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Directing Development

Definition of Economic Development in the Britannica Online Encyclopedia can be resumed as a process where low-income national economies are transformed into modern industrial economies through a change in a country’s economy involving qualitative as well as quantitative improvements. This issue is always a central issue in every underdeveloped nation. Almost all government related issues, lets say politics, defense, security, are usually in any way connected to it. Reasons are clear; economic problems are the burden peoples face every day. The study in this field is enormous. It is usual that material portion of government spending is spent in this field. The problem is that some time these attention and effort consuming activity results failure to most, or at least leaves an uncovered space in the society, that is wide welfare gap. Although some time the economy grows, but social condition becomes unstable. Reason behind it is that sometimes economic development focus too much to the quantitative measurement of economic growth while the wide range economic welfare ignored.

Economic welfare in nation wide stage is intangible, but it is the issue of every days matter. The concern of citizen is not how many digits are the economic growth, but how they fulfill their needs. Although the economy grows significantly, but if the growth is acquired by the few minority, social stability, satisfaction of the people to development will be minimum. In this condition, development can be considered a failure. Thus, government should focus the development to people's welfare to achieve economic growth.

People's welfare is closely related to grass-root's economic activity. So, each of governments programs should always related to developing economic's activity. The programs can be split into sectors and area. Among those sectors, trade sectors is on of the most prominently able to promote economic passion in the community. Programs that affects business sector can be as government's spending, government's income, and regulation that do not directly connected to income. Programs that related to spending, for example, are spending on infrastructure development, road development, state company development, energy subsidy, etc. One that related to income may appears as tax, tax regulation, tariffs, excise, etc. The third, policies that do not related directly to income and spending are non tariffs trade regulation such as quota, area of activity, import and export requirements, etc. Synergy of these three fields is the key to prudent and optimal economic policy.

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