Economic Development vs.

Economic
Growth

Dien Economics

EconomicGrowthisanarrowerconceptthaneconomicdevelopment.Itisan
increaseinacountrysreallevelofnationaloutputwhichcanbecausedbyan
increaseinthequalityofresources(byeducationetc.),increaseinthequantity
ofresources&improvementsintechnologyorinanotherwayanincreasein
thevalueofgoodsandservicesproducedbyeverysectoroftheeconomy.
EconomicGrowthcanbemeasuredbyanincreaseinacountrysGDP(gross
domesticproduct).
Economicdevelopmentisanormativeconcepti.e.itappliesinthecontextof
peoplessenseofmorality(rightandwrong,goodandbad).Thedenitionof
economicdevelopmentgivenbyMichaelTodaroisanincreaseinliving
standards,improvementinselfesteemneedsandfreedomfromoppressionas
wellasagreaterchoice.Themostaccuratemethodofmeasuringdevelopment
istheHumanDevelopmentIndexwhichtakesintoaccounttheliteracyrates&
lifeexpectancywhichaectproductivityandcouldleadtoEconomicGrowth.
Italsoleadstothecreationofmoreopportunitiesinthesectorsofeducation,
healthcare,employmentandtheconservationoftheenvironment.Itimpliesan
increaseinthepercapitaincomeofeverycitizen.
EconomicGrowthdoesnottakeintoaccountthesizeoftheinformaleconomy.
Theinformaleconomyisalsoknownastheblackeconomywhichis
unrecordedeconomicactivity.Developmentalleviatespeoplefromlow
standardsoflivingintoproperemploymentwithsuitableshelter.Economic
Growthdoesnottakeintoaccountthedepletionofnaturalresourceswhich
mightleadtopollution,congestion&disease.Developmenthoweveris
concernedwithsustainabilitywhichmeansmeetingtheneedsofthepresent
withoutcompromisingfutureneeds.Theseenvironmentaleectsarebecoming
moreofaproblemforGovernmentsnowthatthepressurehasincreasedon
themduetoGlobalwarming.
Economicgrowthisanecessarybutnotsucientconditionofeconomic
development.

Comparison chart
GDP
Compare Anything

Economic Development
Economic
Growth
Implications Economicdevelopmentimplies

Economicgrowthreferstoan

vs.

GNP

GO

anupwardmovementofthe
entiresocialsystemintermsof
income,savingsandinvestment
alongwithprogressivechanges
insocioeconomicstructureof
country(institutionaland
technologicalchanges).
Factors Developmentrelatestogrowthof
humancapitalindexes,a
decreaseininequalitygures,
andstructuralchangesthat
improvethegeneralpopulations
qualityoflife.
Measurement Qualitative.HDI(Human
DevelopmentIndex),gender
relatedindex(GDI),Human
povertyindex(HPI),infant
mortality,literacyrateetc.
Eect Bringsqualitativeand
quantitativechangesinthe
economy
Relevance Economicdevelopmentismore
relevanttomeasureprogressand
qualityoflifeindeveloping
nations.

Scope Concernedwithstructural
changesintheeconomy

increaseovertimeinacountry`s
realoutputofgoodsandservices
(GNP)orrealoutputpercapita
income.

Growthrelatestoagradual
increaseinoneofthe
componentsofGrossDomestic
Product:consumption,
governmentspending,
investment,netexports.
Quantitative.Increasesinreal
GDP.

Bringsquantitativechangesin
theeconomy

Economicgrowthisamore
relevantmetricforprogressin
developedcountries.Butits
widelyusedinallcountries
becausegrowthisanecessary
conditionfordevelopment.
Growthisconcernedwith
increaseintheeconomysoutput

Video Explaining the Dierences

TheSocialProgressImperative,whichreleasesaSocialProgressIndex,wascreatedout
oftheneedtotrackboththeeconomicandsocialopportunitiesofpeopleandcountries
aroundtheworld.IntheTEDTalkbelow,SPIsCEO,MichaelGreen,discussesthe
importanceoftrackingeconomicdevelopmentaswellaseconomicgrowth,andhow
GDPdollarsdonotnecessarilybuysocialprogress,suchasbasicneeds,happiness,and
opportunity.

