Difference Between Economic Development And Development Economics – Economic development is the process by which a developed country becomes a developed economy. On the other hand, the process by which a country with a low standard of living becomes a country with a high standard of living. Economic development also refers to the process by which the general health, well-being and education of the general population is improved.

Longer life expectancy, for example, is a result of economic development. Improved productivity, higher literacy rates and better public education are also consequences.

Difference Between Economic Development And Development Economics

“The process by which the economy grows or changes and becomes more advanced, especially when both economic and social conditions improve.”

Human Capital And Human Development

“Economic development is the process by which a nation improves the economic, political and social well-being of its people,” Wikipedia says.

Economic growth refers to the expansion of GDP, that is, the size of the economy. GDP represents GDP.

GDP is the sum of all economic activities in a country over a given period. It is the net value of all the products and services that the economy produces.

On the other hand, development looks at the broader scope of statistics rather than GDP or GDP per capita. GDP per capita is the GDP divided by the total population.

Economic Growth And Development Growth Vs Development

Economic development looks at how the citizens of a country are affected. In addition to their standard of living, it also looks at the freedom they have to enjoy those standard of living.

Economic growth is an important condition for development. However, growth alone is not enough because it cannot guarantee development.

Indian economist and philosopher Amartya Kumar Sen, who won the Nobel 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 own destiny.”

Lesson 2: What Is Development Economics? (1)

“Obstacles to freedom and therefore development include poverty, lack of economic opportunities, corruption, poor governance, lack of education and lack of health.”

Suppose there are two countries, Fairland and Unfairland. Both countries have 1,000 people each. These countries are the most fictional.

If we just look at GDP per capital, Unfairland seems to be a richer country. However, we do not know if there is economic development or not.

Greed, Unfairland’s richest man, earned $ 39 million of the country’s $ 40 million GDP. Posh, Fairland’s richest man, earned $ 1 million of the country’s $ 21 million GDP.

Pdf) Development Economics

In Fairland, 99% of the population is literate, while in Unfairland it is 60%. Fairland has free global health care. In Unfairland, on the other hand, only half of the population has access to affordable health care.

For every mile of road and rail in Unfairland, Fairland has 6 miles and 11 miles, respectively. The term economic development is fundamentally different from the concept of economic growth. In simple terms, economic growth is related to the rate of change in GDP or per capita income of a country’s population. Growth is related to the quantitative aspects of change and growth. Thus, economic growth is a sustainable annual increase in the real national income of the economy over a long period of time. It is an increasing trend of pure national products at a fixed price.

The definition of economic growth is not complete. It is because gross national income can increase and at the same time people’s living standards may decline. This can happen when the population growth rate is higher than the rate of increase in national output. Per capita income increases when the economic growth rate is higher than the population growth rate.

Thus, further economic growth can be defined as the annual increase in real income for a person of a country over a long period of time. The main purpose of economic growth is to improve the living standards of the people, so economic growth should be determined in terms of real income or output per person, rather than just increasing national output, and such an increase in per capita income. Exactly should be increased sustainably. .

Micro And Macro: The Economic Divide

According to Michael P. Todaro and Stephen C. Smith, economic growth is defined as “a stable process by which the productive capacity of the economy increases overtime to bring about higher national output and income.”

Thus, economic growth is the continuous or sustained increase in real GDP per capita achieved by increasing the productivity of labor and the standard of living of the people. Growth rates are measured both in terms of gross domestic product (GNP) or gross national product (NNP) and per capita income.

The GNP measures the total output of goods and services that an economy is capable of producing, and per capita income measures how much of the actual goods and services that the average person will have for consumption and investment. The living conditions of the people of this country.

Therefore, international organizations such as the World Bank and the IMF have been using both measures of economic growth in their annual World Development Report to compare growth with the living standards of developed and developing countries. In Nepal, the Ministry of Finance and the Bank of Nepal Rastra Bank have been measuring Nepal’s economic growth based on either gross GDP or NNP and per capita income.

Pdf] The Dynamic Relation Between Population And Economic Development; A Systematic Analysis Review Considering Developing Countries’ Empirical Evidence

Simon Kuznets (1971 Nobel laureate in economics), a study of the economic growth trends of most of the world’s developed countries, identified six key characteristics of modern economic growth.

Thus, in any economy, economic growth occurs when the economy achieves an increase in national income (NI) in excess of its population growth rate. This will lead to an increase in GNP per person. In the developed countries of the world there is poverty. It can be eliminated if these countries manage to achieve a sustainable level of economic growth over a period of time.

The term economic development is different from economic growth. Economic growth is primarily related to the rate of change in national income or GDP. But economic development is associated with changes in quality and quantity in various aspects of human life.

Economic growth is necessary for economic development, but economic development includes more indicators of human life. Economic growth is considered a necessary condition for economic development. Economic growth depends directly on the productivity of inputs, the quality of inputs, access to socio-economic materials such as transportation, communication, technological improvements, health education and water supply, political stability, industrial development. Etc.

Differences Between Traditional Economics And Managerial Economics

The main objective of economic development is to ensure a fair distribution of income, wealth, resources and opportunities and to reduce poverty.

It is a narrow concept because it is based on the concept of increasing the actual output of a particular sector.

Meeting basic needs, Quality of Life Index (PQLI), Human Development Index (HDI), etc. are important indicators of economic development.

Economic growth is measurable in volume because it includes economic variables such as capital output ratio, trade balance, settlement balance and so on.

Economic Growth Vs Economic Development

It is almost impossible to measure quantitatively because it includes socio-cultural and political aspects of society, including economic variables.

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Unit 1 Developmental Economics Notes

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Development Economics Courses, Jobs & Scope

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Economic Development In An Era Of Climate Change

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