File Name: similarities between economic growth and economic development .zip
Economic Growth is a narrower concept than economic development. It is an increase in a country's real level of national output which can be caused by an increase in the quality of resources by education etc.
- Economic Development vs. Economic Growth
- Economic Growth vs Economic Development
- Difference Between Economic Growth and Economic Development
- What are the Stages of Economic Development?
Economic Development vs. Economic Growth
Readers Question: What is the difference between growth and development? Can a country experience economic growth without development? Economic growth measures an increase in Real GDP real output. It basically measures the total volume of goods and services produced in an economy.
Development looks at a wider range of statistics than just GDP per capita. Development is concerned with how people are actually affected. It looks at their actual living standards and the freedom they have to enjoy a good standard of living. Absolute Poverty.
Do people have sufficient resources to maintain a healthy diet and basics of life such as shelter? Economic growth may be essential to enable higher incomes for people to be able to buy more food. A key issue is whether the benefits of economic growth are equitably distributed amongst different groups of society. Education standards.
Economic growth may enable more money to be spent on education. However, there is no guarantee that the proceeds of growth will be used to improve education standards.
There is often a weak correlation between GDP and literacy rates. Environmental standards. For example, higher output could cause more pollution.
If higher growth involves cutting down forests — this could have adverse environmental consequences in long-term. This may be important for regions which may be cut off from the main areas of economic growth. Measuring economic development is not as precise as measuring GDP because it depends on what factors are included in the measure.
There are several different measures of economic development, such as the Human development index HDI. It is possible to have economic growth without development. This could occur due to:. Economic development means an improvement in the quality of life and living standards, e. Ceteris paribus , we would expect economic growth to enable more economic development. Higher real GDP enables more to be spent on health care and education. However, the link is not guaranteed.
The proceeds of economic growth could be wasted or retained by a small wealthy elite. Economic development Development looks at a wider range of statistics than just GDP per capita. Measures of economic development will look at: Real income per head — GDP per capita Levels of literacy and education standards Levels of healthcare e.
Measures of economic development Measuring economic development is not as precise as measuring GDP because it depends on what factors are included in the measure. Average life expectancy compared to a global expected life expectancy. Educational standards and labour productivity. Basic levels of literacy and education can determine the productivity of the workforce.
Levels of inward investment. For example, China has invested in many African countries to help export raw materials, that its economy needs. Labour mobility. Is labour able to move from relatively unproductive agriculture to more productive manufacturing? The flow of foreign aid and investment.
Targeted aid, can help improve infrastructure and living standards. Level of savings and investment. Higher savings can fund more investment, helping economic growth. Economic growth without development It is possible to have economic growth without development. For example, if a country produces more oil, it will see an increase in GDP. A country may see higher GDP, but the benefits of growth may be syphoned into the bank accounts of politicians Environmental problems.
Producing toxic chemicals will lead to an increase in real GDP. However, without proper regulation, it can also lead to environmental and health problems. This is an example of where growth leads to a decline in living standards for many. Economic growth can cause an increase in congestion.
This means people will spend longer in traffic jams. GDP may increase but they have lower living standards because they spend more time in traffic jams.
Production not consumed. If a state-owned industry increases output, this is reflected in an increase in GDP. However, if the output is not used by anyone then it causes no actual increase in living standards. Military spending. A country may increase GDP by spending more on military goods. However, if this is at the expense of health care and education it can lead to lower living standards.
Evaluation It depends on the nature of economic growth. Are the proceeds of growth used to improve living standards? Might be useful to use statistics like the Human Development Index which look at real GDP, but also education and health care indexes. Causes of economic growth.
Economic Growth vs Economic Development
This overview considers the past, the present, and the future of economic development. It begins with the conceptualization, definition, and measurement of economic development, highlighting that a narrow focus on the economic is inadequate to capture development and even, paradoxically, economic development itself. Key aspects of economic and human development over the past seven decades are then outlined, and the current landscape is described. The paper then considers the future of economic development, highlighting the challenges faced by developing countries, especially the opportunities and risks provided by the recent downward global trend in the share of labor in overall economic activity. What is economic development and how has the concept evolved through the years?
