Economic Development and Economic Growth:

Why Economic Development?

It is commonly said that the concept of economic development goes back to the emergence of "Industrial Revolution" in Europe in 18th century. Continue reading.

Lorenz Curve and GINI-Coefficient:

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. Continue reading.

Economic Development Vs Economic Growth:

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". Continue reading.

Different Definitions of Economic Development:

"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". Continue reading.

Measurement of Economic Development By Traditional Approach:

There are following methods to measure the economic development: Continue reading.

Approaches to Economic Development/Measurement of Economic Development in Terms of Quality of Life:

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. Continue reading.

Physical Quantity of Life Index (PQLI):

Morris D. Morris developed "Physical Quality of Life Index (PQLI)". He included three indicators like life expectancy, infant mortality rate and literacy rate. Continue reading.

Growth of GNP Versus Basic Needs Approach:

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. Continue reading.

Human Development Index (HDI):

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 Reports. Continue reading.

Good Governance and Humane Governance Index:

The economists have presented an approach to measure economic development which is known as Humane Governance Index as a measure of economic growth. Continue reading.

Measurement of Humane Governance/Good Governance:

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. Continue reading.

Measurement of Economic Development with Combining GDP and Life Expectancy:

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. Continue reading.

Growth Versus Distribution:

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 reading.

Re-Distribution with Growth (RWG):

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 of incomes. Continue reading.

International Inequalities:

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. Continue reading.

New/Modern Economic View of Development:

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 more. Continue reading.

Human Poverty Index (HPI) as a Measure of Economic Growth:

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). Continue reading.