a. Is multi-dimensional i.e. More output and changes in technical and institutional arrangements.
b. Involves qualitative change charge in composition and distribution of national and per capital income and chargein functional capacities.
c. Is regulated and controlled in character.
d. Includes discontinuous change.
2. Economic Growth is referred to the increase of per capital real gross domestic product over a period of time. Real GDP is a quantitative concept since it involves increased productive capacity in an economy, which leads to rising national output, incomes and living standards over time. Economic Growth can occur from two main factors:
a. The increased use of resources such as land, labour, capital and entrepreneurial resources due to improvements in technology.
b. The increased productivity of existing resources use through increased labour and capital productivity.
More Details on ECONOMIC GROWTH
In contrast, economic development is a qualitative process and refers to structural change of economic and social infrastructure in an Economy, which allows an increase in the standard of living in a nation’s population. Nigeria, for instance, is the highest populated country in the black word and ranks the 11th most populous country of the world. Nigeria is endowed with vast human and natural resources, including oil and gas. Notwithstanding, Nigeria is one of the nations regarded as underdeveloped or developing.
All the enumerated factors or critical questions above mentioned are applicable to Nigeria relative to her underdeveloped status. The Nigerian underdeveloped phenomenon has degenerated to a constellation of “
Economic Growth and development can vary from different countries, depending on their level of income, quality of life, environment, quality and the government’s involvement within the economy. The similarities and differences are evident in the Australian, Chinese and Indian economy.
The Australian market economy is one of the most competitive and strongest well-developed economics in the world, allowing it to have a relatively good economic growth and a high economic development. With a gross domestic pay (GDP) of approximately I trillion us dollars, the country was ranked 17th largest economy.
This has allowed Australia to have a high GDP of 38, 910 us dollars per capital. In recent months, the Australian economic growth rate has also accelerated, as Australia continues to maintain it’s strong and best performing economy in the developed world. The economy grew a seasonally by 1.2 percent in the June 2010 quarter, up from a revised 0.7 percent pace in January –March period, the ABS reported. The 1.2 percent quarterly rate is quickest since the June quarter of 2007, which indicates Australians.
3. Nevertheless, is economic growth without economic development meaningless?
Imagine a farmer. He has a plot of land.
Now he makes enough for him to eat.
He can add value to the land. That is economic growth. So how can he add value?
He could kill his neighbour and steal their land. (War) He could cut down the Forrest and expand his land. (Development)
He could purchase the land from his neighbour.
He could plant a new type of crop that increase yield (eg potatoes from the new world) (innovation)
He could find new ways to plant that increase yield (innovation)
He could take his crops to people and trade them for something (trade)
He could stop farming and start mining. The basic question is does adding value to the economy falls into what category. I like the example of the farm, because we can see it very clearly.
Development is a must for economic growth, without development nothing can be done. Investments in industrial business and other enterprise is a must for economic growth. `
Growth without development is very much possible. Growth and occur when the country put more inputs into production function. It can cheat by opening the country for foreign capital and technology. But to develop the country, it has to change the foundation structure, such as from agriculture to manufacturing or from grassroots to middle income class. If growth creates inequality, development cannot occur.
Yap sure development is need for economic growth … new machinery is needed (development) to increase production … new variety of seed is needed (development) for better farm production.
Economic development refers to the problems of underdeveloped countries and economic growth.
4. Further more, however it has been postulated that economic growth is one aspect of the process of economic development. (Forward 2007 et al. “there is an inescapable intimate relation between the two. Economic growth are two terms that are used interchangeably and sometimes incorrectly, however we could have one at the expense of the other.
Economic Growth focuses on market productivity and rise in GDP, this is as a direct result to increase production (i.e output of final goods and services) in every sector of the economy.
This focus is quantitative by Economic development is referred to as the investment by society and government (police intervention programs) this implies the promotion of an increase in the standard of living and quality of life. These actions include qualitative initiatives (environmental sustainability, health care, education).
Development is a fluid concept therefore, what constitute development for one may not be applicable to another. Micre’ (1989), p.6.
“Economic development is the process whereby the real per capital income of a country increases over a period of time. Subject to the stipulations that the number of people below. An absolute poverty line does not increase, and that the distribution of income does not become more unqual”.
This important process of translating your human resource and natural resource into sustainable resources is a difficult task. Whereby economic growth can take place without a clear impact on economic development, the former can be measured, however the latter; it is more difficult to define, a lot of variables have to be evident.
Certain countries have been given development country status; this fluid concept can change. What is developed now may be under develop later. However to maintain developmental status we need to; effectively manipulating our physical capital (UWI) to harness our capacity
change the foundation structure, such as from agriculture to manufacturing, or from grassroots to middle income class. If growth creates inequality, development cannot occur.
Ya some development is need for economic growth … new machinery is needed (development) to increase production … new variety of seed is needed (development) for better farm production.
Economic development refers to the problems of underdeveloped countries and economic growth to those of developed countries.
(Human Capital) through research and development; since technology, professional and administrative people are needed to make effective use of material capital.
In closing the two measurable aspect of development are quantitative and qualitative by nature, in any understanding, yes it’s meaningless to have one at the expense of the other. The benefit of economic growth should be enjoyed by all citizens in an equitable manner.