Economic development: UPSC Daily Important Topic | 28 December 2021

Economic development

• Economic development is the quantitative and qualitative change in an economy.

• Economic development refers to the reduction and elimination of poverty, unemployment, and inequality with the context of growing economy.

• Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care.

• Economic development includes process and policies by which a country improves the social, economic and political well-being of its people.

• Economic development is multi-dimensional in nature as it focuses on both income and improvement of living standards of the people.

• Economic development is concerned with the happiness of public life.

• Economic development comes after economic growth. It is a positive impact of economic growth.

• Economic development also refers to:

✓ provision of sufficient and effective physical and social infrastructures

✓ qual access to resources

✓ participation of all in economic activities

✓ equitable distribution of dividends of economy.

✓ Economic development= Economic growth + standard of living

✓ It refers to increase in productivity.

✓ Indicators of economic development are:

∆ Human Development Index (HDI)

∆ Human Poverty Index (HPI)

∆ Gini Coefficient

∆ Gender Development Index (GDI)

∆ Balance of trade

∆ Physical Quality of Life Index (PQLI)

• Economic development is the ends of development.

• Achieving economic development is linked with end of poverty and inequality.

• It is more abstract concept.

• Economic development focuses on distribution of resources.