Economic Growth is the increase in the real output of the country in a particular span of time. Whereas, Economic Development is the increase in the level of production in an economy along enrichment of living standards and the advancement of technology.
Difference Between Economic Growth and Economic Development
The key parameters of economic growth in any economy are its Gross Domestic Product GDP and gross national product which helps in measuring the actual size of an economy. For example, we say the GDP of India is 2. It shows how much the production of goods and services has increased compared to last year in a quantitative manner. It has many parameters to measure and few of them are as below:.
We have started our discussion of development by addressing very broad issues relating to the concept of development. However, much of the literature and thinking about 'development' focuses on economics. Indeed 'development' and 'economic development' have often been treated as synonymous concepts. The economic development of a country or society is usually associated with amongst other things rising incomes and related increases in consumption , savings, and investment. Of course, there is far more to economic development than income growth; for if income distribution is highly skewed, growth may not be accompanied by much progress towards the goals that are usually associated with economic development.
It can be measured as a percentage increase in real gross domestic product. Where a gross domestic product GDP is adjusted by inflation. Economic Development is the process focusing on both qualitative and quantitative growth of the economy. It measures all the aspects which include people in a country become wealthier, healthier, better educated, and have greater access to good quality housing.
Before addressing the question of what are the stages of economic development, it is useful to focus first on the main difference between economic growth and economic development.
What are the Stages of Economic Development?
Development economics is a branch of economics which deals with economic aspects of the development process in low income countries. Its focus is not only on methods of promoting economic development , economic growth and structural change but also on improving the potential for the mass of the population, for example, through health, education and workplace conditions, whether through public or private channels. Development economics involves the creation of theories and methods that aid in the determination of policies and practices and can be implemented at either the domestic or international level. Unlike in many other fields of economics, approaches in development economics may incorporate social and political factors to devise particular plans. The earliest Western theory of development economics was mercantilism , which developed in the 17th century, paralleling the rise of the nation state.
In the very first sentence of the book entitled Whose Development? It might seem rhetorical at first, but by no means is it so. Many writers argue that, after six decades of the so called development project aimed at raising the Third World out of poverty and improving the well-being of its citizens, one can speak of anything but true transformation. To put it crudely, thousands of children still die of malnutrition-related diseases every day, and millions of people still do not have access to clean water.
Economic Growth refers to the rise in the value of everything produced in the economy. It alludes to considerable rise in per-capita national product, over a period, i. Economic Growth is often contrasted with Economic Development , which is defined as the increase in the economic wealth of a country or a particular area, for the welfare of its residents. Here, you should know that economic growth is an essential but not the only condition for economic development. The economic trend in a country as a whole, is the major component for its business environment. An economy whose growth rate is high provides a promising business prospect and thus builds business confidence. In this article, you will find all the substantial differences between economic growth and economic development.
Readers Question: What is the difference between growth and development? Can a country experience economic growth without development? Economic growth measures an increase in Real GDP real output. It basically measures the total volume of goods and services produced in an economy. Development looks at a wider range of statistics than just GDP per capita. Development is concerned with how people are actually affected.
Энсей Танкадо отдал кольцо, надеясь обнародовать ключ. И теперь - во что просто не верится - какой-то ни о чем не подозревающий канадский турист держит в своих руках ключ к самому мощному шифровальному алгоритму в истории. Сьюзан набрала полные легкие воздуха и задала неизбежный вопрос: - И где же теперь этот канадец. Стратмор нахмурился: - В этом вся проблема. - Офицер полиции этого не знает. - Не имеет понятия. Рассказ канадца показался ему полным абсурдом, и он подумал, что старик еще не отошел от шока или страдает слабоумием.