Definition and differentiation of economic growth and economic development.

2. Development
• Development is a sustained effort.
• Development is a long process
involving changes and requiring
effort.
- there is no such thing as "instant
development."

3. • Economic growth and economic development
are often used interchangeably. However,
there are two distinctions between two
concepts.
ECONOMIC GROWTH AND
ECONOMIC DEVELOPMENT

4. • Economic growth means increase in output or
production.
• Economic development means both more
output or production and changes in the
technical and institutional arrangements by
which factors of production are produced and
distributed.
ECONOMIC GROWTH AND
ECONOMIC DEVELOPMENT

5. • Growth in a human being means the increase
in weight and height of the individual. These
are purely physical in nature like increases in
weight from 5 kilos to 50 kilos or increases in
height from 91 centimeters to 191
centimeters.
GROWTH

6. • In similar fashion, growth in a country’s
economy means increases in physical output
or production.
GROWTH

7. • Development in human means not only
physical growth but also the necessary
changes that he has to undergo to develop
into a matured individual. This means that the
individual’s attitudes, habits, emotions,
feelings and intelligence must have undergone
changes to fit into the concept of matured
individual.
DEVELOPMENT

8. DEVELOPMENT
Example:
Growth
Development

9. • In similar fashion, development in a country’s
economy means both increases in output or
production and changes in the technical and
institutional arrangements by which the
factors of production are produced and
distributed.
ECONOMIC DEVELOPMENT

10. • Economic development of any nation can be
characterized by the following:
1. Increases in output or production has to be sustained
over a long period of time.
2. Changes in economic structure would spread out in the
entire economy.
3. Growth has to be accompanied by an increase in
efficiency.
ECONOMIC DEVELOPMENT

11. • Economic development is shaped not only by
economic factors but also by non-economic
factors like environmental, social, and cultural
conditions of the economy.
ECONOMIC DEVELOPMENT

12. • One can get the economic growth of a country
by comparing its GDP at present with the GDP
last year. However, it is not so easy to measure
development as it is based upon many
parameters such as health, education, literacy
levels, and life expectancy and so on.
ECONOMIC GROWTH VS.
ECONOMIC DEVELOPMENT

13. • Examples of countries like China and India that
have huge GDP but not labeled developed
because of their lowly ranks on other
parameters such as health, education and life
expectancy is enough to demonstrate the
difference between economic growth and
development.
ECONOMIC GROWTH VS.
ECONOMIC DEVELOPMENT

14. • In the study of economics, economic growth is
taken as a quantitative measure while
development is both a quantitative as well as
a qualitative measure which makes it difficult
to quantify.
ECONOMIC GROWTH VS.
ECONOMIC DEVELOPMENT