Economic Development or growth is a subject which, until recently, has received only scant attention from economic science. Such a lack interest is remarkable in view of the fact that the increase of the flow of goods and services was the goal of the economic policity formulated by the earliest systematic students of economics. Mercantilism, for example, aimed at an expansion of the national economy for the greater glory of ruler and state. but both practice and theory were worked out within the framework of a static madieval concept of the economic resources of the world. adam smith rejected the idea that economic resources were limited, and foresaw a continuously increasing prosperity for the world as a whole, as a result of the introduction of technological changes.
These changes were both cause of, and condition for, an ever more productive division of labour. "it is the multiplication of the productions of all the different arts, in consequence of the division of labour, which occasions, in a well governed society, universal opulence which extends itself to the lowest rank of the people.
The classical economicts who followed smith, particularly Ricardo, took a very pessimistic view, since they believed that production was limited by physical restraints (the'niggardliness of nature') , and that the close correlation between real wages and population trends would always tent to reduce wages to the subsistence level. later economists, however, generally accepted the idea of ever increasing national and international prosperity as the product in innovations, progressive division of labour, capital formation, increasing productivity, and growth of population.
Adapted from : English for spesific purpose E.S.P BOOK ONE (H.Atje Karnaen, Drs)
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