Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum
IIIbSEMESTERbFIVEbYEAR
NOTEbONbGROWTHbANDbDEVELOPMENT
Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum,bMidhunbVbP.bAsst.bProfessor
,Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum
DefinitionbofbEconomicbGrowth
EconomicbgrowthbrefersbtoblongbtermbincreasebinbrealbnationalbincomebonbrealbnationalbOutput.bEco
nomicbgrowthbcanbbebexpressedbinbtermsbofbgrossbdomesticbproductb(GDP)bandbgrossbnationalbprod
uctb(GNP).b Growthbcomparebinbabsolutebandbpercentagebchange,bi.e.bhowbmuchbanbeconomybhasbpr
ogressedbsinceblastb year.bGrowthbisbanboutcomebofbthebincreasebinbthebqualitybandbquantityb ofbresour
cesbandbadvancementbofbtechnology.
InbthebwordsbofbProf.Meier,b“Webshallbdefinebeconomicbgrowthbasbthebprocessbwherebybperbcapitabr
ealbincomebofbabcountrybincreasesboverbablongbperiodbofbtime.
AccordingbtobProf.Salvatore,b“Economicbgrowthbhasbbeenbdefinedbasbthebprocessbwherebybabc
ountry’sbrealbperbcapitabgrossbnationalbproductb(GNP)borbincomebincreasesboverbabsustainedbpe
riodbofbtimebthroughbcontinuingbincreasebinbperbcapitabproductivity.
DefinitionbofbEconomicbDevelopment
Comparedbtobeconomicbgrowth,beconomicbdevelopmentbisbabbroaderbconcept.bItbisbnotbonlybincludes
thebquantitativebchangesb(likebincreasebinbnationalboutputborbperbcapitaboutput)binbthebeconomy,bbutb
b
alsobincludesbcertainbqualitativeborbsocialbchangesb(like,bincreasebinbthebratebofbliteracy,bimproveme
ntbinbhealthbcarebfacility,bconservationbofbenvironmentbetc).bEconomicbDevelopmentbisbdefinedbasbt
hebprocessbofbincreasebvolumebofbproductionbalongbwithbthebimprovementbinbtechnology,brisebinbtheb
levelbofbliving,binstitutionalbchanges,betc.bInbshort,bitbisbthebprogressb inbthebsocioeconomicbstructureb
ofbthebeconomy.b InbthebwordsbofbOkunbandbRichardson,
``Economicbdevelopmentbisbabsustainedbandbsecularbimprovementbinbthebmaterialbwell-
beingbwhichbisbreflectedbinbincreasebinbgoodsbandbservices.''bThebobjectivebofbeconomicbdevelopme
ntbisbrisebinbnationalbincomebbybmakingbanbimprovementbinbthebqualitybofblifebofbthebpeople.
AccordingbtobProf.M.P.Todaro,b“Economicbdevelopmentbisbabmultidimensionalbprocessbinvolvingb
majorbchangesbinbsocialbstructures,bpopularbattitudes,bandbnationalbinstitutionsbasbwellbasbthebacceler
ationbofbeconomicbgrowth,bthebreductionbofbinequalitybandbtheberadicationbofbabsolutebpoverty”.
Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum,bMidhunbVbP.bAsst.bProfessor
,Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum
AccordingbtobUNObExpertbcommittee,b“Developmentbconcernsbnotbonlybman’sbmaterialbneedsbbutba
lsobthebimprovementbofbthebsocialbconditionbofbhisblife.bDevelopmentbarebthereforebnotbonlybecono
micbgrowthbbutbgrowthbplusbchanges,bsocial,bculturalbandbinstitutionalbasbwellbasbeconomic.
InbthebwordsbofbMeierbandbBaldwin,b“Economicbdevelopmentbisbabprocessbwherebybthebrealbperbcapi
tabincomebofbabcountrybincreasesboverbablongbperiodbofbtime”.
AccordingbtobColinbClark,b“Economicbdevelopmentbisbsimplybanbincreasebinbeconomicbwelfare.”bKe
ybDifferencesbbetweenbEconomicbGrowthbandbEconomicbDevelopment
Theb basicb differencesb betweenb economicb growthb andb developmentb areb explainedb inb theb pointsb
givenbbelow:
PointsbofbDifferencebbetweenbEconomicbDevelopmentbandbEconomicbGrowth
Economistsbhavebdistinguishedbthebtwobconceptsbusingbdifferentbcriteria.bThebsalientbpointsbofbdiffe
rencebarebasbunder:
1. Singlebdimensionalbandbmulti-dimensional
Economicbgrowthbisbsinglebdimensional.bItbisbconcernedbwithbincreasebinbnationalbandbperbcapitabinc
ome.bOnbthebotherbhand,beconomicbdevelopmentbisbabmulti-dimensional.
