Economic Growth Vs

Economic Development
Introduction to
Growth & Development
Key Study Area

➢ Introduction

➢ Economic Growth

➢ Economic Development

➢ Growth Vs Development

➢ Measurements of Economic Development

Introduction to
Growth & Development

Economic Economic
Growth Development

Quantitative Qualitative
Economic Growth

➢ It is an increased economic capacity to

produce goods & services, compared from
one period of time to another.

➢ The increase in the aggregate market value

of additional goods and services produced,
using economic concepts such as GDP and
GNP.
Economic Growth

Economic growth is a much narrower

concept when compared to Economic
Development.

It is all about Quantitative changes in the

Economy.
Measurements of Economic Growth
 Economic Development

➢ It refers to the overall development of the quality of life

in a nation which includes economic growth

➢ It is referred to as the quantitative and qualitative

changes in economy.

➢ Health, Literacy, Human capital, Environmental

sustainability etc.
Economic Development

It is the qualitative improvement in the life of

citizens of a country and is most appropriately
determined by the Human Development Index
(HDI).
 Economic Growth Economic Development
Definition
Increase in the monetary growth of a nation in a It refers to the overall development of the quality of
particular period life in a nation which includes economic growth

Span of Concept
It is a narrower concept than Economic It is a broader concept than Economic Growth
Development

Term
Short-term process Long-term process
Measurement
Quantitative Both Quantitative and Qualitative

Government Support
It is an automatic process that may or may not It requires intervention from the government as all
require intervention from the government the developmental policies are formed by the
government
Kind of changes expected
Quantitative changes Quantitative as well as qualitative changes
Examples
GDP, GNP HDI, Per capita Income, Industrial Development
Measurements of Economic
Development
Key Indicators
❖ Sustainable Development Goals (SDG)

❖ Human Development Index (HDI)

❖ UN Millennium Development Goals (MDGs)

❖ Inequality -Adjusted Human Development Index (IHDI)

❖ Gender Inequality Index (GII)

❖ Gross National Happiness (GNH)

❖ Green GDP
Human Development Index (HDI)
❖ In 1990 under the stewardship of Mahbub -ul-Haq &
Amartya Sen concept of HDI.
❖ Later United Nations Development Programme (UNDP)
started giving HDR every year.
❖ Indicators-
❖ Life Expectancy Index
❖ Educational Attainment Index
❖ Standard of Living Index

❖ In 2019 India’s Rank 129

 Sustainable Development Goals (SDGs)
The sustainable development goals (SDGs) are a new,
universal set of goals, adopted by the United Nations
General Assembly in 2015.

193 member countries, including India, got committed to

the 17 Sustainable Development Goals that require
efforts to end all forms of poverty, fight inequalities and
tackle climate change while ensuring that no one was left
behind.

NITI Aayog is the national body primarily responsible for

implementing the SDGs in India.
UN Millennium Development Goals (MDGs)

At United Nations Millennium Summit held in New York in September 2000, 8

international development goals agreed to be achieved by 192 UN Members and
23 International organisations by 2015. These goals are called Millennium
Development Goals (MDGs).
Conclusion

• Economic growth is the continuing increase in the volume of production in one

country. while economic development is not only quantitative but also qualitative
changes that lead to better meet their needs.

• Economic development is associated with the accumulation of capital. Under the

capital we mean permanent production goods that serve as a work tool in the
production of other goods.