Is economic growth interdependent with development? how? explain..?

Question

compare and contrast the two asked words.....do not just define each of them...thanks..!!!!

Answer 1

There are cases then economic growth may be achieved through development - but sometimes it can go without development. Development provides great potential for growth - because same resources may be used more efficiently.

Answer 2

Yes, Economic growth and Economic development are interdependent. Without economic growth very little economic development can occur. Without sufficient economic development, economic growth cannot be sustained. Economic growth is the increase in value of the goods and services produced by an economy. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Growth is usually calculated in real terms, i.e. inflation-adjusted terms, in order to net out the effect of inflation on the price of the goods and services produced. In economics, "economic growth" or "economic growth theory" typically refers to growth of potential output, i.e., production at "full employment," which is caused by growth in aggregate demand or observed output. As an area of study, economic growth is generally distinguished from development economics. The former is primarily the study of how rich countries can advance their economies. The latter is the study of how poor countries can catch up with rich ones.

To put in a different way, Economic development is the development of economic wealth of countries or regions for the well-being of their inhabitants. From a policy perspective, economic development can be defined as efforts that seek to improve the economic well-being and quality of life for a community by creating and/or retaining jobs and supporting or growing incomes and the tax base. There are significant differences between economic growth and economic development. The term "economic growth" refers to the increase (or growth) of a specific measure such as real national income, gross domestic product, or per capita income. National income or product is commonly expressed in terms of a measure of the aggregate value-added output of the domestic economy called gross domestic product (GDP). When the GDP of a nation rises economists refer to it as economic growth.

The term "economic development," on the other hand, implies much more. It typically refers to improvements in a variety of indicators such as literacy rates, life expectancy, and poverty rates. GDP is a specific measure of economic welfare that does not take into account important aspects such as leisure time, environmental quality, freedom, or social justice. Economic growth of any specific measure is not a sufficient definition of economic development.

Among other things, the contemporary social scientific study of economic development encompasses broad theories of the causes of industrial-economic modernization plus organizational and related aspects of enterprise development in modern societies. It embraces sociological-type research relating to business organization and enterprise development from a historical and comparative perspective; specific processes of the evolution (growth, modernization) of markets and management-employee relations; and culturally related cross-national similarities and differences in patterns of industrial organization in contemporary Western societies. There is an ageing debate about whether economic growth or economic development should be pursued. Even to analysts that do not explicitly subscribe to the debate, there is always that underline unconsciousness to their analysis. Before I proceed, let me quickly define the parameters of this article by stating what I mean by economic growth and economic development.

Economic growth is the increase in the value of goods and services produced by the economy, generally referred to as the increase in Gross Domestic Product (GDP). When the GDP of a nation rises, economists refer to it as economic growth. For instance, in the last year, the Nigerian economy was reported to have grown by 5.9 per cent. Before defining economic development, let me introduce the concept of per capita income. Per capita income is total GDP divided by population. The interesting thing about per capita income is that it enables analysts to deduct how the GDP affects the approximate standard of living of the average individual in the economy.

Economic development can be defined as measures that addresses the improvement in the economic well being and quality of life of a set of people. So, it implies improvements in a variety of indicators such as literacy rates, life expectancy, and poverty rates. Many development economists will add more to the list. This debate or confusion should not have arisen in the first place except that it is possible to have economic growth and not have economic development. And per capita income does not provide any information relevant to the distribution of income in the country, the level of literacy, and whether housing conditions are up to standard or not. And for something that has increasingly become important to development analysts, it does not give an indication of negative externalities from environmental damage consequent to economic growth. Given these limitations, development analysts tend to concentrate on the different areas of development. On this basis, they apply poverty alleviation strategies and different kinds of interventions to bring about some measure of development such as National Poverty Eradication Programme (NAPEP). The aim of all these development interventions is an attempt to develop through special focus and programmes. There is also the Millennium Development Goals (MDGs), which is to concentrate governments’, and especially expenditure on measures that will improve the lives of people in developing countries by addressing the indicators that depicts the MDGs. While all these strategies are not bad in themselves, the proponents of these strategies and interventions help accentuate the seeming difference between economic growth and development. Economic growth of any specific measure is not a sufficient definition of economic development but there cannot be economic development without economic growth. Development occurs with the reduction and elimination of poverty, inequality, and unemployment within a growing economy. The emphasis is "within a growing economy". In essence, whether economic growth will lead to development depends on the drivers of the economic growth.

We must pursue economic growth, and pursue it with all the resources we can muster.