(Affiliated to Mahatma Gandhi Kashi Vidyapeeth)

Subject – ECONOMICS
Class – B.A
Year – 3rd Year

Paper – 1st (Economics of Less Developed Countries)

Topic – Economic Growth and Economic Development

Content Creator – D.R Niranjan Kumar Singh

Associate Professor & Head.
Department of Economics
Jagatpur P.G College,
Varanasi- 221302
Email- drniranjankumarsingh19@gmail.com
Mob. - 995651551
 ECONOMIC GROWTH AND ECONOMIC DEVELOPMENT
(CONCEPTS AND DIFFERENCES)

The terms growth and development are frequently used but at times
proper distinction between two is not made. it is, therefore,
desirable to have a clear and correct meaning of both the terms.
Growth means quantitative change and development means
qualitative change. we generally talk about the growth of population
or growth of national / per capita income. It simply refers to
quantitative increase. In this context we never say development of
national income or population, we talk about the deployment pf an
economy, and industry or any firm. This refers other changes in the
infrastructure, the technology of production and so on.
Moreover, economic growth includes the expansion while economic
development not merely includes expansion but also structural
changes as well as improvement in the productive capacity. as Kindle
Berger points out that economic growth means more output and
changes in the technical and institutional agreements by which it
(output) is produced.
In the process of economics development not only national output
increases but several other changes take place simultaneously. These
changes may be in factor supplies as well as changes in demand of
goods and services. obviously, economics growth is defined as an
increase in aggregate product either total or per capita, without
references to change in the structure of the economy. But in
economic development growth along is not included but economic,
social and cultural changes occur in the development process.
Growth and Development go tighter one cannot exist over the long
period without another. Clearly, in the developing economies the
development is important as quantitative increase may not be
sustained over a long period because the increase in the output
requires basic and fundamental change in the structure of an
economic unit. but the development without growth meaningless.
because the qualitative changes must be followed by quantitative
changes. otherwise the purpose of development will be defeated as
Kindle Burger has explained that ‘it is virtually impossible to
contemplate development without growth because change in
function requires change in size ‘In the economies where such
qualitative changes have taken place (like the developed economies)
the problem is of growth. thus, growth and development are
interrelated but they have separate connotation.

References –
Higgins, B: Economic Development Central Book Depot,
Allahabad
Lewis, W.A: Theory of Economics, Growth Allen and Unwin,
London 1955
Kindle Berger, C.P: Economic Development, Mac Graw Hill Book
Company, New York, 1965