ECONOMICS January 18, 2017February 23, 2017adminshare this
Most of us use the terms Economic Growth and Economic Development as synonyms but there exist major differences between these terms and now it’s time to know the differences between these two important terms.
ECONOMIC GROWTH
Economic Growth may be defined as a steady and constant rise in the country’s output of goods and services over a period of time. It indicates the expansion of the Gross Domestic Product(GDP) of the country. The concept of Economic Growth is basically related to the developed countries
ECONOMIC DEVELOPMENT
Economic Development is a wider concept than the Economic Growth. Economic Development refers to the increase of the Real National Income of the economic and socio-economic structure of a country over a long period of time. Economic Development is related to developing countries of the world.
According to C.P.Kindle Berger, “Economic Growth means more output and Economic Development implies more output and also change in the technological and institutional arrangements by which the output is produced.
According to economist Amartya Sen, “economic growth is one aspect of the process of economic development”.
According to United Nations expert committee, “Economic development concerns not only man’s material needs but also the improvement of the social conditions of his life”.
COMPARISON TABLE
Now let us see some of the differences between Economic Growth and Economic Development in the below given table.
ECONOMIC GROWTHECONOMIC DEVELOPMENTEconomic Growth refers to the increase in the value of the real output of goods and services in the country.Economic Development not only refers to the Economic Growth but also to the progressive changes in the socio-economic structure of a county. Related toEconomic Growth is related with developed countries of the world.Economic Development is related with Underdeveloped and developing countries of the world. When will it happen?Economic Growth takes place when the rate of change of Real National Income is higher than the rate of change of population in a country in a certain time period.Economic Development takes place when there is an increase in the Real per capita income of the people in the country for a long period of time. Focused OnEconomic Growth is a measure for measuring how much money is flowing from one individual to another individual in the economy. Economic Development focuses on the development of the society and increasing the quality of life of the people of the country. NatureEconomic Growth is considered as one of the instruments for achieving Economic Development. On the contrary Economic growth alone can’t bring the Economic Development.Economic Development is a broader concept which includes Economic Growth, Infrastructural, social, and political factors. ScopeEconomic Growth is considered as a narrow measure and single dimensional in nature as it only focuses on the income of the people of the country.Economic Development is considered as a whole measure and Multidimensional phenomenon because it focuses on the income of the people and also on the improvement of the living standards of the people of the country. DurationEconomic Growth is a short term process as changes in income is calculated every year generally.Economic Development is a long term process because to develop various facilities to improve the life of the people takes more time. Government SupportEconomic Growth is an automatic process and may not require governmental support or intervention.Economic Development highly require governmental support and intervention because without developmental policies of the government, Economic Development is not possible. Measure ofEconomic Growth is quantitative in nature because it is concerned with how much of goods and services are produced in the country in a certain period of time.Economic Development is qualitative in nature because it focuses on improving the quality of life of the people in the country. Wealth distributionEconomic Growth does not focus on fair distribution of wealth among the people in the country.Economic Development concentrates on a balanced growth of the economy and fair and equitable distribution of the wealth among the people.