This document discusses the key differences between economic growth and economic development. It states that economic growth is defined as a quantitative and positive increase in real GDP or income per capita over time, while economic development is a qualitative concept that includes not only economic growth but also improvements to standards of living through reduced inequality and poverty. Economic development encompasses both economic and social factors, while economic growth only considers increases in output. The document also examines factors that influence economic growth and development and obstacles to development such as vicious circles of poverty.

1. Economic Growth &
Economic Development
Dr. Pragati Krishnan
Assistant Professor (Guest)
School of Studies in Economics
Pt. Ravishankar Shukla University
Raipur, Chhattisgarh
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2. Growth : Quantitative concept
Development : Qualitative concept
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6. Trickle Down Effect
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7. Economic growth is defined
• positive terms.
• It is measured by the sustained increase in real,
national or per capita income of a nation over
time.
• Economic growth is usually measured in terms of
an increase in real GNP or GDP over time or an
increase in income per head over time.
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8. Economic Development is
• a value-based concept.
• It should include not only the acceleration of economic growth
but also the reduction of inequality and eradication of poverty,
increase in employment opportunities and welfare of the masses,
etc.
• Economic development = Economic Growth + Standard of Living.
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9. Difference Between Economic Growth and Economic Development
Economic Growth Economic Development
Single dimensional i.e., increase in output alone. Multi dimensional i.e., more output and changes in
technical and institutional arrangements.
Quantitative Changes-Change in national and per capital
income.
Qualitative Changes-Change in composition and
distribution of national and per capital income and change
in functional capacities.
Spontaneous in character. Gradual and steady change in the long run.
Discontinuous Change Continuous Change.
Growth is possible without development Growth to some extent is essential for development.
Determinant of economic growth may be economic
development.
Economic development is the determinant of economic
growth
Solution of the problem of under developed countries. Solution of the problem of developed countries.
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10. Measurement of Economic Development
➢GNP
➢GNP Per Capita
➢Welfare
➢Social Indicators or Basic Needs
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11. Factors Affecting Economic Growth and Development
•Economic Factors
•Non Economic Factors
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12. Obstacles to Economic Development
Vicious Circles of Poverty
• Ragnar Nurkse
➢ Estonian –American Economist.
➢ “ A country is poor because it is poor.”
➢ एक देश गरीब है क्योंकक वह गरीब है
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13. Reasons for Vicious Circles of Poverty
• Demand side of Vicious circle
• Supply side of Vicious Circle
• Vicious circle of Market imperfections
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14. Demand Side of VCP
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15. Supply Side of VCP
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16. Market Imperfections
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17. Underdeveloped Economy
• An underdeveloped economy is that economy which is characterized
by the widespread poverty, the low economic performances of the
economy as compared to advanced economies and under utilization
of production potential. The low per capita income is only a symbol.
• PROF.SINGER, ”An underdeveloped country is like a giraffe,
difficult to describe but you know one when you see one.”
• NURKSE,” Underdeveloped countries are those which compared
with advanced countries are underdeveloped with capital in relation
to their population and natural resources.”
• It is characterized by the co-existence in greater or less degree of
under utilization human and natural resources on account of low rate
of capital formation and technological backwardness.
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18. Characteristics of Underdeveloped Economy
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Main features of an underdeveloped Economy
• Low Per capita income
• Economic inequalities
• Low levels of living
• Dependence on agriculture
• Low growth rate of per capita income
• High rate of population growth
• Features concerning foreign trade
• Vicious circle of poverty
• Unemployment and underemployment
• Deficiency of capital
• Backward techniques of production
• Backward industrial structure

20. Thank You!!!
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