Economic Growth and Development - A Comparison - Understanding Economic Development Video Lecture | Economics for JAMB

economic growth and development a
comparison growth and development let us
understand the terms economic growth and
economic development in much more detail
economic growth is a narrower concept
than economic development it is defined
as the increase in the value of goods
and services produced by every sector of
the economy it refers to increase over
time in a country's real output of goods
and services it is usually expressed in
terms of the gross or net national
product however other measures could be
employed such as the extent of
urbanization degree of industrialization
level of human development etc economic
growth does not take into account the
size of the informal economy economic
growth does not take into account the
depletion of natural resources which
might lead to pollution congestion and
disease economic development is a
normative concept that is it applies in
the context of people's sense of
morality right and wrong good and bad
there is far more to economic
development than income growth for if
income distribution is skewed growth may
not be accompanied by much progress
towards the goals that are usually
associated with economic development
the definition of economic development
given by Michael Todaro
is an increase in living standards
improvement in self-esteem needs and
freedom from oppression as well as a
greater choice
thus it implies progressive changes in
the social economic structure of a
country it involves study of decline in
the share of agriculture in GDP and a
corresponding increase in the share of
industries trade and banking
construction and other services in GDP
according to Mayo and Baldwin economic
development is a process whereby a
country's real national income increases
over a long period the economic
development of a country is defined as
the development of the economic wealth
of the country economic development is
aimed at the overall well-being of the
citizens of a country as they are the
ultimate beneficiaries of the
development of the economy of their
country a quick look at the differences
between growth and development
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to summarize economic development is the
development of economic wealth of
countries all regions for the well-being
of their inhabitants economic growth and
development are two different terms used
in economics
generally speaking economic development
refers to the problems of underdeveloped
countries and economic growth to those
of developed countries the term economic
development is far more comprehensive it
implies progressive changes in the
social economic structure of a country
viewed in this way economic development
involves a study of decline in the share
of agriculture in GDP and a
corresponding increase in shares of
industries trade banking construction
and other services further whereas
economic growth merely refers to rise in
output
development implies change in
technological and institutional
organization of production as well as in
distributor pattern of income hence
compared to the objective of development
economic growth is easy to realize by a
large mobilization of resources and
raising their productivity output level
can be raised the process of development
is far more extensive apart from a
rising output it involves changes in
composition of output shift in the
allocation of productive resources and
elimination or reduction of poverty
inequalities and unemployment economic
development is not possible without
growth but growth is possible without
development because growth is just
increased in GNP it does not have any
other parameters to it
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