Question

State with reasons whether you agree or not.

The concepts of economic development and economic growth are same.

Answer 1

No, we do not agree with the given statement. Economic development and economic growth are two different concepts. Economic growth of a nation is measured in terms of rate of growth of GDP over a period of time. In other words, economic growth indicates a rise in the production of goods and services in an economy over a period of time. On the other hand, economic development, besides the rate of growth of GDP also includes an improvement in various other factors as well such as education, health, employment, etc. that enhance the overall standard of living and welfare of the nation. Economic development is infact a much wider concept than economic growth. While economic development has a qualitative dimension, economic growth has only a quantitative dimension to it. In other words, unlike ‘economic development’ which focuses on growth as well as qualitative attributes like employment, infrastructure and social activities, ‘economic growth’ only emphasizes on the quantity, numbers and size.