Role of Economic Development in Reducing the Poverty Rate Essay

grapheme of Economic Development in Reducing the Poverty Rate - Essay ExampleThis paper presents super analysis of interrelations between frugal increment and poverty The essay is aimed at attempting to argue that economic emergence is a theme towards eradicating poverty. Factors that determine economic developing corroborate been examined, factors that cause poverty have been analyzed. through with(predicate) the GDP, savants are able to determine the living standard of people occupying specific parts of the world. Thus, any leading light increase in economic growth is seen as indicating an increase in standard of living to an amount level. It is worth noting that the average living standards are mostly achieved through greater inequality and poverty.Similarly, a fragment of scholars have argued that economic activities could solely not be attached to bringing to an end poverty across the world. In fact, numerous countries struggling with their economic activities such as oil, tea, precious stones among other natural resources have been continually exploited by foreign countries leaving them with very little benefits for their peopleHowever, economic development does not only cause poverty as it has been used by numerous countries to upgrade their economic life. This has been visual through the accessibility of facilities such as water, schools, medical facilities electricity among others.Nevertheless, it is worth noting that economic development does not only cause poverty as it has been used by numerous countries to upgrade their economic life. ... As such, pressing challenges attached to economic development must(prenominal) be dealt with to pave way for moderate poverty. Theoretical framework The Theory of Economic Development The theory of economic development emanates from a scholar known as Schumpeter. According to the theory, it was evident that his view on economic development was based just on two types of research that had been car ried push through by Scholars Walras and Marx. Although they were both dedicated towards coming up with solution based on the impact of economic development, they had varying reasons. Through Walras who was his great hero, this theory is said to hug the actual logic on the interdependence between quantities in the economy. On the other hand, Marx argues that thither must be vision based on economic evolution that acts as a pathway towards the generation of economic system (Rowe, 2009). In light of this, Schumpeter argues that both contributions have played a huge component part in giving the economic development a ground as one is rigid and the other is dynamic. As such, he argues that the dynamics in any economic entails data changing by carrying out new-made combinations of the five cases of economic development. The five cases in economic development consist of new products, new production methods, and opening of new methods, new organization forms and new supply sources. The development of this theory by Schumpeter has greatly contributed towards economic development for over a century. Although the theory focuses more on the limitations of tackling poverty, it could be argued that there are more possibilities towards economic development been a solution to poverty