Economic growth is a necessary but not sufficient condition of
economic development.
There is no single definition that encompasses all the aspects of
economic development. The most comprehensive definition perhaps of
economic development is the one given by Todaro:
‘Development is not purely an economic phenomenon but rather a multi –
dimensional process involving reorganization and re orientation of the
entire economic and social system.
Development is a process of improving the quality of all human lives
with three equally important aspects. These are:
1. Raising peoples’ living levels, i.e. incomes and consumption,
levels of food, medical services, education through relevant
growth processes.
2. Creating conditions conducive to the growth of peoples’ self
esteem through the establishment of social, political and economic
systems and institutions which promote human dignity and respect.
3. Increasing peoples’ freedom to choose by enlarging the range of
their choice variables.’
Economic growth may be defined as an increase in a country's ability
to produce goods and services. Economic growth merely refers to an
increase in the real Gross Domestic Product, or GDP per capita over a
period of time.
It is natural to be misled by the idea that economic growth is the key
to economic development and perhaps a condition of development itself,
but development is more than simply increasing economic output i.e.
GDP per capita. It is a wider concept than economic growth. A
country's economy may experience real growth of GDP with no economic
development taking place. Nevertheless, wider more meaningful
indicators of development are often correlated with GDP per capita,
such as The ...
... middle of paper ...
... toll on the quality of life of citizens.
Thus it is evident that economic development does not always lead to
an improvement in living standards, due to its limited scope and
inability to impact the non materialistic aspects of human life.
Bibliography:
- http://www.questia.com/PM.qst?a=o&d=5000372316
- http://www.bized.ac.uk/learn/economics/development/growth/index.htm
- http://www.msu.edu/user/smythdav/growth.htm
- Morris, Arthur, (1998).Geography and Development, London, UCL Press,
LTD.
- http://www.chiptaylor.org/notes/2004/05/flammang_1979_economic_growth_vs_
economic_development.html
- http://en.wikipedia.org/wiki/Standard_of_living
- http://www.bized.ac.uk/virtual/dc/farming/theory/th3.htm
- http://www.nobel.se/economics/laureates/1998/sen-autobio.html
- http://www.bized.ac.uk/virtual/dc/copper/theory/th8.htm
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