Meaning of Economic Development and Growth - Economic Grade XI

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Meaning of Economic Development and Growth - Economic Grade XI

Meaning of Economic Development and Growth

Meaning of Economic Development
Economic development implies the progressive changes in the socio-economic structure of a country. In other words, economic development is a process of changing poor people and nation to an advanced living standard, better health, better education, increase in per capita income, etc. economic development brings a social, institutional and organizational change of a country. Economic development shows changes in economic growth. Thus, economic development = Economic growth + changes.

Meaning of Economic Growth
Economic growth means the transformation of the economy from the stage of underdeveloped to the stage of development. This transformation is mainly reflected in a sustained and steady rise in national income and P.C.I. economic growth is related to a quantitative change only. Thus, economic growth refers to an increase in the aggregate level of national income, output, and employment over a long period of time.

Difference Between Economic Development and Economic Growth
Economic growth and economic development are used by different economists in different ways. The main differences between these two terms are as follows:

Economic development Economic growth
1. It is concerned with developing countries. 1. It is concerned with developed countries.
2. It refers to the change in quantitative as well as qualitative aspects like political, social, historical, cultural, etc. 2. It refers to a quantitative change in economic variables like P.C.I, output, etc.
3. It is a multi-dimensional process so; it is a more complex phenomenon. 3. It is just an increase in economic variables, so it is a simple phenomenon.
4. It is a discontinuous and spontaneous concept. 4. It is a continuous concept.
5. It is the cause or process. 5. It is an economic development’s effect or result.
6. It needs economic growth. 6. There may be growth without economic development.
7. the indicators of economic development are PQLI(Physical Quality of Life Index), HDI, PCI, etc. 7. The indicators of economic growth are N.I, output, employment, P.C.I etc.

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