Question

Distinguish between economic growth and development.

Distinguish between economic growth and economic development.

Answer 1

Aspect	Economic Growth	Economic Development
Definition	Increase in the production of goods and services in an economy.	Process of increase in national income/output along with improvement in quality of life and rise in the standard of living.
Conceptual scope	Narrow concept focusing mainly on quantitative increase in income.	Broad concept including both quantitative and qualitative changes in GDP.
Nature of change	Single-dimensional: Focuses only on income increase.	Multi-dimensional: Includes income increase and improvement in living standards, reduction in inequality, poverty, illiteracy, unemployment, social and institutional changes.
Relationship	May occur without economic development; prerequisite for development.	Possible only with economic growth; economic development follows growth.
Focus	Increase in per capita income, production capacity, goods and services.	Improvement in income along with social and economic welfare and standard of living.
Examples of aspects	Real national income and per capita income increase.	Reduction of poverty, inequalities, unemployment; qualitative improvements like education and health.