2. QuantitativebandbQualitativebchanges
InbthebwordsbofbProf.J.K.Mehta,bthebtermsbdevelopmentbandbgrowthbarebnotbsynonymous.bGrowthbis
abquantitativebconceptbwhereasbdevelopmentbisbbybandblargebabqualitativebconcept.
b
3. Spontaneousbandbdiscontinuousbv/sbsteadybandbcontinuousbchanges
InbthebwordbofbSchumpeter,b“developmentbinvolvesbdiscontinuousbandbspontaneousbchangesbinb theb
stationarybstatebwhichbforeverbalterbandbdisplacebthebequilibriumbstatebpreviouslybexisting,bwhilebgr
owthbisbabgradualbandbsteadybchangebinbtheblongbrunbwhichbcomebaboutbbybgeneralbincreasebinbthebra
tebofbsavingbandbpopulation”.
4. Developmentbasbthebdeterminantbofbgrowth
Accordingbtobsomebeconomistsbthebtermbeconomicbdevelopmentbisbusedbtobdescribebthebdeterminant
sbofbeconomicbgrowth,bsuchbas,bchangesbinbtechniquesbofbproduction,binbsocialbattitudesbandbinbinstit
utions.
5. Growthbwithoutbdevelopment
Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum,bMidhunbVbP.bAsst.bProfessor
, Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum
AccordingbtobRobertbClower,bgrowthbisbpossiblebwithoutbdevelopment.bDevelopmentbonbthebotherbh
andbmustbincludebgrowth.bInbfact,b‘inclusivebgrowth’.
6. RelatedbtobthebproblemsbofbUDCs
Prof.UrsulabHicksbisbofbthebopinionbthat,b“developmentbshouldbrelatebtobbackwardbcountries,bwhereb
therebisbpossibilitybofbdevelopingbandbusingbhithertobunusedbresources.bThebtermbgrowthbisbapplicab
lebtobeconomicallybadvancedbcountries,bwherebmostbofbthebresourcesbarebalreadybknownbandbdevelo
ped”.
Conclusion
Afterbthebabovebdiscussion,bwebcanbsaybthatbeconomicbdevelopmentbisbabmuchbbiggerbconceptbthanbe
conomicbgrowth.bInbotherbwords,beconomicbdevelopmentbincludesbeconomicbgrowth.bAsbthebformer
usesbvariousbindicatorsbtobjudgebthebprogressbinbanbeconomybasbabwhole,btheblatterbusesbonlybspecifi
b
cbindicatorsblikebgrossbdomesticbproduct,bindividualbincomebetc.
DifferencebbetweenbGrowthbandbDevelopment
Growth Development
(1)bQuantitativebconcept:bEconomicbgrowthbi (1)bQuantitativebasbwellbasbqualitativebconc
sbmerelybabquantitativebconcept.bItbisbconcern ept:bconceptbofbeconomicbdevelopmentbisbb
edbwithbratebofbproductionborbratebofbincreasebi
nbnationalbincome othbquantitativebandbqualitativebinbnature.bIt
isbconcernedbwithbqualitybofblifeb(abqualitati
b
vebaspect)balongbwithbincreasebinbperbcapita
income
b
(abquantitativebconcept)
(2)bIgnoresbdistributionbofbincome: (2)bConsidersbdistributionbofbincome:binbca
distributionbofbincomebignoredbinbcasebofbecono sebofbeconomicbdevelopment,bdistributionb
micbgrowth.bInbspitebofbincreasebinbincome,bnum ofbincomebisbgivenbduebconsideration.bRed
berbofbpoorbpeoplebmaybrisebifbthebdistributionbof uctionbinbinequalitybisbonebofbthebprincipalbt
bincomebbecomesbfurtherbunequal.
argetsbofbeconomicbdevelopment.bInequalit
ybofbincomebandbWealthbmustbbebreduced.
