Economic growth is usually refers to the quantitative increase in the total or per capital output of goods and services in an economy whereas development implies a positive change in the social, institutional and other structural relationships within which growth takes place.
- They are life – sustenance,
- Self esteem
These are fundamental human needs which could be achieved through development
(a) Life sustenance entails the ability of an individual to provide the basic needs which include foods shelter, health and protection. It is responsibility of the government to facilitate the provision of these basic needs through various economic activities,
(b) Self – esteem: which is sense of worth and self respect. This entails an individual not being used as a tool by others for their own end.
(c) Freedom: This entails freedom of individual. It involves expanded range of choices for societies and their members together with minimization of external constraints in the pursuits of some social servitude and to be able to choose.
OBJECTIVES OF Economic Development
(1) Provision of basic life sustaining goods example food, shelter health and protection
(2) Increases the standard of living through increases income, provision of jobs, better education and greater attention to cultural and humanistic values. To have that sense of worth and self respect – self esteem.
(3) To free individuals and nations from servitude and dependence. This entails the ability to expand the range of economic and social choices available to individuals and nations. To free individuals from evil of poverty, ignorance, filth, squalor, deprivation and exploitation
(4) The creation of employment
(5) To correct the existing economic, social or political injustice and oppression
(6) To enable people realize their potential build self confidence and lead lives of dignity and fulfillment.
(7) The attainment of equitable income distribution.
Economic growth can exist without economic development but economic development cannot exist without economic growth “because”
For growth to take place that is for future output, it is necessary to increase the existing level productive capacity, i.e. saved) and used to add to the existing stock of capital goods. Increasing the stock of capital goods is what is called investment”. We can see therefore that growth is not possible without the savings investment process.
The question we should ask at this point is “why is growth a widely held economic goal of every nation like that of Nigeria? The answer to the above question is very simple one, the growth of total output relative to population means more goods and services, more means of making these goods and services, available to the people.
An expanding real output means greater material abundance and implies a more satisfactory answer to the economizing problem – a growing economy therefore is in a superior position to meet new needs and resolve social economic problems both domestically and internationally.
A growing economy enjoys an increment in its annual real output which it can be used to satisfy existing needs more effectively or to undertake new programs example, an expanding red wage or salary income makes new opportunities available to any given family.
A growing economy will also undertake new programs to alleviate poverty and clean dip the environment, provide necessary infrastructural facilities, recreational facilities build new industries to employ people, build new schools, and provide other essential goods and services without impairing existing levels of consumption, investment, and public goods production.
Infact, economic growth allows a nation to realize existing economic goals more fully and to undertake new output absorbing endeavours. The goals realizable with sustainable economic growth are, full investment, macroeconomic stability etc.