Economic Growth and Development

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what is economic growth and development

The growth of real income in an economy over a given period of time is economic prosperity. It is a physical concept. If national product, GDP and per capita income are increasing, it is believed that economic growth is taking place.

Economic Growth and Development

The notion of economic growth is broader than the notion of economic growth. Economic growth is related to the growth of production, while economic growth is related to the growth of production, as well as all the social, cultural, economic, qualitative and consequential changes. Economic growth is objective while


 is subjective.

Economic Growth and Development

Measure of economic development

In the measurement of economic development, the quality of life of per capita income is not considered a correct measurement. Its measurement includes all four such as changes in the nature of economic, political and social institutions, education and literacy rates, life expectancy, level of nutrition, healthcare services, GNP per capita sustainable consumption, social status, Literacy rate, Life expectancy, Healthcare, Calorie intake, Infant mortality rate etc.

Definitions of measures for economic development

  • Economic growth = only quantitative change
  • Infrastructure.
  • Economic Development = Conclusive and qualitative change

which is the best measure of economic growth of a country

There are five approaches to determine the comparative status of economic development of different countries;

(A) basic needs approach economic development– This approach was counter-proposed in 1970 by the World Bank.

(B) Physical Quality of Life Index -(PQL) presented by John Tinversion and Maarish D. Marish of this index. Three indices are used to measure economic development under the CF.

  • Life Expectancy
  • Infant Mortality
  • Literacy

(C) Net Economic Welfare Measure – William Noordas and James Tobin developed the concept of the Manger of Economic Welfare (MEW) for measuring quality of life which is a measure of economic growth, which was later developed by Samuelsson. And revised and measured it.

G.N.P (Gross National Product) – (Direct cost of production and loss of modern citizen and limits of housewives.

(D) Purchasing Power Parity Method: – GR Cassell presented this method. Under this, the gross national income of a country should not be expressed at any predetermined international foreign exchange rate, which is expressed on the basis of purchasing power of the currency within that country. The current World Bank is using this method to compare the living standards of different countries.

Economic Growth and Development

(E) Human Ebullient India: – This index was conceptualized in 1990 by the famous economist Mahbut-ul-Haq and his associates AK Sen and Singer Hans associated with the program related to the United Nations.

The Human Development Index developed by them is based on three variables-

  • Long and healthy life
  • Knowledge or education
  • subsistence level

In the year 2010, these three dimensions were defined and changes were made in the way of human development. The level of human development is now measured in the context of the following four indices.

  • Human Development Index (HDI)
  • Inequality Adjusted Human Development Index (THDI)
  • Lag odds asymmetry (GII)
  • Multi Dimensional Property Index (MPI)

 Human Development Index 

Prior to 2010 human development was assessed on life-light, literacy and per capita income, while after 2010 it was assessed on the basis of longevity and healthy living, access to knowledge and respectable living standards.

Inequality Adjusted Human Development Index (IHDI): –

It accommodates incivility in every dimension of human development. The IHDI Human Development Index indicates the actual level of abnormality, while the Human Development Index indicates the potential development level.

Gender Inequality Index (GII): –

This index shows the spread of women. This includes things like reproductive health, empowerment and labor markets. GII refers to the decline of human development due to asymmetry between men and women. It varies between 0 and 1. A zero represents a state of perfect parity and 1 is an absolute asymmetry. It contains the following references.

  • Maternal death (per million live births)
  • Adult (15–19)
  • Achieve Secondary Higher Secondary Level.
  • Labor force participation rate (LFPS)
  • Multidimensional Poverty Index (M.P.I): –

This index identifies health education at the individual level and saving at the standard of living. Dutchep represents the portion of the population that is a victim of multi-income poverty. It has a total of ten sub-standards related to education, health and standard of living.

Related to education:

  • People deprived of five years of schooling.
  • No school enrollment for school-going children.

Allied Health:-

  • Malnutrition
  • Infant Mortality Rate (per thousand live births)

Related in standard of living: –

  • Lack of clean and pollution free fuel.
  • Not a car (four wheeler).
  • no electricity.
  • Lack of clean drinking water.
  • No sanitation.

Human development has a maximum value of 1 and a minimum value of 0. That is, 1 represents the state of maximum human development and zero represents the state of minimum human development.

traditional measures of economic development

The traditional measure of economic outcomes is GDP per capita. It represents the average wealth of its inhabitants. Many criticisms are going on GDP, it is a pretty bad proxy of nearly everything : its construction only captures based on formal (i.e. legal) activities, many important variables are omitted (education, health, inequality, etc.).

An interesting indicator has been built up by the United Nations, the Human Development Index which combines education, life expectancy, GDP per capita, Population growth, The occupational structure of the labor force, Urbanization, Per capita consumption. It proposes a more representative measure of the life’s quality in many countries. Also, many criticisms raised, for instance it does not account for inequalities and other economic outcomes.

With both indicators, you will have a proxy for economic development. As many economic measures exist, be sure that there is any indicator covering what you’re looking for. For instance, GDP per capita and HDI cannot measure inequalities, you will need to use the Gini indicator. Basically, every question has its own indicators.

sustainable development definition

The concept of sustainable development first emerged in a report published in 1987 in the report of the World Commission for Environment and Development called Hour Common Future. Which states that – “Development that meets the needs of the present, without compromising the ability of future generations to meet their needs.” While its importance was acknowledged at the 1992 Earth Conference in Rio de Janeiro, the added conflict Plan of Implementation was finalized at the 2002 World Conference on Sustainable Development. In Delhi Proclamation 2002, seven basic principles of international law on sustainable development were identified: –

  • Duty of States to ensure sustainable use of natural resources.
  • Poverty alleviation and equity
  • A cautious approach in the context of human health, natural resources and ecological systems.
  • Public participation was an information and court.
  • Good governance
  • Common but differential liability principle
  • Joe on the synergy between human resources as well as socio-economic environmental facts.

 

Gross domestic product is the best way to measure economic growth. It takes into account the entire economic output of the country. It includes all the goods and services that businesses in the country produce for sale.

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