Economic development
• Economic development is the quantitative and qualitative change in an economy.
• Economic development refers to the reduction and elimination of poverty, unemployment, and inequality with the context of growing economy.
• Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care.
• Economic development includes process and policies by which a country improves the social, economic and political well-being of its people.
• Economic development is multi-dimensional in nature as it focuses on both income and improvement of living standards of the people.
• Economic development is concerned with the happiness of public life.
• Economic development comes after economic growth. It is a positive impact of economic growth.
• Economic development also refers to:
✓ provision of sufficient and effective physical and social infrastructures
✓ qual access to resources
✓ participation of all in economic activities
✓ equitable distribution of dividends of economy.
✓ Economic development= Economic growth + standard of living
✓ It refers to increase in productivity.
✓ Indicators of economic development are:
∆ Human Development Index (HDI)
∆ Human Poverty Index (HPI)
∆ Gini Coefficient
∆ Gender Development Index (GDI)
∆ Balance of trade
∆ Physical Quality of Life Index (PQLI)
• Economic development is the ends of development.
• Achieving economic development is linked with end of poverty and inequality.
• It is more abstract concept.
• Economic development focuses on distribution of resources.
