Economic Development and Economic Growth are two different words that are frequently commonly used to describe economic success. The fact is there is a significant gap between quantity and quality.
The extensive analysis of the economical journeys made by various countries is aided by complete awareness of the differences in definition of these two words.
WHAT IS ECONOMIC DEVELOPMENT?
Economic development is the process whereby a country’s overall population’s overall wellness, health, and educational level increases. It also refers to the increased production volume as a result of technological improvements.
It’s really the qualitative development in the lives of a nation’s inhabitants, and it is best measured by the Human Development Index (HDI). Several factors influence a nation’s overall growth, including creating jobs, technical developments, quality of life, living circumstances, per capita income, life quality, self-esteem requirements, GDP, industry and infrastructure development, and so on.
WHAT IS ECONOMIC GROWTH?
Economic growth refers to the rise in the production of a country’s economy. The percentage growth in the nation’s gross domestic product is used to quantify these quantitative changes in limited terms. Economic growth frequently ignores variables that aren’t part of the official economy. As comparison to economic development, economic growth is a restricted notion.
HOW DO THE TWO WORKS IN RELATION TO ONE ANOTHER?
Economic development efforts will result in numerous qualitative modifications in an economy, that will eventually have an influence on overall production. Economic growth may be influenced by favourable changes in economic development, resulting in a significant connection between the two. Economic development has a number of distinct stepping – stone to get there before it can achieve its broad objective of economic growth.
Economic growth is unconcerned with long-term sustainability or the depletion of resources, both of which can have negative consequences for an economy, such as pollution or sickness. Economic Development aims to ensure a region’s long-term viability, and will investigate indications of depleting resources, attempting to alter course where possible.
Morality isn’t taken into account when it comes to economic growth. Undocumented economic activity, such as illicit markets, is not taken into account when calculating growth. While economic development doesn’t really try to seek to combat the informal economy, the actions it does (such as improving quality of life and reducing inequality) tend to strengthen the formal economy to the point where the informal sector’s influence is reduced.
Here I have shown the comparison table to clear our views on what is actually economic growth v/s development
ECONOMIC GROWTH v/s DEVELOPMENT COMPARISION TABLE
|BASIS||ECONOMIC GROWTH||ECONOMIC DEVELOPMENT|
|DEFINITION||It is the rise in a country’s monetary growth over a period of time.||It refers to a country’s total improvement in quality of life, which involves economic growth.|
|CONCEPT||Narrower concept than economic development||Much broader concept that economic growth. ED = EG + Standard of living|
|TERM||It is a short-term process.||It is a long-term process.|
|SCOPE||It is regarded to be one-dimensional in character because it solely considers the income of the nation’s population.||It is a multi-faceted strategy that considers a country’s income as well as its quality of life.|
|APPLICABLE TO||Developed countries of the world.||The worlds underdeveloped or developing countries.|
|MEASUREMENT||Quantitative Terms i.e. Increases in real GDP.||Both Qualitative & Quantitative Terms i.e. HDI (Human Development Index), gender-related index, Human poverty index etc.|
|GOVERNMENT SUPPORT||It’s a self-contained process that may or may not necessitate government participation.||It necessitates government action since the government formulates all development objectives.|
|EFFECTS||Qualitative and Quantitative Impact on the economy. Ex., GDP, GNP||Brings a quantitative impact on the economy. Ex., HDI, per capita Income|
|PROCESS TENURE||In a certain period||Continuous process|
|FOCUS ON||Focuses on production of goods and services.||Focuses on distribution of resources.|
|POVERTY||Poverty and inequality may remain in economic growth||Achieving economic development is linked with end of poverty and inequality.|
We may conclude from the foregoing that Economic Growth is a subcategory of Economic Development. Economic development encompasses more than just economic growth. Economic development employs a variety of measures to assess an economy’s overall growth; nevertheless, economic growth is calculated using just particular measures such as the gross domestic product, personal income, and so on. Economic growth is sometimes compared with economic development, which is described as a rise in an economy’s or nation’s economic riches for the benefit of its citizens.
Economic development appears to be the ultimate winner when it comes to assessing a country’s development, but economic growth in industrialised nations gives simple and accurate development statistics. Each have their own set of problems and benefits, and they obviously appeal to distinct specific groups.
Economic development appeals to developing nations who recognise that it’ll be a protracted procedure. Developed countries are attracted to economic growth because they desire quick and accessible statistics on their country’s income gain. Both assess progress, but in various ways and through distinct media. It’s possible to say they’re both quite identical and very different at the same time.
Economic development cannot be assessed without also assessing economic growth, but growth does not have to be dependent on development. Aside from that, the economic calendar may be used to track both concurrently.
Economic growth is more relevant metric for assessing progress in developed countries and economic development is more relevant to measure progress and quality of life in developing countries. Economic growth, unlike economic development, is a self-sustaining phenomenon. However, economic development is the product of well-thought-out, goal-oriented actions. Economic growth is necessary but not enough to achieve economic development. Economic development may be quantified using the Human Development Index, which takes into account literacy rates and life expectancy as well as other factors that influence productivity and may contribute to economic growth.
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
If you are interested in participating in the same, do let me know.
The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.
If you would also like to contribute to my website, then do share your articles or poems at email@example.com
We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs.
We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge