Difference Between Economics Growth And Economic Development – Economic development is the process by which new economies develop into advanced economies. In other words, the process by which countries with a low standard of living become countries with a high standard of living. Economic development refers to the process of improving the health, welfare and educational level of the population.
Longevity, for example, is one of the consequences of economic development. The results are also higher productivity, higher literacy rates and better public education.
Difference Between Economics Growth And Economic Development
“The process by which an economy grows or changes increases, especially when economic and social conditions improve.”
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According to Wikipedia: “Economic development is the process by which a country improves the economic, political and social well-being of its people.”
Economic growth refers to an increase in GDP, i.e. increasing the size of the economy. GDP means gross domestic product.
GDP is the sum of all economic activities of a country in a certain period of time. The net value of all goods and services produced by an economy.
Development, however, looks at broader numbers than GDP and GDP per capita. GDP per capita is GDP divided by the total population.
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Economic development takes care of the interests of the citizens of the country. Along with their standard of living, they also see the freedom they have to enjoy that standard of living.
Economic growth is an important aspect of development. However, growth alone is not enough because it does not guarantee development.
Amartya Kumar Sen, the Indian economist and philosopher who won the Nobel Memorial Prize in Economic Sciences, once said:
“Economic development is about creating freedom for people and removing barriers to greater freedom. Greater freedom allows people to choose their future.”
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“The obstacles to freedom and thus to development are poverty, lack of economic opportunity, corruption, lack of governance, lack of education and lack of health.”
Let’s imagine two lands, Fairland and Unfairland. Both countries have about 1,000 people. These countries are completely fictional.
Looking at GDP per capita, it appears that the unjust country is a rich country. But, we don’t know if there is more economic development.
Mr. Greed, the richest man in the Rogue Land, earned $39 million of the country’s $40 million GDP. Mr. Posh, the richest man in Fairland, earned $1 million out of the state’s $21 million GDP.
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In Fairland, 99% of the population is literate, and in Unfairland, 60%. Fairland has free healthcare. On the other hand, in Unfairland, half the population has access to affordable health care.
For every mile of road and rail in Unfairland, there are 6 miles and 11 miles in Fairland, respectively. Economic growth is the increase in goods and services produced by an economy or a country, taken into account over a period of time. The increase in the production of goods and services in the country is permanent. This could be due to better quality of education, improved technology or anything that adds value to the goods and services produced by each sector of the economy.
It can be measured as a percentage of inflation-adjusted gross domestic product. GDP is the market value of final goods and services produced in an economy or country.
Economic development focuses on qualitative and quantitative economic growth. It measures all factors, including people in a country who are wealthier, healthier, better educated and have better access to quality housing. Economic development offers more opportunities in the fields of education, health, employment and environmental protection. It represents the increase in per capita income for each citizen. Standard of living includes safe drinking water, improved sanitation systems, health facilities, expansion of primary education to improve literacy levels, eradication of poverty, balanced transport links, more career opportunities, etc. Quality of life is an important indicator of economic development. Therefore, in order to achieve the status of a developing country, it is necessary to increase the economic development of the economy.
Growth Without Economic Growth — European Environment Agency
This can be measured by the Human Development Index, which takes into account literacy levels and life expectancy, linked to the potential impact on economic growth.
Economic development and financial development are popular options in the market; Let’s talk about some of the key differences:
Economic development is considered multifaceted because it focuses on public revenue and improving the quality of life of people in the country.
This will have a huge impact on the economy. Increase in indicators such as per capita income and GDP.
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After reviewing the above data, we can say that economic growth is a part of economic development. Economic development is a broader concept than economic growth. Economic development uses various indicators to measure the progress of the economy as a whole. Economic growth, on the other hand, uses special indicators for calculation, such as gross domestic product, personal income, etc. Economic development is different from economic development, which can be defined as an increase in the economic resources of an economy or a nation for the welfare of its people. Here you need to understand that economic growth is important but not the only thing for economic development.
This has led to an important distinction between economic growth and economic development. Here we discuss the key differences between financial development and financial development with descriptive details and comparison tables. You can also check out the following articles to learn more
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🚀 Offer – All Open Sites 3700+ Lessons | 1900+ Test Series | 12000+ hours | @ 90% Off – Ends Now. In general, the term economic growth refers to the rate of change in a country’s GDP or per capita income. Growth is a big part of change and growth. Therefore, economic growth is a continuous annual increase in the national income of the economy over a long period of time. Net national income is increasing in real terms.
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This definition of economic growth is not exhaustive. This is because the gross national income is increasing while the standard of living is decreasing. This can happen when population growth exceeds the increase in national output. Per capita income increases when the rate of economic growth exceeds the rate of population growth.
Thus, economic growth can be defined as an annual increase in per capita income in a country over a long period of time. The main goal of economic growth is to raise people’s living standards, so economic growth should be explained by per capita income, not only by increasing national income, but by per capita income growth. .
According to Michael P. Todaro and Stephen C. Smith, economic growth is defined as “the continuous process by which the productive forces of the economy increase national income and productivity over a long period of time.”
Thus, economic growth is a consistent or consistent increase in gross GDP per capita achieved through increased productivity, employment and human well-being. The rate of economic growth is measured in two terms as gross national product (GNP) or net national product (NNP) and increase in per capita income.
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GNP measures the total output of goods and services that an economy can produce, while per capita income measures the amount of goods and services that a person of average wealth receives as consumption and investment, which is the average standard of living of people. Citizens of the country.
Therefore, international organizations such as the World Bank and the IMF have used two methods of economic growth in their World Development Reports to compare growth with the welfare levels of developed and developing countries. In Nepal, the Ministry of Finance and Rashtra Bank Nepal measure Nepal’s economic growth based on GDP or NNP and per capita income.
Simon Kuznets (1971 Nobel laureate in economics), who studied the economic growth trends of most of the world’s developing countries, identified six