The Concept of Economic Growth & Development

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Development is one of the most important factors of human life and one of the abilities which distinguish humans from animals. Over time, humans have realized their power to gain whatever they want from the environment. However, it has not taken too long for people to understand that this trend can end up with a disaster. Over consumption of limited natural resources can cause environmental degradation in an environment that humans are depends on it for living. This essay will look into the concept of economic growth and the effects of economic growth on the environment. Then, by analyzing the current situation, this essay will attempt to answer the question "how and how much can humans reduce environmental degradation?”

The concept of economic growth & development

Economists evaluate development as “economic growth” and measuring it by calculating the gross domestic product (GDP) to find and compare the level of economic activity in different countries usually in dollar. There are many ways to calculate the GDP. However, according to Redmond (2006) GDP is “the total value of goods and services produced in a country over a period of time” usually a year. In other words, GDP is consumption + investment + government spending + [exports – Imports] (Stanford, 2008). In case of world GDP, this formula shows us the human-being consumption value.

GDP measure the economic growth But it cannot measure “social changes” which is equally important and effective on development (Seitz, 2008). In some cases social changes that fallow economic growth can accelerate the environmental degradation. According to UN's Food and Agriculture Organization by 2050 meat production doubled. This is more than the rate of population growth. In other words,...

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...at education is one of the priorities for any changes. But it must be with aim to bring common belief about future (ibid.).

Finally if all of these tasks are done, maybe there is a possibility to postpone effect of environmental degradation for a few years. But to solve this issue completely the only solution remaining is using new technology and using it in right way (ibid.).

Conclusion

None of these solutions mean that government have to reduce the rate of economic growth. Some of the environmental degradation still can be prevented. Others (like extinction of species) are too late to be prevented. The main point is that economy can grow under cover of sustainable development if people come to the conclusion that they have to pay for that even by reducing the rate of population and economic growth. Otherwise, the nature will show it to humans in a hard way.

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