Economic development and Economic growth are similar concept but there are a lot many things which differentiate them, meanwhile they both are related with economy and economical facts and figures but the following discussion outlines the basic differences between Economic Growth and Development:
1.Growth is Single dimension Concept: Economic growth is merely a quantitative concept. It is concerned with rate of increase in national income.
2.Economic Development is Double / Multi dimension Concept: Concept of economic development is both quantitative and qualitative in nature. It is concerned with welfare of people (a qualitative aspect) along with increase in per capita income (a quantitative concept).
3.Growth Ignores Distribution of Income: Distribution of income is ignored in case of economic growth. In spite of increase in income, number of poor people may rise if the distribution of income becomes further unequal.
4.Development Considers Distribution of Income: In case of economic development, distribution of income is given due consideration. Reduction in inequality (of income distribution) is one of the principal targets of economic development inequality of income and wealth must be reduced.
5.Independent of Structural, Institutional and Technical Changes:
Economic growth may occur independent of any structural, institutional and technical changes in the economy. Associated with socio-technological Change:
Economic development is invariably associated with significant structural, institutional and technical changes in the economy. Development is a qualitative concept and relates to human development index (HDI) Gender Development Index (GDI) Human Poverty Index (HPI). Growth is a quantitative concept.
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