as well as motor development is now at a level to give expression to imagination at the age of 4 to 5 (Ramsden 1999).

- Basing it to his age, Paul can speak well. However, he is shy and hesitant. He can pronounce works as a normal kid of his age but his soft shy voice is the only problem.

5. Social development for the particular age group

Paul is shy. Hence, he lacks self-confidence and self-esteem. His emotional health is poor. He is aloof to people and seems worried. Since he is a street child and no relatives taking care of him, his sense of security is low. This makes him troubled and uncomfortable. Referral may be the action of choice when a health professional believes that a patient has a personal problem and needs counseling. When the problem appears to be primarily related to something beyond the current treatment situation, or when it seems to be complex, the health professional may feel inadequate to deal with it (Ramsden 1999).

Nursing Suggestions

In developing gross motor skills, consider the long-term implications for development for its control, as well as fine motor coordination and eye-hand coordination basing it from the data taken in the environment of the patient.

Most importantly, healthy food should be given to Paul to make him as fit as a normal 5 years old kid. His wounds should be treated to alleviate the risk of infection. Exercise, sleep, and proper care and attention must be given to him. Further, as a street child, the responsibility of the nurses and/or doctors is to look for an institution that will cater to the needs of the child.

In social development, “Emotional relations established very early in life set the pattern of relations in later life” (‘How to Raise a Healthy Child’). Paul must develop his emotional health because it is the basis of the child's development of a sense of security, confidence and the ability to cope well with other people and with the world at large.

Meanwhile, it is vital to bear in mind that progression through the stages is a function of chronologic age, physical and emotional maturation, and the social environment. Different cultural contexts place different demands and expectations on individuals. Those presented here reflect a post-industrial society, and would not necessarily apply to a tribal society or that of a developing country. Thus, change occurs in the individual in several different areas simultaneously at each psychosocial stage throughout life.

References

Craig, G, Kermis, M & Digdon, N 2001 Children today, 2nd Ed. Prentice Hall,

Toronto, p. 8.

Hames, P 2005 What’s the difference between fine motor and gross motor skills?

Retrieved February 24, 2006 from http://www.babycentre.co.uk/expert/6562.html.

‘How to Raise a Healthy Child’, Health Library.com. Retrieved February 24,

2006 from http://www.healthlibrary.com/reading/ncure/healthychild/growth.html.

Jeannerod, M ed. 1990, Motor Representation and Control, Lawrence Erlbaum

Associates, Hillsdale, NJ, p. 755.

Ramsden, E 1999, the Person as Patient: Psychosocial Perspectives for the

Health Care Professional, W. B. Saunders Co., Ltd., London, pp. 14-15.