Question

'Development is the development of man, it is human being centered'.
Economic development is economic growth plus positive changes in the factors or indicators of well being of the masses. Explain economic growth and examine or discuss some of the factors or indicators of which positive changes will bring about economic growth and lead to economic development.

Hints- examples of the factors or indicators include: physical capital per worker, human capital per worker, natural resources per worker, technological knowledge, savings and investment, diminishing returns and catch-up-effect, free trade and investment from abroad, quality of education and teachers per student, access to education, access to health care and quality of health care, doctors/medical personnel per citizen, quality nutrition and child malnutrition, access to clean drinking water, leisure, access to electricity, available paved roads and other infrastructures, bureaucratic corruption and integrity of public official, property rights and political stability, enforcement of contracts, access to television, computers, telephones, internet, infant mortality rates, maternal mortality rates, population growth, research and development.

Answer 1

Economic growth is an increase in the amount of goods and services produced over a period of time. Economic growth is a positive change in real output or GDP.

But economic development is a broader concept which arises with the advancement of technology, Improving HDI index which include life expectancy, education and per capita income.

Both the changes can be initiated only by some positive indicators.

If the per capita income increase, it tells about the economy to be healthy. It gives a good impression of high purchasing power parity. Indicators like inequality will tell that the growing per capita income has helped the economy to boom and hence the inequality has decreased.

Indicator like Increasing life expectancy, will give a good impression on the healthcare system of the country. It will say that the healthcare is strong hence the life expectancy is high. This means the productivity of a person will increase as he can live longer now. This will not only improve the economic development but also the economic growth by increasing the GDP.

Same way a good education system will tell that the country will have a good innovation and technology in future. This will further have a positive impact on economic growth and development.