Book contents
- Frontmatter
- Contents
- List of Figures and Tables
- Abbreviations and Measures
- Preface to the Fourth Edition
- PART I PRINCIPLES AND CONCEPTS OF DEVELOPMENT
- 1 Introduction
- 2 The Meaning and Measurement of Economic Development
- 3 Economic Development in Historical Perspective
- 4 Characteristics and Institutions of Developing Countries
- 5 Theories of Economic Development
- PART II POVERTY ALLEVIATION AND INCOME DISTRIBUTION
- PART III FACTORS OF GROWTH
- PART IV THE MACROECONOMICS AND INTERNATIONAL ECONOMICS OF DEVELOPMENT
- PART V DEVELOPMENT STRATEGIES
- Glossary
- Bibliography
- Index
2 - The Meaning and Measurement of Economic Development
from PART I - PRINCIPLES AND CONCEPTS OF DEVELOPMENT
- Frontmatter
- Contents
- List of Figures and Tables
- Abbreviations and Measures
- Preface to the Fourth Edition
- PART I PRINCIPLES AND CONCEPTS OF DEVELOPMENT
- 1 Introduction
- 2 The Meaning and Measurement of Economic Development
- 3 Economic Development in Historical Perspective
- 4 Characteristics and Institutions of Developing Countries
- 5 Theories of Economic Development
- PART II POVERTY ALLEVIATION AND INCOME DISTRIBUTION
- PART III FACTORS OF GROWTH
- PART IV THE MACROECONOMICS AND INTERNATIONAL ECONOMICS OF DEVELOPMENT
- PART V DEVELOPMENT STRATEGIES
- Glossary
- Bibliography
- Index
Summary
Scope of the Chapter
This chapter discusses the meaning, calculation, and basic indicators of economic growth and development; the classification of rich and poor countries; the price-index problem; the distortion in comparing income per head between rich and poor countries; adjustments to income figures for purchasing power; alternative measures and concepts of the level of economic development besides income per head; the problems of alternative measures; and the costs and benefits of economic development.
Growth and Development
A major goal of poor countries is economic development or economic growth. The two terms are not identical. Growth may be necessary but not sufficient for development. Economic growth refers to increases in a country's production or income per capita (Box 2-1). Production is usually measured by gross national product (GNP) or gross national income (GNI), used interchangeably, an economy's total output of goods and services. Economic development refers to economic growth accompanied by changes in output distribution and economic structure. These changes may include an improvement in the material well-being of the poorer half of the population; a decline in agriculture's share of GNP and a corresponding increase in the GNP share of industry and services; an increase in the education and skills of the labor force; and substantial technical advances originating within the country. As with children, growth involves a stress on quantitative measures (height or GNP), whereas development draws attention to changes in capacities (such as physical coordination and learning ability, or the economy's ability to adapt to shifts in tastes and technology).
- Type
- Chapter
- Information
- Economic Development , pp. 15 - 52Publisher: Cambridge University PressPrint publication year: 2005