A country has many resources and there are many people whose needs are to be completed. This factor is a concern for economic development and economic growth. Let’s see what they are.
Economic Growth
Economic growth refers to the quantitative increase in the economy. This means that if a country has an increase in any quantitative or anything that can be recorded in terms of numbers and scaling, it is referred to as economic development.
Economic Development
Economic development refers to the increase in qualitative terms. It not only deals with economic growth but also the qualitative aspect of the economy. Economic development is a broader concept since it includes economic growth as an aspect in it.
What is the Difference between Economic Growth and Economic Development?
When we speak about economic growth we refer to it as a narrow concept, because it only has the numerical aspect related to it. Whereas economic development is a broader and vast concept because it not only deals with the numerical concept but also the qualitative ones. It does not only deal with the specific amounts of certain things but also the quality of the production.
Economic growth is a unidirectional concept. It means that the concept is concerned with only one direction of the aspect whereas economic growth is multidimensional. It means that it does not consider just one factor. It has several branches and interests which need to be completed for economic development to be considered done.
Apart from this, economic growth is an automatic action. It means that it happens on its own. It does not need the involvement of economic development to increase. But for economic development to increase according to quality, economic growth is compulsory to occur. This happens because economic growth is a small yet significant role that it plays in economic development.
When anything is increased in production, it comes under economic development, but when the focus is highlighted on certain quantitative aspects like the standard of living, this is referred to as economic development.