Economic Growth and Development
{draw:frame} Introduction The world has been divided into developing, under-developed and developed countries. And the race has been always to move from under-developed to developed counties. But the confusion lies herein in this process of movement from the under-developed/developing countries to developed countries. When should a country consider itself to be moving in the right direction i.e. towards its goal of being a developed country? Surveys are made and reports being churned out that state the economic growth of a nation. Does the rate of this economic growth a true indicator in this regard? If that is true why is it then that even in the 21st century decades after the industrialization and years after globalization the proportion of developed countries to under-developed countries is still wide enough? The answer lies in the economic development of these countries. If the gross domestic product or national income of the country is increasing then it implies that the country is experiencing an economic growth, which in fact is a positive symptom. But can we equate this economic growth with the country’s development? Does economic growth necessarily and obviously lead to economic development? The answer is ‘no’, because economic growth and economic development are not synonymous and economic growth does not automatically lead to economic development. That’s the reason why despite a growth in GDP in the under-developed or developing countries they have still not reached the level of developed ones in several aspects. The objective of this paper is to understand these two concepts and analyze their factors, the factors that are widening the gap between growth and development. Also an attempt would be made to understand the strategies through which economic growth can be converted to economic development of a nation. Relevance of understanding The world first witnessed mercantilism, then industrialization and then colonization followed by
References: ‘Modern Economic Theory’ by K. K. Dewett ‘Economics’ by Samuelson and Nordhaus Internet