Normally in textbooks, growth and development are used synonymously, and this usage is widely acceptable. However, in particular, the two terms have been distinguished by different economists as follows;
Concept of Economic Development
1. To some economists, economic development refers to the process of expansion of backward economies, while economic growth relates to that of YoY measure.
2. Schumpeter, however, uses the term "economic development" as a spontaneous and discontinuous change in the stationary state which disturbs the equilibrium state previously existing. And the term "economic growth" is used to denote a steady and gradual change in the long run which comes through a general increase in the rate of saving and population in a dynamic economy.
3. Prof. Kindleberger has given the differences between growth and development as; "Growth may well imply not only more output and also more inputs and more efficiency, i.e., an increase in output per unit of input. Development goes beyond these to imply changes in the structure of outputs and in the allocation of inputs by sectors. By analogy with human beings to stress growth involves focusing on height and weight, while to emphasize development, draws attention to the change in functional capacity in physical coordination.
4. To some, economic development is the outcome of conscious and deliberate efforts involved in planning. Economic growth, on the other hand, signifies the progress of an economy under the stimulus of certain favourable circumstances, e.g., the progress achieved by the United Kingdom during the Industrial Revolution.
5. In his simple words, A. Maddison says, "The raising of income levels is generally called economic growth in rich countries and in poor ones it is called economic development". Mrs. Hicks has also expressed almost the same views and said that economic development refers to the problems of underdeveloped countries and economic growth to those of advanced countries she points out that the problems of underdeveloped countries are concerned with development of unused resources, even though their uses are well-known; while those of advanced countries are related to growth, most of their resources being already known and developed to a considerable extent.
6. According to Prof. Mehta, however, the term "growth" has quantitative significance. Growth suggests an increase in the quantity or volume of something. An increase in a country's population, national income; per capita income, consumption, saving, investment, foreign trade etc. over a period, all imply growth. In economics, however, growth strictly means an increase in real income, gross and per capita. On the other hand, development is a process of expansion, fulfilling the desire to have an increase in national income. From the above will be clear, the distinction and interface of growth and development.
Concept of Economic Development
•In economic terms,
development has been understood as achieving sustainable rates of growth of
income per-capita to enable the nation to expand its output faster than the
population (Todaro and Smith 2011).
According to Prof. Meier and Baldwin:
" Economic Development is a process whereby an economy's real National Income increases over a long period of time"
vLike Todaro Prof. Denis Goulet emphasises on these three Core Values of Development in his book
“The Cruel Choice” published in 1971:
Life Sustenance:
The life-sustaining basic human needs
include food, shelter, health and protection. When any one of these is absent
or in critically short supply, a condition of absolute
"underdevelopment" exists.
Self-esteem:
A second universal component of good life is
self- esteem- a sense of worth and self-respect- of not being used as a tool by
others for their own ends. Due to the significance attached to material values
in developed nations, worthiness and esteem are now-a-days increasingly
conferred only in countries that possess economic wealth and technological
power- those that have developed.
Freedom
Arthur Lewis stressed the relationship
between economic growth and freedom from servitude when he concluded that
"the advantage of economic growth is not that wealth increases happiness,
but that it increases the range of human choices.
Goulet, D. (1971) The Cruel Choice: A New
Concept in the Theory of Development, New York, Athenaeum
1. To some economists, economic development refers to the process of expansion of backward economies, while economic growth relates to that of YoY measure.
2. Schumpeter, however, uses the term "economic development" as a spontaneous and discontinuous change in the stationary state which disturbs the equilibrium state previously existing. And the term "economic growth" is used to denote a steady and gradual change in the long run which comes through a general increase in the rate of saving and population in a dynamic economy.
3. Prof. Kindleberger has given the differences between growth and development as; "Growth may well imply not only more output and also more inputs and more efficiency, i.e., an increase in output per unit of input. Development goes beyond these to imply changes in the structure of outputs and in the allocation of inputs by sectors. By analogy with human beings to stress growth involves focusing on height and weight, while to emphasize development, draws attention to the change in functional capacity in physical coordination.
4. To some, economic development is the outcome of conscious and deliberate efforts involved in planning. Economic growth, on the other hand, signifies the progress of an economy under the stimulus of certain favourable circumstances, e.g., the progress achieved by the United Kingdom during the Industrial Revolution.
5. In his simple words, A. Maddison says, "The raising of income levels is generally called economic growth in rich countries and in poor ones it is called economic development". Mrs. Hicks has also expressed almost the same views and said that economic development refers to the problems of underdeveloped countries and economic growth to those of advanced countries she points out that the problems of underdeveloped countries are concerned with development of unused resources, even though their uses are well-known; while those of advanced countries are related to growth, most of their resources being already known and developed to a considerable extent.
6. According to Prof. Mehta, however, the term "growth" has quantitative significance. Growth suggests an increase in the quantity or volume of something. An increase in a country's population, national income; per capita income, consumption, saving, investment, foreign trade etc. over a period, all imply growth. In economics, however, growth strictly means an increase in real income, gross and per capita. On the other hand, development is a process of expansion, fulfilling the desire to have an increase in national income. From the above will be clear, the distinction and interface of growth and development.
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