Economic growth and development

“In the world we live in economic growth doesn’t actually mean collective economic growth, it is actually code for selective economic growth, which means, exclusive prosperity of a select group of people.”

~Victor Meledge Ade

Though ‘economic growth’ and ‘economic development’ sound similar and start with the same word, there is a vast difference when it comes to how they exercise their role in development. First and foremost, economic growth is a quantitative concept, and economic development is qualitative in nature.

Economic Growth:

Economic growth is measured by the increase in the monetary value of all the goods and services produced in the economy during a time period. It gives a disclaimer on the increase of the business transactions that take place in the economy in a given time period.

It can be measured by the increase in the aggregate market value of additional goods and services produced derived through the economic concepts such as GDP and GNP.

Economic growth is narrower in concept as compared to economic development.

Economic Development:

Economic development is the process through which the overall health, well-being, and academic level of the general population of a nation improves. It also refers to the increase in production due to the advancements of technology.

Since it is qualitative in nature, it is determined by the Human Development Index (HDI) measuring the improvement in the quality of the life of people. Now, the quality of life of countrymen is based on many parameters like newly created job opportunities, technological advancements, standard of living, living conditions, per capita income, quality of life, GDP, etc.

Economic Growth	Economic Development
Quantitative in nature.	Both quantitative and qualitative.
It is the increase in the monetary growth of a nation during a particular period of time.	It is the overall development of the quality of life in a nation, including economic growth.
Thus, it is narrow in concept and more exclusive.	It is Broad in concept and more inclusive.