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    Hey, I'm trying to revise OCR 2886 and was wondering if anyone could help with the difference between growth and development? (Haven't got far, I know!) Would this be a good explanation?

    Economic growth is the increase in an economy’s productive potential, as measured by sustained increases in GDP. It shows an increase in material living standards, whereas economic development involves wider quality of life issues, such as literacy rates and life expectancies. Economic growth is a necessary (but not sufficient) condition for economic development.

    Thanks!
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    Well economic development can be defined in many ways, some would define it as economic growth!

    But what you've put is probably the general consensus
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    (Original post by keenbean)
    Hey, I'm trying to revise OCR 2886 and was wondering if anyone could help with the difference between growth and development? (Haven't got far, I know!) Would this be a good explanation?

    Economic growth is the increase in an economy’s productive potential, as measured by sustained increases in GDP. It shows an increase in material living standards, whereas economic development involves wider quality of life issues, such as literacy rates and life expectancies. Economic growth is a necessary (but not sufficient) condition for economic development.

    Thanks!

    conomic development is the development of economic wealth of countries or regions for the well-being of their inhabitants. It is the process by which a nation improves the economic, political, and social well being of its people. From a policy perspective, economic development can be defined as efforts that seek to improve the economic well-being and quality of life for a community by creating and/or retaining jobs and supporting or growing incomes and the tax base.
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    Growth is simply measurement of GDP.
    Development is measured by HDI.

    I think if you put it this way, growth is a measurement of output and production, so real GDP is the main measurement of growth. It is a limited and one-dimensional measure.

    Development is a more complex measure, measured using HDI (Human development index), GDP is part of the measure but it also includes adult literacy and life expectancy. So it is multidimensional.

    However HDI, even though it is multidimensional, is still pretty limited, as it does not take everything that concerns the economy into account. Perhaps 20 years ago this would have been the perfect measure, but the environment and crime are big issues today and we need to use a more elaborate measure for development.

    GPI and ISEW (Genuine Progess Indicatior and Index of Sustainable Economic Welfare) do take these into account, with ISEW actually having the formula

    ISEW= Standard consumption+merits like services and expenditure - demerits like harmful externalities or depreciation of national capital.
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    Development is measured by outcomes ie development occurs when key indicators of human well-being improve. What are those indicators?

    Growth is just one dimension of development. A reduction of poverty, inequality and unemployment and economic growth within a growing economy points to successful development outcomes.

    Prof Dudley Seers offers a well-known definition. He defines development as the reduction and elimination of poverty, inequality and unemployment within a growing economy.

    An alternative definition is offered by Professor Michael Todaro who is concerned with outcomes and sees three objectives of development:

    * Producing more ‘life sustaining’ necessities such as food shelter & health care and broadening their distribution
    * Raising standard of living and individual self esteem
    * Expanding economic and social choice and reducing fear

    For more see http://rapidrevision.co.uk/economics...ent-economics/
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    Thanks everyone, very helpful
 
 
 
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