Economic growth vs development

Economic growth and economic development

1. PRESENTED BY :- ARUN KUMAR- 1368 Ramanujan College (University of Delhi)

2. ECONOMIC GROWTH IT REFERS TO A PROCESS OF SUSTAINED INCREASE IN THE REAL NATIONAL INCOME OVER A LONG PERIOD OF TIME. IT MEASURES THROUGH INCREASE IN AGGREGATE OUTPUT OF GOODS AND SERVICES IN A COUNTRY DURING A GIVEN PERIOD OF TIME. IT IS MEASURABLE AND OBJECTIVE. IT IS A CONCERN OF DEVELPOED OR ADVANCED COUNTRIES AS THEY DEVELOPED THEIR NATURAL RESOURCES. IT IS POSSIBLE FOR AN ECONOMY TO HAVE ECONOMIC GROWTH WITHOUT ECONOMIC DEVELOPMENT.

3. FEATURES OF ECNOMIC GROWTH 1.MEASURED IN TERMS OF INCREASE IN REAL PER CAPITA INCOME. 2.INCREASE IN REAL PER CAPITA INCOME SHOULD BE OVER A LONG PERIOD OF TIME. 3.ECONOMIC GROWTH IS OUTPUT ORIENTED.

4. ECONOMIC DEVELOPMENT IT IS A CONCEPT WHICH INCLUDES ECONOMIC GROWTH AND PROGRESSIVE CHANGES IN SOCIAL, ECONOMIC, POLITICAL, CULTURAL AND HISTORICAL LEVELS. IT INCLUDES BOTH ECONOMIC AND NON-ECONOMIC FACTORS. IT IS A CONCERN OF UNDER-DEVELOPED COUNTRIES WHO NOT ONLY HAVE TO FIND OUT THEIR NATURAL RESOURCES BUT ALSO NEED TO ENSURE QUALITY OF LIFE TO ITS PEOPLE. IT IS POSSIBLE TO HAVE ECONOMIC DEVELOPMENT WITHOUT ECONOMIC GROWTH.

5. FEATURES OF ECONOMIC DEVELOPMENT 1.ITS INDICATORS ARE a) LIFE EXPECTANCY RATE f) LITERACY RATE b) POPULATION GROWTH g) CAPITAL FORMATION c) GDP GROWTH h ) INFRASTRUCTURE d) TECHNOLOGY i) POLITICAL FACTORS e) SOCIAL AND CULTURAL FACTORS 2.THIS PROCESS IS SUBJECT TO SUDDEN CHANGES THAT OCCUR ONE BY ONE . 3. IT INCLUDES BOTH ECONOMIC AS WELL AS NON- ECONOMIC FACTORS.

6. ECONOMIC GROWTH VERSUS ECONOMIC DEVELOPMENT THE FACTORS WHICH DIFFERENTIATE ECONOMIC GROWTH[EG] AND ECONOMIC DEVELOPMENT[ED] ARE :- DEFINITION EG - NARROW CONCEPT ED - COMPREHENSIVE CONCEPT 2. INDICATORS EG – REAL NATIONAL INCOME AND REAL PER CAPITA INCOME ED – PHYSICAL QUALITY OF LIFE INDEX AND HDI

7. 3. MEASURABILITY EG – EASILY MEASURABLE ED – NOT EASILY MEASURABLE 4. APPLICABILITY EG – ADVANCED COUNTRIES ED – UNDER-DEVELOPED COUNTRIES 5.TIME FACTOR EG – LONG TERM PERIOD ED – SUDDEN CHANGES NOTE :- IT IS POSSIBLE FOR AN ECONOMY TO HAVE ECONOMIC GROWTH WITHOUT ECONOMIC DEVELOPMENT BUT ECONOMIC DEVELOPMENT WITHOUT ECONOMIC GROWTH IS NOT POSSIBLE.

8. CONCLUSION ECONOMIC GROWTH AND ECONOMIC DEVELOPMENT BOTH ARE IMPORTANT FOR AN ECONOMY TO SUSTAIN AND IMPROVE QUALITY OF LIFE OF ITS PEOPLE. ECONOMIC GROWTH RESULTS IN RISE IN REAL GNP AND NNP WHEREAS ECONOMIC DEVELOPMENT RESULTS IN REDUCE POVERTY, UNEMPLOYMENT, RESTRICTED POPULATION GROWTH AND INCREASE IN LITREACY RATE AND CAPITAL FORMATION.

9. THANK YOU