Theoretical and Conceptual Background

Abstract

Economic development refers to the process and policy endeavors that aim to increase the sustenance (the ability to meet basic needs), the self-esteem (the sense of worth and self-respect), and the freedom (the ability to choose among a bundle of alternatives to satisfy ones needs) of a given society (Todaro and Smith, 2012). A multitude of environmental, social, economic, and political challenges impinge upon the prospects of the economic development in the contemporary LDCs. The relationship between the environment and the economy in LDCs is complex and strong. Poor countries usually depend on the environment for energy (e.g. fuel-wood, hydropower), for food (e.g. agriculture, fishing), and for exports (e.g. extractives, timber).