Concept of economic development

Concept of economic development:

Economic development is the development of the economic wealth of countries, regions or communities for the well-being of their inhabitants. 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.

There are significant differences between economic growth and economic development. The term "economic growth" refers to the increase (or growth) of a specific measure such as real national income, gross domestic product, or per capita income.

The term "economic development," on the other hand, implies much more. It typically refers to improvements in a variety of indicators such as literacy rates, life expectancy, and poverty rates. The economic growth of any specific measure is not a sufficient definition of economic development.

According to Arthur Lewis, “Economic development means the increase in per capita production.”

According to the World Bank (WDR 1991), “Economic development is defined as a sustainable increase in living standards that encompass material consumption, education, health, and environmental production.”