Development Economic Assignments

Growth vs Development
Munazza Wardak
Growth and Development:
Growth is the physical increase in size or quantity of an organism, whereas development refers
to the qualitative changes in abilities, behaviours, or functions over time.
Development must involve both changes in the relations of production and the development of
the forces of production. In addition, associated with the relations of production are the
prevailing political, legal, and economic institutions, and these institutions must be eradicated
(and not merely reformed) concomitantly with the transformation of the relations of production.
Click or tap here to enter text. (Henry, 1987)
Economic Growth and Economic Development:

Economic growth refers to the increase in the production of goods and services within an
economy, usually measured by the growth rate of Gross Domestic Product (GDP). Economic
development, on the other hand, refers to broader changes in the economy, society, and
institutions that improve the standard of living and well-being of the population. Economic
growth measures an increase in Real GDP (real output). GDP is a measure of the national
income / national output and national expenditure. It basically measures the total volume of
goods and services produced in an economy.
 Economic growth means an increase in real national income / national output.

 Economic development means an improvement in the quality of life and living
standards, e.g. measures of literacy, life expectancy and health care.
 we would expect economic growth to enable more economic development. Higher
real GDP enables more to be spent on health care and education. (Pettinger, 21)
Economic Development: Economic development considers various indicators,
including:
1. Real Income per Capita: This reflects the GDP per capita, providing insight into the
average income levels within an economy.
2. Education and Literacy Standards: It evaluates the literacy rates and educational
attainment, which are crucial for human capital development and productivity.
3. Healthcare Standards: This includes metrics such as the availability of healthcare

professionals per 1000 population, indicating access to essential healthcare services.
4. Housing Quality and Availability: The quality and availability of housing reflect the
overall standard of living and housing conditions within a society.
5. Environmental Quality: Measures the level of environmental pollution and

sustainability, indicating the impact of economic activities on the environment.
6. Life Expectancy: Reflects the overall health and well-being of the population, influenced
by factors like healthcare access and living standards.
7. Absolute Poverty: Examines whether individuals have sufficient resources to meet basic
needs such as food and shelter, indicating the prevalence of poverty within an economy.
Economic Growth vs. Economic Development: While economic growth is essential for
increasing incomes and improving living standards, it may not necessarily lead to
equitable development. Economic growth could bypass the poorest segments of society,
leading to unequal distribution of benefits. For instance, higher GDP growth may not
directly translate into improved education standards or reduced poverty rates if resources
are not effectively allocated.
Education Standards: Investment in education is vital for economic development, as it

enhances human capital and productivity. However, economic growth does not guarantee
improved education outcomes. Despite increased GDP, literacy rates may remain stagnant
if education policies and investments are inadequate.
Environmental Standards: Economic growth often comes at the cost of environmental

degradation. Increased production and industrial activities may lead to pollution and
resource depletion. Thus, economic development strategies should focus on sustainable
practices to minimize environmental harm while fostering growth.
Transport and Infrastructure: Infrastructure development, including transportation

networks, is crucial for economic development. Improving infrastructure enhances
connectivity, facilitates trade, and promotes economic activities, particularly in remote or
underdeveloped regions.

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Growth vs Development

Economic Growth and Economic Development:

 Economic growth means an increase in real national income / national output.

3. Healthcare Standards: This includes metrics such as the availability of healthcare

5. Environmental Quality: Measures the level of environmental pollution and

Education Standards: Investment in education is vital for economic development, as it

Environmental Standards: Economic growth often comes at the cost of environmental

Transport and Infrastructure: Infrastructure development, including transportation

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