The Process of Economic Change

Economic change requires comprehensive analysis of potential sources, independent and dependent variables, and possible shortcomings. Understanding without basis would be insufficient so there must a reliable framework to capitalise on. The chapter starts by enumerating three significant signs—namely, the macro and micro economic fundamentals, the current organisational approach, and the cultural tradition of a society—of sound economy that must be integrated in the theoretical and conceptual paradigm. After identifying the essential factors that determine successful and sustainable growth, the next question that the chapter addresses pertains to how to employ developmental strategies considering these indicators, and how some poor countries are not able to achieve an optimal point of national welfare even with the understanding of these forces.