ECONOMIC GROWTH AND ECONOMIC DEVELOPMENT
Economic growth and economic development are both a measurement of a favorable change
within a nation. Prior to the comparison between the two, let us first know their individual meanings.
Economic growth is defined as the process by which a nation’s wealth increases over time. In other
words, it is the rise in the real national income or national output. Economic development, on the other
hand, refers to the creation of wealth from which community benefits are realized. It could also be
stated that it indicates an improvement in the quality of life and living standards.
At this point, referring to the aforementioned definitions, it seems the two are quite similar, but
in actuality growth and development are not synonymous. One of the contrasting matters between
them is that economic growth, like living beings, is a vertical upward movement in a country and it is
measured by Gross Domestic Product (GDP), while economic development, like sandwich spreads, is a
horizontal movement in a country and it is measured by Human Development Index (HDI). Additionally,
the former does not say much about the actual welfare of the people in a country, unlike the latter
where it measures the welfare and well-being of the country especially that it isn’t just limited to
monetary terms, but also other indicators such as education, health and social. Furthermore, despite the
variation between the two, growth is capable of creating a way for development to take place since it is
a result of higher income, profits and fiscal dividend which would then contribute to the increased
quality of life and standard of living of individuals. However, growth can also hinder development. In
contrast with the previous view that it is a positive matter collectively or as a big picture, individually as
you look into the smaller scale not everyone are benefited by it since unequal distribution of wealth
exists and dominance occurs. Therefore, growth indeed is a necessary but not sufficient condition of
development.
In conclusion, I can say that economic growth somehow has a shallow view on the national
improvement, whereas economic development has a deep perspective regarding the same matter that
it abounds the betterment of the majority rather than the few.