Question

Development can be measured in many ways, starting with economic growth. What is the biggest concern for how development might be worsened as economic growth improves? Using an empirical example and/or theoretical critique, state the nature of the concern and how and why this concern might be caused by economic growth.

Essay Question. Must begin with thesis. please identify all relevant concepts, terms and discuss critically all other positions against and aswell as in favor.

Answer 1

Economic growth can help in representing how well developed the country is.

Mainly, GDP of the country helps in measuring the economic growth.

Higher the economic growth, better the standard of living a country has. Economic growth helps to develop new technologies, infrastructure and can create decent jobs in the economy.

However, it is only one side of the coin.

There are many challenges that comes along with economic progress of a nation.

• There can be Energy and Environmental Security issues as up to a certain point economic growth worsens the environment.
• Higher output will lead to increased pollution in the environment and congestion which can reduce living standards e.g. increase in respiratory problems, time wasted in long traffic jams, overfishing, deforestation and loss of natural habitat.
• These externalities reduce social welfare and can lead to market failure.
• There is also a risk of inflation if demand for goods increases at a high rate.
• Competing in a New Era of Globalization can impact domestic producers of the country and can lead to global crisis.
• There can be an increase in the population growth which may increase poverty ,conflicts and income inequality.

As we can see from the graph that as world GDP is rising, environmental cost (CO2 EMISSIONS) as well as population is growing.

Hence, economic growth comes with both pros and cons.