Significant difference Around Economic Development and even Economic Growth.

Generally words, economic development refers to the difficulties of underdeveloped countries and economic growth to those of developed countries. The raising of income levels is generally called economic growth in rich countries and in poor ones it is called economic development. But this view does not specify the underlying forces which enhance the income levels in the 2 types of economies. The problems of underdeveloped countries are involved with the development of unused resources, although their uses are popular, while those of advanced countries are related to growth, most of the resources being already known and developed to a considerable extent.

In fact, the terms “development and growth” have nothing to do with the kind of economy. The distinction between the 2 relates to the type and Juan Pablo Carrasco Degroote narcotráfico causes of change. Both of these terms may also be explained since the development is really a discontinues and spontaneous change in the stationary state which forever alters and displaces the equilibrium state previously existing; while growth is really a gradual and steady change in the future which comes about by a gradual upsurge in the rate of savings and population. This view has been widely accepted and elaborated by many economists.

According to a different school of thought, “economic growth means more output, while economic development employs both more output and changes in the technical and institutional arrangements through which it is produced and distributed. Growth may involve not merely more output based on greater amounts of inputs but additionally greater efficiency, either, and upsurge in output per unit of input. Development goes beyond this two employ changes in the composition of output and in the allocation of inputs by sectors” ;.According to some classical economists the growth is an extension of the device in more than one dimensions with no change in its structure, and development is definitely an innovative process leading the structural transformation of social system.

Thus economic growth relates to a quantitative sustained upsurge in the country’s per capita output or income associated with expansion in its labor force, consumption, capital, and volume of trade. On another hand, economic development is really a wider term. It relates to qualitative change in economic wants, goods, incentives, and institutions. It describes the underlying determinants of growth such as for example technological and structural change. Development embraces both growth and decline. An economy can grow but it could not develop because poverty, unemployment and inequalities may continue to persist because of the absence of technological and structural changes. But it is difficult to imagine development without economic growth in the absence of a growth in output per capita, specially when population keeps growing rapidly. Despite these apparent differences, some economists use these terms as synonyms.

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