Question

1)Using suitable examples discuss the theories of development

2) Discuss five issues of concern in kenya.

Answer 1

some Theories of development

schumpeterian theory  

joseph schumpeter presented his theory of economic growth in theory of economic development published in german in 1911.schumpeter assumes a perfectly competative economy which is in stationery equlilibrium . In such a state there is perfect competition equilibrium-no profit, no interest , no savings, no investment and no involuntary employment.economic repetative activities are timeless economy .Development consist in the carrying of new combination in the form of innovation .Innovation includes- introduction of new product, the opening of new market , new source of supply of raw materials. The economic development in United state during the period 1963-2010 is a schumpeterian model development.

2:   Marxian growth theory

  The marxian analysis is the gravest and most penetrating examination of the process of capitalist development.This theory is not applicable to under developed countries .Marx contributed to the theory of economic development in three aspect namely in broad respect of providing an economic interpretation of history in the narrower respect of specifying the motivator forces of capitalist development and in a final respect of suggesting and alternative path of economic development.He uses the concept of surplus value and capital accumulation. surplus value is a economic basis of class struggle under capitalism capital accumulation on the other hand, is the surplus labor that lead to capital accumulation. The capitalist main motive is to increase the surplus value which goes to swell the profit. Russian rural development is a marxist model

3: Malthusian theory

  Thomas Robert Malthusian did not regard the process of economic development as automatic .He concerned with the "progess of wealth". It refers to economic development which would increase the wealth of country. The wealth of country depends partly upon the quantity of produce obtained by its labour and partly upon the valuation of the produce. In asia and African countries this theory has proved true as population along increased and increase in wealth is lowest.

4.Adam smith theory

   The smith theory of economic development has limited validity to under developed countries. In such a economies the size of market is small. The size of market determined the volume of production. He explained his theory by using the concept of natural law . He advocated the policy of leissez faire.He also emphasized the capital accumulation and division of labour that increased the productivity.

b)Issues of concern in kenya are the following  

1. economic issues in kenya include unemployment , lack of skilled manpower, flight of capital and foreign dominated economy

2 corruption in kenya is wild spread and process a risk for companies particularly at the market entry and business startup

3. poor infrastructure in kenya has affected productivity and growth

4.Education and health care needs to be improved

5. Food shortage :About 9.8 million keniyans cannot afford enough food to meet their daily needs.