Question

Please explain throughly ! thank you so much

1. What do we mean by economic growth? Why do economies grow? In principle, what are the main implications of such growth for the environment?

Answer 1

When the wealth of a nation increases overtime with the economy's increase in the production of goods and services from one period of time to another, it is called ars economic growth. Usually the increase in a country's GDP or GNP indicate the expansion of an economy which occurs due to the increased market value of the country's goods and services during a particular period of time. Economic growth is very important for a healthy economy which impacts on the national income and employment level positively raising the standard of living of a country's population. As the economy of a country grows, economic development of a country also soars high as the government of the country can increase their funding for public works with the increase in national income which brings more taxes.

When the resources of a country is harnessed and utilised in the best possible manner by applying advanced and scientific tools and techniques, an economy grows as the country's productivity in terms of goods and services increases. Countries who employs the most skilled persons for various developmental purposes which help in maximising the utility of their natural resources and devise substitutes for dwindling resources, are the fastest growing economies as they are self reliant on their own resources have low rate of unemployment and higher income rates. Besides countries who have open economies carry out trade with foreign countries by exporting the products on which they specialise. As growing economies indicate the healthy sign of a country's wealth, it is very important for an economy to grow.

Economic growth is an integral part of a country's development. A country can not prosper and become developed if it does not utilise its resources in a sustainable way. While economic growth is very important for a nation to become progressive, it has some negative implications on the environment. The ever expanding population of a country demand more resources which leads to exploitation of natural resources leading to grave repercussion for the future generation. Reckless exploitation of natural resources for the growth of economy leads to the loss of ecosystem balance leading to many environmental issues like global warming, pollution, deforestation, extinction of many species etc. The negative effects of economic growth takes a toll on a country's GDP as GDP does not take account the spending on environmental protection, if a country does not consider the issues of environment seriously, it will have to loss more than its economic gain. Changing climatic condition with global warming is one of the important issue that needs to be considered as many islands submerged under sea due ti increasing temperature of the globe and melting glaciers, many species extinct from the world which helped in balancing the ecosystem. Changing world climate and pollution has led to the reduction in food production, natural resources etc in many countries which force them to import these things from other countries. Thus importing products to sustain its population is taking a toll on the economy as it is spending more than earning. So it is very important for a country not to ignore the basic facts of environmental issues that would erupt with the growth of economy if not plan accordingly.