(3)bIndependentbofbstructural, (3)bAssociatedbwithbstructural,
Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum,bMidhunbVbP.bAsst.bProfessor
IIIbSEMESTERbFIVEbYEAR
NOTEbONbGROWTHbANDbDEVELOPMENT
Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum,bMidhunbVbP.bAsst.bProfessor
,Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum
DefinitionbofbEconomicbGrowth
EconomicbgrowthbrefersbtoblongbtermbincreasebinbrealbnationalbincomebonbrealbnationalbOutput.bEco
nomicbgrowthbcanbbebexpressedbinbtermsbofbgrossbdomesticbproductb(GDP)bandbgrossbnationalbprod
uctb(GNP).b Growthbcomparebinbabsolutebandbpercentagebchange,bi.e.bhowbmuchbanbeconomybhasbpr
ogressedbsinceblastb year.bGrowthbisbanboutcomebofbthebincreasebinbthebqualitybandbquantityb ofbresour
cesbandbadvancementbofbtechnology.
InbthebwordsbofbProf.Meier,b“Webshallbdefinebeconomicbgrowthbasbthebprocessbwherebybperbcapitabr
ealbincomebofbabcountrybincreasesboverbablongbperiodbofbtime.
AccordingbtobProf.Salvatore,b“Economicbgrowthbhasbbeenbdefinedbasbthebprocessbwherebybabc
ountry’sbrealbperbcapitabgrossbnationalbproductb(GNP)borbincomebincreasesboverbabsustainedbpe
riodbofbtimebthroughbcontinuingbincreasebinbperbcapitabproductivity.
DefinitionbofbEconomicbDevelopment
Comparedbtobeconomicbgrowth,beconomicbdevelopmentbisbabbroaderbconcept.bItbisbnotbonlybincludes
thebquantitativebchangesb(likebincreasebinbnationalboutputborbperbcapitaboutput)binbthebeconomy,bbutb
b
alsobincludesbcertainbqualitativeborbsocialbchangesb(like,bincreasebinbthebratebofbliteracy,bimproveme
ntbinbhealthbcarebfacility,bconservationbofbenvironmentbetc).bEconomicbDevelopmentbisbdefinedbasbt
hebprocessbofbincreasebvolumebofbproductionbalongbwithbthebimprovementbinbtechnology,brisebinbtheb
levelbofbliving,binstitutionalbchanges,betc.bInbshort,bitbisbthebprogressb inbthebsocioeconomicbstructureb
ofbthebeconomy.b InbthebwordsbofbOkunbandbRichardson,
``Economicbdevelopmentbisbabsustainedbandbsecularbimprovementbinbthebmaterialbwell-
beingbwhichbisbreflectedbinbincreasebinbgoodsbandbservices.''bThebobjectivebofbeconomicbdevelopme
ntbisbrisebinbnationalbincomebbybmakingbanbimprovementbinbthebqualitybofblifebofbthebpeople.
AccordingbtobProf.M.P.Todaro,b“Economicbdevelopmentbisbabmultidimensionalbprocessbinvolvingb
majorbchangesbinbsocialbstructures,bpopularbattitudes,bandbnationalbinstitutionsbasbwellbasbthebacceler
ationbofbeconomicbgrowth,bthebreductionbofbinequalitybandbtheberadicationbofbabsolutebpoverty”.
Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum,bMidhunbVbP.bAsst.bProfessor
,Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum
AccordingbtobUNObExpertbcommittee,b“Developmentbconcernsbnotbonlybman’sbmaterialbneedsbbutba
lsobthebimprovementbofbthebsocialbconditionbofbhisblife.bDevelopmentbarebthereforebnotbonlybecono
micbgrowthbbutbgrowthbplusbchanges,bsocial,bculturalbandbinstitutionalbasbwellbasbeconomic.
InbthebwordsbofbMeierbandbBaldwin,b“Economicbdevelopmentbisbabprocessbwherebybthebrealbperbcapi
tabincomebofbabcountrybincreasesboverbablongbperiodbofbtime”.
AccordingbtobColinbClark,b“Economicbdevelopmentbisbsimplybanbincreasebinbeconomicbwelfare.”bKe
ybDifferencesbbetweenbEconomicbGrowthbandbEconomicbDevelopment
Theb basicb differencesb betweenb economicb growthb andb developmentb areb explainedb inb theb pointsb
givenbbelow:
PointsbofbDifferencebbetweenbEconomicbDevelopmentbandbEconomicbGrowth
Economistsbhavebdistinguishedbthebtwobconceptsbusingbdifferentbcriteria.bThebsalientbpointsbofbdiffe
rencebarebasbunder:
1. Singlebdimensionalbandbmulti-dimensional
Economicbgrowthbisbsinglebdimensional.bItbisbconcernedbwithbincreasebinbnationalbandbperbcapitabinc
ome.bOnbthebotherbhand,beconomicbdevelopmentbisbabmulti-dimensional.
