Economic Development and Economic Growth:
It is commonly said that the concept of economic development
goes back to the emergence of "Industrial Revolution" in Europe
in 18th century. Continue
An American statistician Conard Lorenz (1905 ) used a diagram to show the
relationship between the population groups and their respective shares. The same
diagram (Lorenz Curve) is used to show the
relative inequality in the distribution of income at the world level.
Simply by, "Economic Development" we mean the continuous increase in real
income of a country over a long period of time. Moreover, it is also furnished
with technical and industrial changes in the society. Like
development, the economists also present the concept of "Economic Growth".
"Economic Development shows the excess of consumption and
production of a country as compared with increase in population. This increase
in population is due to better combination and increase in the productivity of
the factors of production".
There are following methods to measure the economic development:
To measure economic development with this approach a study was launched by
United Nations Research Institute on Social Development (UNRISD) in 1970. This
study was concerned with selection of the most appropriate Indicators of
Development and an analysis of the relationship between these
indicators at different levels of development.
Morris D. Morris developed "Physical Quality of Life Index (PQLI)".
included three indicators like life expectancy, infant mortality rate and
The growth of income (GNP) method identifies that path which
leads to increase the real incomes of the poor people. As a
result, they will become more productive, the value of their
assets will increase, hence they will be able to have a basket
of basic needs.
The latest and most ambitious effort to analyze the comparative situation of
socio-economic development in both UDCs and DCs has been undertaken by United
Nations Development Program (UNDP) in its annual series of Human Development
The economists have presented an approach to measure economic
development which is known as Humane Governance Index as a measure of economic
Governance is a three dimensional situation which is
consisted of economic, political and civic governance. The economic governance
is based upon all those factors which help to sustain economic
development. The political governance is based upon the
institutions which are used to rule on the part of govt.
Some economists are of the view that human welfare is the product of life expectancy
and per capita real output. Accordingly, we should take into
account not just the annual level of goods and services that is
produced by the economy, but also how long people live to enjoy
such annual amounts of goods and services.
The marvelous growth attained by DCs created a realization amongst the UDCs
that they could develop their economies as soon as possible by
following them. Continue
The reports of ILO, World Bank and other international agencies also promoted
this view that along with economic growth there should be a fairer distribution
1.2 billion people in the world are living in extreme poverty.
850 million people kick the health facilities. 1.3 billion
people do not have access to safe-drinking water. 2.6 billion
people are without sanitation facilities.
In strictly economic terms, economic development represents a situation
whereby the capacity of an economy changes from long term static situation to
generate and sustain an annual increase in GNP at the rates of 5% to 7% and even
In order to assess the stage of development or poverty attained by any
country a new measure has been introduced by UNDP in 1997. This measure
is not satisfied with the dollar-a-day criteria of world bank, (poverty line).