
Almost all the basic concepts of development economics originate with Adam Smith. Development is essentially identified with increase in per capita real income an idea that has dominated economic thought for over 2 centuries. There are at least 5 underlying conditions in society that help to determine the rate at which development may occur: 1) a political and social condition that Smith describes as order and good government which involves the widespread legitimation and security of property. Another social consideration is the habit of subordination which enables hierarchy to develop and later organizations to form. 2) Improvement in transportation affects the extent of the market. 3) The increase in productivity in food production. 4) The demographic situation particularly in terms of what checks the increase in population and 5) the increase in stock or capital as reflected in both the quantity and value of physical assets. If any consensus emerges from the economic development literature it is that economics is not enough. The conditions that encourage or discourage development are often found in the political culture the educational culture the family culture and the communications culture.
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