Difference Between Economic Growth and Economic Development Essay

frugal Growth is a narrower concept than stinting development.It is an maturation in a countrys real level of national output which set up be caused by an increase in the quality of resources (by education etc.), increase in the quantity of resources & profits in technology or in some other way an increase in the value of goods and services produced by any sector of the delivery. Economic Growth can be measured by an increase in a countrys GDP (gross domestic product). Economic development is a normative concept i.e. it applies in the place setting of peoples sense of morality (right and wrong, good and bad). The definition of scotch development given by Michael Todaro is an increase in living standards, improvement in self-esteem needs and freedom from oppression as swell as a greater choice.The most accurate method of metre development is the Human Development Index which takes into card the literacy rates & look expectancy which affect productivity and could lead to Economic Growth. It also leads to the foundation garment of more opportunities in the sectors of education, healthcare, employment and the conservation of the environment.It implies an increase in the per capita income of every(prenominal) citizen. Economic Growth does not take into account the size of the informal economy.The informal economy is also k directn as the black economy which is unrecorded economic activity. Development alleviates people from low standards of living into correct employment with suitable shelter. Economic Growth does not take into account the depletion of natural resources which might lead to pollution, congestion & disease. Development however is pertain with sustainability which means meeting the needs of the present without compromising future needs. These environmental effects are becoming more of a problem for Governments now that the pressure has increased on them due to Global warming. Economic harvest-tide is a necessary but not sufficient c ondition of economic development.