ABSTRACT
The aim of the Principles was not only to elaborate economic theory according to the latest advances in that field, but to provide a textbook to replace the Wealth of Nations, where, according to John Stuart Mill, the principles of economic theory "are associated with their applications". Economic development, defined as an increase in income per head, is therefore not an aim in itself. How the increase is going to be distributed is as important, if eradication of poverty is the ultimate aim. More specific studies acknowledge that Mill did assign institutional factors some role: Mill believed that non-economic factors played an important role in human affairs, which involved economic progress. The supply of labour depends on population and the rate of labour force participation. Given the labour force participation, "the increase of labour is the increase of mankind; of population". The quality of the work force depends on skill, intelligence and moral qualities.
