DIFFERENCE BETWEEN ECONOMIC GROWTH AND

ECONOMIC DEVELOPMENT

1. DEFINITION
ECO : DEVELOPMENT

The crux of economic development is to raise income level but main

importance has been given to man by considering improvement for
humans

ECO : GROWTH

The term economic growth is only concerned with raising income level.

2. NATURE IN ECONOMIC LITERATURE

ECO. DEVELOPMENT

Economic development is the key issue under modern economic literature.

According to this approach "take care of poverty and growth would take
care of itself

ECO. GROWTH

Economic growth is the key issue under traditional economics. This

approach says: "take care of growth and poverty would eliminate
automatically

3. SCOPE
ECO. DEVELOPMENT

Economic development has a wider scope because it does not only

discusses income but also discuss society, economy and institutions

ECO. GROWTH

Economic growth has a narrow scope because it is only concerned with

 income changes.

4. MEASUREMENT

ECO. DEVELOPMENT
In case of economic development the key point for measurement is to
decide whether poverty has reduced or not and if quality of life has
improved? Development can only be felt and it can't be measured
numerically

ECO. GROWTH

Economic growth is measured only by comparing income levels of different

years. Moreover economic growth can be measure numerically

5. DIFFERENCE OF APPROACHES
ECO. DEVELOPMENT

Economic development is said to be qualitative approach

ECO. GROWTH

Economic growth is said to be quantitative approach

6. VARY FROM COUNTRY TO COUNTRY

ECO. DEVELOPMENT

Economic Development is basically the problem of developing countries.

ECO. GROWTH

Economic growth is the problem of developed countries.

 7. IMPORTANCE
ECO. DEVELOPMENT

Concept of economic development is more important because it discusses

a country in wider sense Economic development is the final destination for
a country.

ECO. GROWTH

Concept of economic growth is less important because it only discusses

income of a country and it is only an intermediary phase of economic
development

8. THE PERIODS
ECO. DEVELOPMENT

Economic Development is a long term process, because it takes years to

change social economic and institutional setups

ECO. GROWTH

Economic growth is a short term process, because we can measure

income changes yearly

9. SOCIAL CHANGES
ECO. DEVELOPMENT

Social changes appear in case of economic development

Labour mobility

Availability of food

Health

Education

Decrease in growth of population

Economic development has given importance to man and it tries to remove

poverty and provides basic needs.
ECO. GROWTH
There might be no social changes in case of economic growth. Economic
growth ignores human beings and it is only concerned with income level

10. POLITICAL CHANGES

ECO. DEVELOPMENT

Economic Development leads to political stability

ECO. GROWTH

Economic growth does not ensure political stability

11. INSTITUTIONAL CHANGES
ECO. DEVELOPMENT

Economic Development ensure strong and effective institutions.

ECO. GROWTH

Economic growth does not leads to institutional revolution

12. DEPENDENCE ON OTHERS
ECO. DEVELOPMENT

Incase of economic development our dependence on other countries

reduces and country adopts the self reliance policy

ECO. GROWTH

Economic growth does not lead ensure the freedom from the on other
13. ECONOMIC APPLICATION
ECO. DEVELOPMENT

Economic development emphasizes on the balanced growth of economy.

ECO. GROWTH
Economic growth just checks the statistical upward movement of
income.
 14. ECONOMIC WELFARE
ECO. DEVELOPMENT

Economic Development explain the nature of country's GNP that should be

in favour of mankind

ECO. GROWTH

Economic growth doesn't cleanly mention the nature of N.I. It just checks
its growth. May be country is producing harmful goods like, opium, wine,
arms etc So growth of an economy may not bethe welfare

15. PRACTICAL SIGNIFICANCE

ECO. DEVELOPMENT

Comparing 1990's and 1960's. Pakistan is a more developed country as

now we have more roads' factories schools, hospitals etc.

ECO. GROWTH

In 1960's growth rate remained heighten as compared to 1990's when we

had limited infrastructure.