Do you agree with the view that growth is a necessary but not sufficient condition for development? Substantiate your answer.
Published: February 7, 2016
Economic Growth is a narrower concept that relates to an increase in a country’s real level of national output which can be caused by an increase in the quality of resources such as, education level, increase in the quantity of resources & improvements in technology or in another way an increase in the value of goods and services produced by every sector of the economy. On the other hand Economic development is a broader concept i.e. it applies in the context of people’s sense of morality. It relates to an increase in living standards, improvement in self-esteem needs and freedom from oppression as well as a greater choice. The most accurate method of measuring development is the Human Development Index which takes into account the literacy rates & life expectancy which affect productivity and could lead to Economic Growth. Economic growth is essential for a country, but it cannot alone serve for economic development. It requires political/people and administrative will to bring structural, institutional and technical changes to achieve sustainable growth to bring economic development. Further economic growth can be easily measured from country’s GDP, but GDP does not defines economic development because it does not provides individual living condition details or purchasing power capacity of an individual.
Model Questions Category: 060 - Economic Growth Development