Disadvantages of Economic Development

Economic development is a process of economic growth with an improvement in socio-economic and technological advancement. Economic growth refers to the continue increasing of Gross Domestic Products (GDP) or Gross National Products (GNP) or the ability of a country to produce more goods and services every year. There are 3 disadvantages of economic development such as social problems, pollution, and the existence of income gaps contributes.

Firstly, one of costs economic development is social problems. Social problem is a condition that at least some people in a community view as being undesirable. Every newspaper is filled with stories about undesirable social conditions. Examples include crime, violence, drug abuse, and environment problems. Such social problems can be found at the local, state, national and international levels. Basically, social problems effect of economic development through attitude of the citizen of the country toward the progress. The society actually represents as the value of achievement, personal gain and accumulation of wealth and things generally. In the case of social problems in Malaysia, this problem occurs due to the western culture influence. For instance, the build-up of the night club may affect the environment influence of Malaysia such as drug abuse, and the activity of prostitution. These will make the well-mannered and the custom of Malaysia will erode by this influence.

The next point is the pollution. Pollution is the addition to the ecosystem of something which has a detrimental effect on it. One of the most important causes of pollution is the high rate of energy usage by modern and growing population. Pollution has serious implications for economic growth and welfare because of its impact on health, resource depletion, and natural calamities linked to climate change. The manufacturer or company will emphasize of their profit by using of the new technology. But it is a make a higher cost to use on their operation. Therefore, they will cut down on their cost for buying the advancement of technology machine in their production. It will lead to them to ignore the environment. In the part of social welfare, the pollution will make the implications on society health. Besides, on the physical effects of pollution is the result of oil spills. The marine life such as fish and plankton will be destroyed by the pollution. In this case, the fisherman will loss of their income and the price of fishes will be increases due to the inflation.

Last but not least, the existence of income gaps contributes one of the costs economic developments. An income gap refers as the unequal distribution of household or individual income across the various participants in an economy. Economy inequality varies between societies, historical periods, economic structures, system of economic and between individuals’ abilities to create wealth. Such capitalism economy or known as laissez-faire, every individual in the country has a right to acquire private ownership of resources. Individuals can own the resources and they can accumulate property and use it as they choose.  In the economic developments, the income inequality will disappear when there are exists a group of people conquer the asset or equity. In addition, there are several reasons contributing to this situation and among others such as difference in human skills and ownership, difference access to capital, educational attainment and the employment pattern. In a nutshell, the rich become richer, the poor become poorer.