Economics · Ch 2 — Indicators of Growth and Development
Growth vs Development: Key Differences
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Growth vs Development: Key Differences
Growth vs Development: Key Differences
| Basis | Economic Growth | Economic Development |
|---|---|---|
| Nature | Quantitative — rise in real GDP/GNP or PCI | Qualitative — rise in living standards, welfare, capabilities |
| Scope | Narrower — output and income only | Broader — health, education, equality, environment |
| How it is measured | Growth rate of GDP/GNP/PCI | Composite indices — HDI, PQLI, GDI |
| Distribution of gains | Says nothing about how income is shared | Concerned with equitable distribution of the gains |
| Can one happen without the other? | Growth can occur without development (jobless or inequitable growth) | Genuine, sustained development is rarely possible without some underlying growth |
| Time horizon | Can be a short-run, even cyclical, rise in output | A long-run, structural, sustained process |