February 24, 2024

HPAS/Allied Mains 2022 Answer Writing Challenge Day 208: Model Answer

Question: Differentiate between Economic Growth and Economic Development? (4 marks/ 60 words)

Answer:

Economic Growth

 

Economic Development

 

Economic growth only looks at the quantitative aspect. It brings quantitative changes in the economy.Economic development brings quantitative and qualitative change in the economy.
Economic growth means an increase in real national income / national output.Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care.
Economic growth focuses on production of goods and services.Economic development focuses on distribution of resources.
Indicators of economic growth are:

  • GDP
  • GNI
  • Per capita income
Indicators of economic development are:

  • Human Development Index (HDI)
  • Human Poverty Index (HPI)
  • Gender Development Index (GDI)
  • Physical Quality of Life Index (PQLI)
Poverty and inequality may remain in economic growth.Achieving economic development is linked with end of poverty and inequality.
Economic growth is concerned with increase in economy’s output.Economic development= Economic growth + standard of living

 

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