The presentation describes the debate of growth and development with the help of literature and how the concept of development emerges from economic growth considering the old and modern views of economic growth and development.

1. Economic Growth and
Development
Dr. Suraj Sharma*
*Assistant Professor, Department of Economics, S.M. College, Chandausi, Uttar
Pradesh – 244412 (Affiliated to M.J.P. Rohilkhand University, Bareilly, Uttar Pradesh,
India). ORCID: 0000-0002-4003-5617
Email: surajsharma1903@gmail.com; Mob. +919795154384.

2. Feudalism to Capitalism
Physiocrats created “the first strictly scientific
system of economics”) as Natural Law
• E.g. Francois Quesnay, Louis Paul Abeille,
A.R.J. Turgot
Francois Quesnay: Wealth of nations was
derived solely from the value of agriculture.
• Tableau économique (1758): Agricultural
surpluses: economic movers
Louis Paul Abeille (1760s): Views on Laissez
faire (government intervention in the grain
trade was self-defeating)

3. Continued…
 Mercantilists
• E.g. Antonio Serra, Sir Thomas Mun, Sir Josiah Child, Philipp
Von Hornick, Johannes Nejnrich Gottleb, Joachim George
Daries.
 Antonio Serra (Italian) opines
• Preferring industry to agriculture.
• More diligent, hard-working and eager to build up the trade to
develop foreign trade and thereby get more gold and silver.
 Sir Thomas Mun (English) opines (“England’s Treasure by
Foreign Trade” in 1620s)
• Regulate the foreign trade of the country to secure a
favourable balance of trade.
• Did not want limitless accumulation of wealth because it
would lead to high prices and adverse balance of trade.
• No Laissez faire

4. Continued…
 Classical (e.g. Adam Smith) “Wealth of Nations” 1776
 Capitalism in its real form
• Free Trade Freedom of actions*
• Division of Labour
(Invisible hands)
• Specialization
• Laissez Faire
 *A.K. Sen “Process of expanding the real freedom that
people enjoy”.

5. Paradigm change
United Nations (specially UNDP)
Sustainable Development
Human Dignity Equality
Equity
• Human Development Index
 Care about people and their capabilities
 Can be used to compare two or more countries on
different dimensions (standard of living, health &
education)

6. Continued…
World Bank (Focus on)
1. Exclusion
2. Poverty
3. Environmental damage
Like women
Rural poor
Indigenous people (Based on historical ties)

7. Nature of Development economics
Traditional Economics (Allocation of Scarce
Resources)
Political Economy (Role of Power in economic
decisions making)
Development Economics (Living of Standard,
economic, cultural and political requirement)

8. Measurement of economic growth and
development
Why development???
 Industrial Revolution (18th Century) started from UK
and spread over France, Germany & later in USSR,
USA and Japan.
 Some countries in Asia, Africa and Latin America
could not avail the benefits of this and remained
poor.
 The Result was international divide as North and
South.
 Situations changed after World War II and end of
Imperialism.

9. Continued…
World level inequality in income level
Conard Lorenz (1905): relationship between
the population groups and their respective
shares.
Corrado Gini (1912): Gini coefficient (0 to 1):
degree of inequality “area between the
diagonal and the Lorenz Curve as compared to
the total (area under the line of equality).”

10. Economic Development or Economic
Growth???????
• Qualitative vs Quantitative
• Development includes social, cultural,
political, moral and economic factors which
contribute to material progress.
• Measurement of economic development
• Traditional: Growth oriented
• Modern: Starts with United Nations Research
Institute on Social Development (UNRISD) in
1970

11. • "Social Development Index" was constructed.
Originally, 73 indicators, later only 16 core indicators
(9 social and 7 economic indicators) were selected.
• Basic need approach or quality of life
• Health Standard
• Education Level
• Food Availability
• Water Supply
• Water Drainage
• Shelter And Residence
Thank you