FEDERAL UNIVERSITY OF OYE, EKITI.

NAME: JOSHUA DEBORAH PEACE

MATRIC NO: ELE/2021/1087

FACULTY: EDUCATION

DEPARTMENT: ENGLISH LANGUAGE AND EEDUCATION

LEVEL: 100

COURSE CODE: EDU 102

COURSE TITLE:

LECTURER IN CHARGE: DR. AYODEJI OLORUNFEMI OLAWOLE

ASSIGNMENT

CRITICALLY EXAMINE GROWTH AND DEVELOPMENT, DISCUSS FOR OR AGAINST VIS-A-VIS ITS
RELEVANCE AND NEED.

The terms ‘economic growth’ and ‘economic development’ sound similar. However, the two concepts
are different. While economic growth is a quantitative concept, economic development is a qualitative
concept.

What is Economic Growth?

Economic growth can be referred to as the increase that is witnessed in the monetary value of all the
goods and services produced in the economy during a time period. It is a type of quantitative measure
that reflects the potential increase in the number of business transactions taking place in the economy.
It can be measured in terms of the increase in the aggregate market value of additional goods and
services produced by using economic concepts such as GDP and GNP.

Economic growth is a narrow concept when compared to economic development.

What is Economic Development?

Economic development refers to the process by which the overall health, well-being, and academic level
of the general population of a nation improves. It also refers to the improved production volume due to
the advancements of technology.

It is the qualitative improvement in the life of the citizens of a country and is most appropriately
determined by the Human Development Index (HDI). The overall development of a country is based on
many parameters such as the creation of job opportunities, technological advancements, standard of
living, living conditions, per capita income, quality of life, improvement in self-esteem needs, GDP,
industrial and infrastructural development, etc.

Let us look into the most significant points of difference between economic growth and economic
development from the following table:

Economic Growth Economic Development

Definition

It refers to the increase in the monetary growth of a nation in a particular period. It refers to the
overall development of the quality of life in a nation, which includes economic growth.

Span of Concept

It is a narrower concept than that of economic development. It is a broader concept than that of
economic growth.

Scope

It is a uni-dimensional approach that deals with the economic growth of a nation. It is a multi-
dimensional approach that looks into the income as well as the quality of life of a nation.

Term

Short-term process Long-term process

Measurement
Quantitative Both quantitative and qualitative

Applicable to

Developed economies Developing economies

Government Support

It is an automatic process that may or may not require intervention from the government It
requires intervention from the government as all 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.

Growth and development are two interrelated concepts that are often used interchangeably. However,
they have different meanings and implications. Growth refers to an increase in physical size, weight, or
quantity, while development refers to the acquisition of skills, knowledge, and capabilities that lead to
improved functioning and well-being.

Proponents of growth and development argue that they are essential for personal, social, and economic
progress. They point out that growth and development are necessary for individuals to realize their full
potential, to contribute to their communities, and to achieve economic prosperity. They also argue that
growth and development are necessary for countries to compete in a globalized world and to reduce
poverty and inequality.

However, critics of growth and development argue that they can be unsustainable and harmful. They
point out that a focus on economic growth can lead to environmental degradation, resource depletion,
and climate change. They also argue that a focus on individual development can lead to social inequality,
as those who have access to better education and opportunities are more likely to succeed and thrive.

Moreover, the narrow focus on growth and development can lead to neglect of other important values
and goals, such as human rights, social justice, and environmental sustainability. For example, a focus on
economic growth can lead to policies that prioritize corporate profits over worker rights, environmental
protection, and public health.

Economic growth is the increase of national income or national output, regarding economic goods
and products compared to one form another time. On the other hand, economic development means
long term economic growth, such as a country having an increased rate of income. Healthcare, gender
equality, can be addressed in developed countries or the developed economy.

Economic growth measures an increase in Real GDP (real output). GDP is a measure of the national
income / national output and national expenditure. It basically measures the total volume of goods and
services produced in an economy.

Development looks at a wider range of statistics than just GDP per capita. Development is concerned
with how people are actually affected. It looks at their actual living standards and the freedom they have
to enjoy a good standard of living.

* Difference between economic growth and economic development

Economic growth consists of various processes in per-capita income and national income increasing
process. Apart from economic growth, economic development is a much wider concept that includes
social, political, cultural changes and overall development in literature, gender and other phenomena.

Several factors are related to economic growth such as gradual positive changes in GDP, product
consumption, spending investment of the government and net exports. On the other hand, economic
development is related to the growth of human health, increases inequality and equity, and quality of
life along with purchasing power parity and so on.

Economic growth can be measured by several quantitative factors for example GDP, PPP, whereas
development can be measured by the HDI, HPI, literacy, infant mortality etc.

