Chapter 1: Introduction: The Theoretical Framework

Economic development can be perceived as a multidimensional process that involves the reorganisation and reorientation of the whole economy as well as the social system, and it is much more than just the increase in income and output. Throughout this process of accelerating economic growth, it is vital to include the ones who have benefitted the least from economic development (Todaro & Smith, 2003). Economic growth is the progression of a community, along with the evolution of new and better methods of production and the rising of the level of output through the development of human skills and energy, better organisation, and acquisition of capital resources (Singh, 1966). There are three main categories of capital resources comprising physical capital, human capital, and technology, which determine long-run differences in income per capita.