Answer to Question #190579 in Political Science for Nana Yaw

Question

differences between economic growth and economic development

Answer 1

Economic growth reflects an increase in the real national income of a country. Economic development takes into consideration both quantitative and qualitative aspect; it reflects a raise or improvement in the standards of living in a country.

Economic growth is measured through the real GDP of a country whereas economic development is measured through quality of life e.g. health care, literacy measures, life expectancy, education, infrastructure etc.

Focusing only on income, economic growth is thus a single dimensional concept while economic development is a broad multidimensional phenomenon.

Economic growth is a short-term measure while economic development is a long-term process

Economic development occurs when there is economic growth but it's possible to have economic growth without economic development given factors such as corruption, income gap, congestion, and environmental problems among others.