2. QuantitativebandbQualitativebchanges
InbthebwordsbofbProf.J.K.Mehta,bthebtermsbdevelopmentbandbgrowthbarebnotbsynonymous.bGrowthbis
abquantitativebconceptbwhereasbdevelopmentbisbbybandblargebabqualitativebconcept.
b
3. Spontaneousbandbdiscontinuousbv/sbsteadybandbcontinuousbchanges
InbthebwordbofbSchumpeter,b“developmentbinvolvesbdiscontinuousbandbspontaneousbchangesbinb theb
stationarybstatebwhichbforeverbalterbandbdisplacebthebequilibriumbstatebpreviouslybexisting,bwhilebgr
owthbisbabgradualbandbsteadybchangebinbtheblongbrunbwhichbcomebaboutbbybgeneralbincreasebinbthebra
tebofbsavingbandbpopulation”.
4. Developmentbasbthebdeterminantbofbgrowth
Accordingbtobsomebeconomistsbthebtermbeconomicbdevelopmentbisbusedbtobdescribebthebdeterminant
sbofbeconomicbgrowth,bsuchbas,bchangesbinbtechniquesbofbproduction,binbsocialbattitudesbandbinbinstit
utions.
5. Growthbwithoutbdevelopment
Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum,bMidhunbVbP.bAsst.bProfessor
, Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum
AccordingbtobRobertbClower,bgrowthbisbpossiblebwithoutbdevelopment.bDevelopmentbonbthebotherbh
andbmustbincludebgrowth.bInbfact,b‘inclusivebgrowth’.
6. RelatedbtobthebproblemsbofbUDCs
Prof.UrsulabHicksbisbofbthebopinionbthat,b“developmentbshouldbrelatebtobbackwardbcountries,bwhereb
therebisbpossibilitybofbdevelopingbandbusingbhithertobunusedbresources.bThebtermbgrowthbisbapplicab
lebtobeconomicallybadvancedbcountries,bwherebmostbofbthebresourcesbarebalreadybknownbandbdevelo
ped”.
Conclusion
Afterbthebabovebdiscussion,bwebcanbsaybthatbeconomicbdevelopmentbisbabmuchbbiggerbconceptbthanbe
conomicbgrowth.bInbotherbwords,beconomicbdevelopmentbincludesbeconomicbgrowth.bAsbthebformer
usesbvariousbindicatorsbtobjudgebthebprogressbinbanbeconomybasbabwhole,btheblatterbusesbonlybspecifi
b
cbindicatorsblikebgrossbdomesticbproduct,bindividualbincomebetc.
DifferencebbetweenbGrowthbandbDevelopment
Growth Development
(1)bQuantitativebconcept:bEconomicbgrowthbi (1)bQuantitativebasbwellbasbqualitativebconc
sbmerelybabquantitativebconcept.bItbisbconcern ept:bconceptbofbeconomicbdevelopmentbisbb
edbwithbratebofbproductionborbratebofbincreasebi
nbnationalbincome othbquantitativebandbqualitativebinbnature.bIt
isbconcernedbwithbqualitybofblifeb(abqualitati
b
vebaspect)balongbwithbincreasebinbperbcapita
income
b
(abquantitativebconcept)
(2)bIgnoresbdistributionbofbincome: (2)bConsidersbdistributionbofbincome:binbca
distributionbofbincomebignoredbinbcasebofbecono sebofbeconomicbdevelopment,bdistributionb
micbgrowth.bInbspitebofbincreasebinbincome,bnum ofbincomebisbgivenbduebconsideration.bRed
berbofbpoorbpeoplebmaybrisebifbthebdistributionbof uctionbinbinequalitybisbonebofbthebprincipalbt
bincomebbecomesbfurtherbunequal.
argetsbofbeconomicbdevelopment.bInequalit
ybofbincomebandbWealthbmustbbebreduced.
(3)bIndependentbofbstructural, (3)bAssociatedbwithbstructural,
Notes,bDeptbofbEconomics,bGovtbLawbCollege,bTrivandrum,bMidhunbVbP.bAsst.bProfessor
