The contribution of rwandan health insurance in economic development of rwanda

2.2.4. Economic development

Economic development: refers to social and technological. It implies a change in the way goods and services are produced, not merely an increase in production achieved using the old method of production on a wider scale Economic development refers to. It implies a change in the way goods and services are produced, not merely an increase in production achieved using the old methods of production on a wider scale. Economic development typically involves improvements in a variety of indicators such as literacy rates, life expectancy, and poverty rates. GDP does not take into account other aspects such as leisure time, environmental quality, freedom, or social justice; alternative measures of economic wellbeing have been proposed. (M. Todaro 2000:18)

A country's economic development is related to its human development, which encompasses, among other things, health and education. In other words Economic development is the increase in the standard of living in a nation's population with sustained growth from a simple, low-income economy to a modern, high-income economy also, if the local quality of life could be improved, economic development would be enhanced. Its scope includes the process and policies by which a nation improves the economic, political, and social well-being of its beneficiaries (M. Todaro; 2000:18).

Gonçalo L. Fonsesca at the New School for Social Research defines economic development as "the analysis of the economic development of nations." The University of Iowa's Center for International Finance and Development states that: `Economic development' is a term that economists, politicians, and others have used frequently in the 20th century. The concept, however, has been in existence in the West for centuries. Modernization, Westernization, and especially Industrialization are other terms beneficiaries have used when discussing economic development. Although no one is sure when the concept originated, most beneficiaries agree that development is closely bound up with the evolution of capitalism and the demise of feudalism" (Ibrahim, 1998:2).

In many developing countries however, the masses are complaining that development has not reached them, instead growth has been attended by high rates of unemployment and absolute and relative deprivation. This calls for putting the needs of the poor as a top priority, economic growth and efficiency should come late. However, viewing the above definitions as put forward by several writers, development is to be attained only if the low income are put into consideration by accessing them with the means of production and become the source of development other than being an obstacle to development (Ibrahim, 1998:2).

This was achieved through provision of income generating activities, creation of rural based industries and improved educational facilities and these in hand with the healthy body of the beneficiaries through the provision against various illnesses as well as disease. The study of economic development by social scientists encompasses theories of the causes of industrial-economic modernization, plus organizational and related aspects of enterprise development in modern societies (Ibrahim, 1998:2).

It embraces sociological research on business organization and enterprise development from a historical and comparative perspective; specific processes of the evolution (growth, modernization) of markets and management-employee relations; and culturally related cross-national similarities and differences in patterns of industrial organization in contemporary Western societies; (Ibrahim, 1998:2). Economy Development can also be considered as a static theory that documents the state of economy at a certain time. According to Schumpeter (2003) the changes in this equilibrium state to document in economic theory can only be caused by intervening factors coming from the outside.

The notion of development is complex and multidimensional. It suggests progress and improvement. Development occurs with: the reduction and elimination of poverty, inequality and unemployment within a growing economy. Such outcome is development because they mean improved quality of life for all. Development is a qualitative change, which entails changes in the structure of the economy, including innovation in institutions, behavior and technology. Development entails the enrichment of materials ,social well being ,which can be measured in the flow of money and goal over time , increases in a jurisdictions' quality and quantity of public goods and access to job, (Schumpeter 2003:103 )

Todoro (1988) identifies three objectives of development:

i. Increases in the availability and improvements in the distribution of food, shelter, health, protection, ect.

ii. Improvements in `levels of living', including higher incomes, more jobs, better education, ect.

iii. Expansion in the range of economic and social choices available to individuals and nations.

The goals of development include: a balanced, healthful diet; adequate medical care; environmental sanitation and disease control; lab our opportunities; sufficient educational opportunities; individual freedom of conscience and freedom from fear; decent housing; economic activities and harmony with the natural environment; and political processes promoting equality.