Economic development

Definition

Economic development refers to the process of improving the economic well-being and quality of life for a community or nation, often through industrialization, infrastructure improvements, and increased access to education and healthcare. During the period from 1750 to 1900, economic development was marked by significant changes such as the rise of capitalism, expansion of global trade networks, and advancements in technology, which transformed economies worldwide.

5 Must Know Facts For Your Next Test

1. The Industrial Revolution, beginning in the late 18th century, was a major catalyst for economic development as it led to increased production capabilities and urbanization.
2. New technologies, such as the steam engine and mechanized textile manufacturing, played a crucial role in driving economic growth and enhancing productivity.
3. Global trade networks expanded dramatically during this period, facilitating the exchange of goods, resources, and ideas between nations and continents.
4. The rise of capitalism during the 19th century shifted economic power dynamics, with emphasis on free markets and individual entrepreneurship becoming central to economic development.
5. Social changes accompanied economic development, including shifts in labor patterns, population growth in urban areas, and evolving social classes as a result of industrialization.

Review Questions

• How did industrialization impact economic development during the period from 1750 to 1900?
  • Industrialization significantly accelerated economic development by transforming economies from agrarian-based systems to industrial powerhouses. This shift led to the establishment of factories that increased production efficiency and created job opportunities in urban areas. The influx of workers into cities resulted in urbanization, which further spurred demand for goods and services, fostering an environment ripe for economic growth.
• Analyze the relationship between capitalism and economic development during this period.
  • Capitalism played a crucial role in shaping economic development from 1750 to 1900 by promoting free markets and competition. This system encouraged innovation and investment, leading to advancements in technology and infrastructure. As entrepreneurs sought profits, they fueled economic expansion by creating new industries and increasing production capacities. The rise of capitalism also contributed to wealth disparities, influencing social structures as different classes emerged based on economic success.
• Evaluate how globalization affected economic development during the late 18th and 19th centuries.
  • Globalization profoundly influenced economic development by integrating national economies into a more interconnected world. The expansion of trade routes allowed countries to access new markets and resources, enhancing their economic prospects. As nations engaged in global commerce, they not only exchanged goods but also ideas and technologies that facilitated further advancements. However, this interconnectedness also led to challenges like competition for resources and rising tensions among emerging powers seeking dominance in the global market.

Related terms

Industrialization:

The transition from agrarian economies to industrial ones, characterized by the growth of factories, mass production, and the shift of labor from agriculture to manufacturing.

Capitalism:

An economic system based on private ownership of the means of production and their operation for profit, which gained prominence during the 18th and 19th centuries.

Globalization:

The process by which businesses or other organizations develop international influence or start operating on an international scale, significantly impacting economic relationships between nations.