Michael Green: What the Social Progress Index can reveal about your country

References
BusinessEconomicsbyDr.Ch.Mahender
Economics/Society:Markets,MeaningsandSocialStructurebyBruceG.Carruthers,SarahL.Babb
2000
SustainabilityinaChangingWorldYouTube

Related Comparisons

GrossDomesticProduct

NominalGDP vs Real

Monetary vs Fiscal

(GDP) vs GrossNational

GDP

Policy

Gross vs Net

Macroeconomics vs

Product(GNP)

ForeignDirect
Investment(FDI) vs

Microeconomics

ForeignPortfolio
Investment(FPI)

Comments: Economic Development vs Economic Growth

276Comments

Sortby Newest

Anonymous comments (7)

May4,2014,2:44pm

Addacomment...

verygood
37...156

SaaMuliNoiseMakeratKituiCountyJobSeeker'sCorner
Goodstuff.CongratsDiffenforbeingsuchagoodplayerinthefield
ofeconomics
LikeReplyMar8,20165:28am

December11,2013,1:38pm

Icannotexplainhowmuchilearnfromthis.Itwasreallyhelpfulfor
me.
Thankyouverymuch

MdArshadDhakaCollege

37...35

verysmartconcept
LikeReplyFeb11,201610:10pm

YeyeOlabisiFaturotiSalisPanAfricanUniversity
Hmm!Yourarticleiscoherentandexplicit.Itprovidesavivid
similaritiesanddifferencesbetweenecomomicgrowthand
economicdevelopment.AndIhaveaclearerperspectiveofthe
discourse.Thanks.
LikeReplyDec14,20158:57pm

KaramAngralStudyingatJammuUniversity
veryclear
LikeReplyNov27,20155:11am

HAwaeCaHAwaeStudyingatStudent

January8,2012,3:58am

thanksexactlywhatiwaslookingfor
186...111

December29,2011,1:19pm

thatswhatiwaslookingfor,thanksalot.countrylikeTanzaniaalot
ofgovernmentocialsandleadersareproudofEconomicgrowth
whilenothingtodowithdevelopmentofpeopletakingit
considerationcurrentoodswhichhappenedinDaresSalaamall
peopleleavinginslumareasaectedbadly,
41...94

thanks
LikeReplyNov22,201510:34pm

LidyaObyMoshiUniversityCollegeofCooperativeand
BusinessStudies
Ilikethearticlesandexplanation..Thankyou

March14,2014,5:49pm

Hmmmmmm....iluvit
141...65

LikeReplyNov20,20151:31am

AyiteyGideonGhanaInstituteofManagementandPublic
Administration(GIMPA)

December16,2013,10:21am

greatartile

Welldone...gudjob...:):)

LikeReplyNov4,201510:47pm

49...224

MikeJayStatisticianatCentralStatisticalOfficeCSO
awsomearticleanditisstraightonpoint,ihavebenefitedalot.
LikeReplyNov2,201512:28pm

SastoNepalWorksatSastonepal.Com
Itisreallyexcellentresoucesforeconomicsstudents.Thanksfor
sharingthisarticle.
LikeReply

1Oct31,20157:04pm

AjayiOluwaseunVictoriaOwner,CrafterandDesignerat
EMDEEDesigns
Excellentexplanation
LikeReplyOct28,201510:03am

DessalewKassaBahirDarUniversity
Agoodreference
LikeReplyOct27,20151:55am

MahlonEbipiriNigerDeltaUniversity,WilberforceIsland.
Thisgreatinhasbeenhelpfulltometanks
LikeReplyOct11,20151:43pm

WamakaSikweseMzuzu
allhelpful
LikeReplyOct7,201512:33am

WamakaSikweseMzuzu
allhelpful
LikeReplyOct7,201512:32am

EdMacalandagCityAdministratoratLGUTagbilaranCity
Veryeducational
LikeReplyAug3,20156:03pm

Load10morecomments

FacebookCommentsPlugin

December20,2011,1:14pm

GOODJOB.................................
122...140

AboutDien
HowtoCite
Login/Register
RequestaComparison
SubmitFeedback
Stayconnected

Allrightsreserved.
Termsofuse|Privacypolicy