More Menu

What is Economic Growth and Economic Development?

byPosted at

 An Introduction

The previous article you may read about Economic Planning in India. Let's hear learn about economic growth and economic development .Economics is all about making smart choices to deal with a lack of things to do. Economic growth is the most important way to measure how well a country is using its limited resources. People keep an eye on their income and the value of their assets. Businesses keep track of how much money they make and how much of the market they are in. Nations keep track of a lot of different things to see how well their economies are doing, like national income, productivity, and so on. Some economists say that in addition to measuring growth and productivity, any analysis of the country's economy should also look at things like distribution, equity, per-capita income, and so on. Further, the country should also pay attention to other needs of society, like environmental justice or cultural preservation, to keep the economy growing. This allows for overall human development in the economy through more opportunities in the fields of education, health care, employment, and the preservation of the environment.

What is Economic Growth

The process of economic growth is when the country's real national and per capita income rises over a long period of time. This is called economic growth. These are some of the things that make economic growth happen.

  • Economic growth means that there is more money in the world and more money in each person's pocket. Economic growth is better measured by how much money people make per person. This shows how people's living standards are getting better.
  •  Economic growth isn't just about how much money people make or how much money the country makes. It's also about how much real income the country makes. In other words, the increase should come from a rise in the amount of goods and services being made, not just a rise in their prices.
  •  Over a long time, real income should rise. The rise in real national income and per-capita income should last for a long time. In the short term, seasonal or short-term rises in income should not be seen as economic growth.
  • Economic growth can only last if it is linked to an increase in the economy's productive capacity, such as the use of new technology or better infrastructure.

What is Economic Development 

Economic growth is when there is a long-term improvement in the material well-being of society. Economic development is a more general term than economic growth. It also includes changes in society, culture, politics, and the economy, all of which make things better in the long run. There have been changes in resource supplies, the rate at which capital is created, the size and composition of people in the world. There have been changes in technology, skills, efficiency, institutional and organizational set-up, and so on. These changes are part of a larger plan to make sure that more people have equal access to money, more jobs, and less poverty. People talk about economic development as a long chain of changes in the structure of demand and supply that lead to a rise in the country's net national product over time. This is called economic growth.

Difference between Economic Growth and Economic Development 

Economic Growth- 
  1. It means that there is more real output of things and services for people to buy in the country as a whole.
  2. Growth is when one of the parts of Gross Domestic Product, like consumption, government spending, investment, or net exports, grows over time.
  3. Economic growth is measured by things like how much real GDP or how much money each person makes.
  4. In the long run, economic growth leads to changes in the economy in terms of how many people there are and how much money Economic growth is a measure of how much money the country or each person makes.
Economic Development-

  1. Economic development entails changes in income, savings, and investment, as well as incremental changes in the country's socioeconomic structure (institutional and technological improvements).
  2. Development is defined as the expansion of human capital, the reduction of inequality, and structural changes that improve the population's quality of life.
  3. Economic development is quantified using qualitative indicators such as the HDI (Human Development Index), gender-related indices, the Human Poverty Index (HPI), infant mortality, and literacy rates.
  4. Economic development alters both the qualitative and quantitative characteristics of the economy.
  5. Economic growth indicates a country's progress toward a higher standard of living.
Post a Comment
Tag
SocialWorkin Qualified Team Member

Comments

Thank You