An increase in the economic variable over a period of time is economic growth. The term can be used in as individual case or in the case of important aspect of growth it its quantifiability i.e. one can measure it in absolute terms. Though growth is a value neutral term i.e. it might be positive or negative for an economy for a period, we generally use it is the positive sense.
For economists development indicates the quality of life in the economy which might be seen in accordance with the availability of so many variables such as:
It means before assuring development we need to assure growth. And higher economic development requires higher economic growth. But it does not mean that a higher economic development. we may have some diverse cases of growth and development:
Economic development is quantitative as well as qualitative progress in an economic. It means, when we use the term growth we mean quantitative progress and when we use the term development we mean quantitative as well as qualitative progress. If economic growth is suitably used for development it comes back to accelerate the growth and ultimately greater and greater population brought under the arena of development. Similarly, high growth with low development and ill-cared development finally results into fall in growth. Thus, there is a circular relationship between growth and development.
Human Development Index
The United Nations Development Programme (UNDP) published its first Human Development Report (HDR) in 1990. The report has a human development index (HDI) which was the first attempt to define and measure the level of development.
The 'index' was a product of selected team of leading scholars, development practioners and members, development practioners and members of the Human Development Report office of the UNDP. The first such team which developed the HDI was led by Mahbub UI Haq and Ing Kaul. The term 'human development' is a corollary of 'development' in the index.
The HDI went on to select three broad parameters and allotted them an equal weightage on the scale of one and measured the development of countries included in the report. The three parameters are given below:
The UNDP ranked the economies in accordance of their achievements on the above-given three parameters on the scale of one (i.e.0.000 -1,000). As per their achievements the countries were broadly classified into three categories with a range of points on the index.
Gross National Happiness
Bhutan has developed a new concept of development in early 1970s- the Gross National Happiness (GNH).
Without rejecting the idea of human development propounded by the UNDP, the kingdom has been officially following the targets set by the GHN. Bhutan has been following up the GNH since 1972. Which has the following parameters to attain happiness/ development.