TOPIC 1: INTRO TO ECO. DEVELOPMENT - Coggle Diagram
TOPIC 1: INTRO TO ECO. DEVELOPMENT
strategic geography sea-lane position brought trade and foreign influencesthat fundamentally influenced its history.
Portuguese were the first European colonial powersto establish themselves in Malaysia, capturing Malaccain 1511, followed by the Dutch.
The Anglo-Dutch Treaty of 1824 defined the boundariesbetween British Malaya and the Netherlands East Indies (which became Indonesia). A fourth phase of foreign influence was immigration of Chinese and Indianworkers to meet the needs of the colonial economycreated by the British in the Malay Peninsula and Borneo.
Japanese invasion during World War II ended British
domination in Malaysia
A tough militaryresponse was needed to end the insurgency and bring about the establishment of an independent, multi-racialFederation of Malaya in 1957.
WHAT IS ECONOMIC GROWTH?
Sources of Economic Growth
High rate of social, polical and ideological
Factor production (natural resource)
per capita grossdomestic product
(GDP) or other measures of aggregate income, typically reported as the a
nnual rate of change in real GDP
WHAT IS ECONOMIC DEVELOPMENT
Source of Economic Development
Education and knowledgeable skill
the increase in the standard of living of a nation's population
sustained growth from a simple, low-income economy to a modern, high-income economy.
of Contributing to
Development of Malaysia..
1. Labor force:
Its labor force is not only large for its population but young and educated. Much of its skilled managerial labor force was trained in countries such as the US, UK and Japan. The effect is productivity will increase
2. Techno transfer:
The introduction of latest technology can bring country faster development.
Usually, a developed country has a big capital such as capital in human, land, resource and income.
4. Natural resource:
The availability of natural resource such as palm oil, timber, petroleum and natural gas. Natural resource can promote economic growth
The increasing educational institutions and increasing educational system in Malaysia can produce more workers in higher qualification such as degree, master and PhD holder.
The overall stability of its political environment. Despite its multi ethnic and multi society, Malaysia is one of the few countries that has experience changes in leadership without loss of continuity in government policies.
GROWTH & DEVELOPMENT IN ISLAMIC PERSPECTIVE
Material and riba (interest) is a must, gharar and uncertainty income.
derived from internal (zakat, EPF) and external (borrowing from another muslim country.
material based ie GDP, per capita income, saving, investment, infrastructure and development project
ultimate objective economic development is not merely material welfare in this world but extendes to hereafter (falah).
Most economist agree that entrepreneurship is the key economic growth.
Entrepreneurship is the creative ability of individual to seek profit by combining resources to produce innovative product.
2. Human Resource
An efficient labor force is important for economic growth.
From the Islamic perspective, efficiency requires both professional and moral quality so as to get the maximum contribution from the labor force.
Meanwhile the conventional only emphasizes professional quality.
1. Investible Resource
: Such as plant and machinery. Plant and machinery generate output and creating a flow of income to the economy. From the Islamic perspective, to have such growth, the economy need capital and the capital can be derived from two sources namely internal and external
can be derived from borrowing from other Muslim countries, so as to minimize the riba based debt.
is normally from zakat, voluntary saving, force saving (EPF) and through taxes. It must be remembered that Usuary (riba) is considered haram. It is not allowed in Islam.