Question

Answer the following questions

Explain the concept of economic development.

Answer 1

Economic development refers to an overall improvement in the standard of living and welfare of the people of an economy over a period of time. It, besides the rate of growth of GDP, also includes an improvement in various other factors as well as such as education, health, employment, etc. Thus, it takes into account not just the economic indicators but also non-economic indicators as well. In this regard we can say that economic development implies an overall change in the socio-economic structure of an economy. As it involves a large degree of changes in the economy and the society at large, it requires extensive planning and efforts.