* Factors Affecting Economic Development and Growth

Economists generally agree that economic development and growth are influenced by four factors:
human resources, physical capital, natural resources and technology. Highly developed countries have
governments that focus on these areas. Less-developed countries, even those with high amounts of
natural resources, will lag behind when they fail to promote research in technology and improve the
skills and education of their workers.

i. The Impact of Human Resources

The skills, education and training of the labor force have a direct effect on the growth of an economy. A
skilled, well-trained workforce is more productive and will produce a high-quality output that adds
efficiency to an economy.

A shortage of skilled labor can be a deterrent to economic growth. An under-utilized, illiterate and
unskilled workforce will become a drag on an economy and may possibly lead to higher unemployment.
ii. Investment in Physical Capital

Improvements and increased investment in physical capital – such as roadways, machinery and factories
– will reduce the cost and increase the efficiency of economic output. Factories and equipment that are
modern and well-maintained are more productive than physical labor. Higher productivity leads to
increased output.

Labor becomes more productive as the ratio of capital expenditures per worker increases. An
improvement in labor productivity increases the growth rate of the economy.

iii. Quantity and Availability of Natural Resources

The quantity and availability of natural resources affect the rate of economic growth. The discovery of
more natural resources, such as oil or mineral deposits, will give a boost to the economy by increasing a
country's production capacity.

The effectiveness of a county at utilizing and exploiting its natural resources is a function of the skills of
the labor force, type of technology and the availability of capital. Skilled and educated workers are able
to use these natural resource to spur the growth of the economy.

iv. Improvements in Technology

Improvements in technology have a high impact on economic growth. As the scientific community
makes more discoveries, managers find ways to apply these innovations as more sophisticated
production techniques.

The application of better technology means the same amount of labor will be more productive, and
economic growth will advance at a lower cost.

Countries that recognize the importance of the four factors that affect economic growth will have higher
growth rates and improved standards of living for their people. Technological innovation and more
education for workers will improve economic output which lead to a better living environment for
everyone. Increases in labor productivity are much easier to achieve when investments are made on
better equipment that require less physical work from the labor force.

* Reasons Why Development Is Important For A Country

Developing countries are defined as being poorer nations, often with economies based on agriculture,
that seek to become more advanced economically and socially. But if most of the world is developing
and so few countries are developed, why should countries strive for prosperity? What is to be gained by
becoming developed, and why is it important for a nation?

i. It Lifts People Out of Poverty

The first reason why development is important for a country is that it lifts people out of poverty.
689 million people around the world live in extreme poverty, defined as living on less than 1.90 USD a
day. As countries develop, their economies grow and living standards rise. This reduces the rate of
poverty and allows more people to provide for themselves and their families and to live in dignity.

A life in poverty is hard. People living in poverty often lack education, access to quality healthcare, are
discriminated against and lack access to decent housing. Millions of people around the world are in
what’s known as the ‘poverty trap’ – unable to escape their circumstances. Development is vital for a
country to break the cycle of poverty for its people and to lift large parts of the population out of
destitution.

Global development is key to reducing poverty around the world. It is crucial for many countries that
they develop or else large parts of their populations will continue to live in dire conditions.

ii. Development Improves Public Health.

A second reason why development is important for a country is because it improves public health.

As a country develops, its healthcare system gets better. This is because there is more government
revenue to invest in healthcare. Increasing access to quality healthcare is crucial not only for the
population’s quality of life but also for the continued economic development of the country.

Health and poverty are closely linked. People suffering ill health are often removed from the workforce.
Those who must care for sick relatives also often cannot work. Developing a country so that it’s
healthcare can improve has a definite impact on poverty reduction.

Another way that a country developing is beneficial in relation to healthcare is that as a population
becomes more wealth, they are better able to live healthier lives. This, combined with the increased
government spending on healthcare, makes significant improvements to a countries ability to meet the
needs of its population.

It has been shown that development and improved public health are closely linked, and this is why
development is vital for many countries.

iii. Development Means Better Economic Opportunities

A third reason why development is crucial for countries is because it improves the economic
opportunities of people.

The more a country develops the more jobs are created. This gives more people access to quality, stable
work and to be able to provide for themselves and their families. Better economic opportunities have
been shown to reduce violence and crime, as well as reduce the likelihood of conflict. Better jobs are
also related to improved quality of life for people.
As well as creating better jobs, development is important for a country because it improves business and
trade. As countries develop more international companies move in and trade with other countries
grows. This further improves the countries economy and also further increases the range of good jobs
on offer.

Everybody wants to be able to meet their full potential. The increase in economic opportunities that
development brings to a country shows how vital it can be.

iv. It Increases Access To Quality Education

Another reason why development is important for countries is because it improves the education
system.

Countries that are more developed have better education systems. This is because education costs
money and development increases the governments revenue. This means they have more resources to
spend on education. The link between improved development and better education is a major reason
why it’s vital for almost all countries.

Every child has the right to access quality education. Poorer countries often fail to meet the education
needs of their young people. Increased development would improve the education systems of many
poorer nations. A more educated population also improves the economic position of a country as people
are able to move into more highly skilled jobs and create more innovative businesses.

