Economic Growth and Development - A Comparison



economic growth and development a comparison growth and development let us understand the terms economic growth and economic development in much more detail economic growth is a narrower concept than economic development it is defined as the increase in the value of goods and services produced by every sector of the economy it refers to increase over time in a country's real output of goods and services it is usually expressed in terms of the gross or net national product however other measures could be employed such as the extent of urbanization degree of industrialization level of human development etc economic growth does not take into account the size of the informal economy economic growth does not take into account the depletion of natural resources which might lead to pollution congestion and disease economic development is a normative concept that is it applies in the context of people's sense of morality right and wrong good and bad there is far more to economic development than income growth for if income distribution is skewed growth may not be accompanied by much progress towards the goals that are usually associated with economic development the definition of economic development given by Michael Todaro is an increase in living standards improvement in self-esteem needs and freedom from oppression as well as a greater choice thus it implies progressive changes in the social economic structure of a country it involves study of decline in the share of agriculture in GDP and a corresponding increase in the share of industries trade and banking construction and other services in GDP according to Mayo and Baldwin economic development is a process whereby a country's real national income increases over a long period the economic development of a country is defined as the development of the economic wealth of the country economic development is aimed at the overall well-being of the citizens of a country as they are the ultimate beneficiaries of the development of the economy of their country a quick look at the differences between growth and development to summarize economic development is the development of economic wealth of countries all regions for the well-being of their inhabitants economic growth and development are two different terms used in economics generally speaking economic development refers to the problems of underdeveloped countries and economic growth to those of developed countries the term economic development is far more comprehensive it implies progressive changes in the social economic structure of a country viewed in this way economic development involves a study of decline in the share of agriculture in GDP and a corresponding increase in shares of industries trade banking construction and other services further whereas economic growth merely refers to rise in output development implies change in technological and institutional organization of production as well as in distributor pattern of income hence compared to the objective of development economic growth is easy to realize by a large mobilization of resources and raising their productivity output level can be raised the process of development is far more extensive apart from a rising output it involves changes in composition of output shift in the allocation of productive resources and elimination or reduction of poverty inequalities and unemployment economic development is not possible without growth but growth is possible without development because growth is just increased in GNP it does not have any other parameters to it




Comments
  1. Great Video thanks for posting.

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  2. Economic development is the real assets that we want, and its core is democracy both in political and economic system. Without democratic decision-making, economy has few way to development from growth.   

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