Economic Growth & Development - Economics, UPSC, IAS UPSC Notes | EduRev

Economy and Indian Economy (Prelims) by Shahid Ali

UPSC : Economic Growth & Development - Economics, UPSC, IAS UPSC Notes | EduRev

The document Economic Growth & Development - Economics, UPSC, IAS UPSC Notes | EduRev is a part of the UPSC Course Economy and Indian Economy (Prelims) by Shahid Ali.
All you need of UPSC at this link: UPSC

Economic Growth & Development

Economic Growth

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.

Economic Growth & Development - Economics, UPSC, IAS UPSC Notes | EduRev

ECONOMIC DEVELOPMENT

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:

  1. The level of nutrition.
  2. The expansion and the reach of healthcare facilities- hospitals, medicines, safe drinking water, vaccination, sanitation, etc.
  3. The level of education among the people.
  4. There might be many more variables on which the quality of life depends.

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:

  1. Higher growth and higher development
  2. Higher growth and lower development
  3. Lower growth but higher 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:

Economic Growth & Development - Economics, UPSC, IAS UPSC Notes | EduRev

  1. Standard of living: to be indicated be the real per capita income adjusted for the differing purchasing power parity (PPP).
  2. Knowledge: to be measured by indicators related to the level of education.
    1. Educational attainment among the adults (given 2/3rd weightage).
    2. School enrollment (given 1/3rd weightage).
  3. Life Expectancy: to be calculated at the time of birth.

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.

  1. High Human Development Countries: 0.800-1.000 points on the index.
  2. Medium Human Development Countries: 0.500-0.799 points on the index.
  3. Low Human Development Countries: 0.000-0.499 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.

  1. Higher real per capital income.
  2. Good Governance.
  3. Environment Protection.
  4. Cultural Promotion (i.e. inculcation of ethical and spiritual values in life without which, it says, progress may become a curse rather than a blessing).
Offer running on EduRev: Apply code STAYHOME200 to get INR 200 off on our premium plan EduRev Infinity!

Complete Syllabus of UPSC

Dynamic Test

Content Category

Related Searches

Semester Notes

,

IAS UPSC Notes | EduRev

,

IAS UPSC Notes | EduRev

,

past year papers

,

UPSC

,

Summary

,

practice quizzes

,

Sample Paper

,

Objective type Questions

,

Previous Year Questions with Solutions

,

UPSC

,

IAS UPSC Notes | EduRev

,

UPSC

,

mock tests for examination

,

ppt

,

Extra Questions

,

Important questions

,

Economic Growth & Development - Economics

,

study material

,

Free

,

Economic Growth & Development - Economics

,

Economic Growth & Development - Economics

,

MCQs

,

Viva Questions

,

video lectures

,

Exam

,

shortcuts and tricks

,

pdf

;