Question

The definitions of economic development were different from each other in 1950s, 1970s and 1990s. Compare and contrast the definitions of these three time periods.

Answer 1

In 1950s economic development was defined as the capacity of a nation to generate and maintain 5% or more annual increase in Gross National Product. A new definition was developed when most of the developing nations did grow by the prescribed growth rates, but most of the population still remained poor and living conditions remained unchanged. Thus a new definition was coined in 1970s

In 1970, economic development was defined as a reduction of poverty, unemployment and inequality within a growing economy. This definition focused on redistribution of resources and growth, putting more emphasis on non-economic factors which are important to be accompanied along with growth.

In 1990s, the World Bank broadened the definition further and emphasized that economic development should improve the quality of life, by providing access to better education, equality of opportunity, greater individual freedom. Amartya sen emphasized that poverty cannot be measured conventionally but that it matters how a person is and can be if given the right opportunities.

Thus the definition continued to grow much more in scope when in 1950s growth was considered parallel to development, higher growth rate implied that development was also high, which was corrected and in 1970, social aspects were taken into consideration that development and growth should increase income equality. While in 1990, it focused on the qualitative aspects of life which should ultimately lead to economic development as everyone is given equal opportunities.