As many countries develop their education systems will improve. This will in-turn fuel further prosperity.
This is why development is so important.

v. It Reduces Child Mortality

Child mortality is one of the key indicators of a country’s prosperity. Development is vital as it reduces
the number of children who die.

Child mortality – defined as the number of children who die before the age of five, always falls as a
country develops. This is because development allows for improved healthcare, better access to specific
maternity care, better nutrition and improved hygiene and sanitation. All of these aspects are vital in a
child’s early year and improving them increases the chance of a child’s survival.

Reducing child mortality is not only morally right, but it also improves a countries economy. As child
mortality drops women have less children. This allows them to participate more fully in the workforce.
Less children also gives families increased disposable income and means they rely less on healthcare
services – reducing the number of people dependent on the healthcare system overall.
Development is critical for countries because it allows them to reduce their child mortality rate. This is a
major reason why it is important for a nation.

vi. It Means Improved Infrastructure

Increasing development is vital for many nations because it allows them to improve their infrastructure.

Better infrastructure helps a country immensely. Improving roads, railways, airports, communications
and utilities makes a country more efficient. It allows people to move and send information more easily,
as well as transport goods and provide services more widely. Better infrastructure improves a countries
economy, which in-turn allows countries to spend more on better infrastructure. This economic
feedback-loop is a major reason why development is so important for a nation.

Infrastructure is also key for a country’s connection to the wider world. It increases international trade
and also makes a country more appealing to external investors. As a country develops it should focus on
building quality and lasting infrastructure. Developed countries have shown the importance of having
good infrastructure and how it is key to achieving prosperity.

vii. It Reduces Inequality

Developed nations are less unequal. This is another reason why development is important for a country.

All of the most unequal countries in the world are in the developing world. In comparison, all of the least
unequal countries are among the most developed. As countries become more prosperous, inequality
reduces. This is a major benefit of development and shows how vital it is for all countries.

Inequality is a major issue for a nation. It breads resentment and instability, is a root cause of crime and
armed violence and reduces the economic growth of a country. High inequality is also a moral failing for
a country and shows its inability to meet the needs of all its citizens.

Development is hugely important for many poorer countries because it will reduce inequality and make
them fairer places for all the population.

viii. It Creates A Better Quality of Life

A final reason why development is important for a country is because it creates a better quality of life
for people.

People in developed countries are more likely to live longer and happier lives. They are also generally
more economically productive, hold better jobs, live in better quality housing and have access to better
education and healthcare. All these factors contribute to a better standard of living for people in
developed countries. This is one of the best reasons why development is important for a country.

As countries become more developed, they are better able to meet the needs of their citizens. They are
less likely to be affected by crime, armed violence or pollical instability. They can weather economic
downturns better and create more dynamic economies. Developed countries are also more likely to be
democracies – allowing their citizens to participate in the political process and ensure inclusive political
systems.

All countries strive for development – many do it to offer a better quality of life for their people. This is
why development is vital for every country in the world.

ix. Development Decreases Conflict

Another reason why development is important for a nation is because it reduces conflict and armed
violence.

As a country develops crime, conflict and violence decreases. As people have a better standard of living
and more economic opportunities, they are less likely to resort to violence and criminal activity. Many
studies show that increased prosperity and a reduction in violence are closely correlated and this is why
development is so important.

Citizens in more developed countries have a higher stake in the status-que and are less likely to revolt
against the current system. Less developed countries see more violent protests, insurrections, coup
attempts and armed groups. Factors like these can further fuel economic disruption and reduce a
countries development.

It is important that nations develop because as they do they become more stable. This in-turn increases
investment, business confidence, trade and the overall prosperity of a country.

x. Development Increases A Countries Global Standing

A further reason why development is important for countries is because it increases their global
influence.

Richer countries have more power in the world. They have greater influence on world affairs, have a
larger presence in international diplomacy and build alliances with other countries easier. More
developed countries are also interfered with less and better able to stand-up for their own interests.

Development is crucial for a nation because it increases it’s standing in the world. It means they are
better able to build relationships with other influential countries. More developed countries are able to
engage more with international organizations, such as the United Nations, African Union and ASEAN.
They are also less dependent on outside assistance, such as international aid or financial bailouts.
* Developed Countries Are Better Defended

Development is key to a countries defence. This is a key reason why it is important for many countries.

All countries face threats. There are other nations that wish to destabilise them, subjugate them or take
parts of their territory. Throughout history every state has faced the threat of attack at some-point.
Development is vital because it gives a nation the resources it needs to defend itself.

Developed countries are able to have larger and better equipped armies. They are also able to form
alliances with other rich nations and are integrated better into the global economic system. All these
factors make them harder to attack and deters other countries from interfering in their affairs.

Many of the countries with the largest armies in the world are among the most developed. Countries
with the most advanced military technology also rank among the world’s most prosperous. Both of
these factors show how important development is for a countries defence.