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Economic Development Analysis

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Economic development refers to the prolonged, cooperative actions of communities and policy makers that enhance the economic health and people’s living standards of an area. Therefore, policies are extremely significant in determine the economic development of a country or an area in a country. In the article “Rural India (2008)”, Peter Wonacott has evidenced the policies that have helped economic development of India’s rural area, especially Bihar.

According to the author, development spending by state and national policy makers explains the positive economic development in rural India. Able leaders have replaced those leaders, who have contributed to the economic decline of rural India. Such able leaders have invested in infrastructure, health, and education. This has served as a firm base for the establishment of industries and consumer markets, as well as led to upward mobility. Among the evidences regarding this policy, is that the consumer spending of rural Indians grew at a faster rate than that of Indian city dwellers. Introduction of tariff barriers serves as another significant policy that lead to a positive economic development of rural India. According Wonacott, large rural populations can experience an encouragement to growth due to tariff barriers. Creation of an open government is another policy that has improved the economy of rural India. This has led to strong harvests and development of projects, which have helped ameliorate the economy of Bihar at a rate of about 5.5 percent.

Other ways that can develop the rural India economically may include rural electrification, loaning owners of small businesses, and advising people on how to identify and explore various opportunities. These will enable individuals to start making income, which will allow them live meaningful lives. Parents will be able to cater for the educational needs of their children. Education has been the key to success because it will help people realize their talents, as well as discover and explore untapped resources around them.

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