2a. Difference between economic growth and economic development.

Economic development is a much broader concept than economic growth. Economic growth is
integral and necessary but not adequate to reach economic development. One indicator that economic
growth is a subset of a country’s economic development is that economic development is considered as
a multidimensional phenomenon. This is because is does not only focuses on the income and profit of
the people of a particular country but also it considers the improvement of the living standards of the
people. The country’s output in a particular or short span of time is a concern of economic growth, the
increase in the nation’s real output is considered here.Hence, economic growth is a short term process.
Increase in the quality of resources involving education, increase in the value of goods and services
produced by each sector of the country’s economy, and increase in the quantity of resources and
improvements of technology are the causes or the factors of the increase in a country’s level of national
output. Economic development measures all aspects of both qualitative and quantitative growth of
every citizen of a country, this creates more opportunities to the sectors of education, healthcare, and
employment because these sectors are expected to report the standard of living of the people. How
these people become wealthier , healthier , and better educated are the aspects that are measured in
economic development. Bottom line is, economic growth is majorly concerned with the output of each
department or sector of country while economic development purposely concerned not only in the
different sectors of the economy or in whole but in the people’s standard of living.

2b. Why is achievement of higher economic growth should be a priority of developing and
development economies?

Economic growth is one of the most integral indicators of a healthy economy, long term growth
of a country has a positive impact on national income and level of employment, which increases the
standard of living.Developed and developing nations aim to boost higher economic growth per year,
countries with higher population requires growth to keep up its standard of living and wealth. Countries
having low and unstable growth tend to not sufficiently its citizentry. That’s why the government of
each economy really tries to improve the standards of living and reduce poverty to achieve economic
growth but these improvements cannot occur without economic development because economic growth
alone cannot eliminate poverty on its own. Developed countries are sovereign states that have
developed economy and advanced technological infrastracture relative to other less industrialized
nations. Physical capital or infrastracture is one of the causes of economic growth, with increased
investment in physical capital e.g. factories, machineries, and roads will lower the cost of economic
activity.Developed countries own advanced infrastracture, which means it’s their asset and their
strength, if they improve more there systems and technology in infrastracture, they can surely retain
good economic growth or in a better result , higher growth in its economy. Developing countries like
the philippines and other southeast asian countries have less developed industrial base but in the
process of innovation and improvements. These countries are rich in natural resources, and the
discovery of these may boost economic growth. Natural resources may include oil, mineral deposits,
the country’s land, water, forests, and natural gas. These countries are taking measures to balance the
supply and demand for scarce resources to avoid depleting them. With the depletion of natural
resources, economic growth for developing countries is impossible to achieve.
2c. What is meant by Sustainable Development?

Sustainable development is an approach to economic planning that attempts to foster economic

growth while preserving the quality of the environment for future generations. According to wikipedia
is the organizing principle for meeting human development goals while simultaneously sustaining the
ability of natural systems to provide the natural resources and ecosystem services upon which the
economy and society depend. While we are at the stage of achieving economic growth and
development , we are still obliged to think of how our choices and present actions affect the
future.While developing and developed countries aim a long term growth which has a positive impact
on national income and level of employment which increases the standard of living of the people living
in those countries, these countries are obliged to take care of the environment while making and doing
their measures.

2e. Measuring economic development includes:

GNP – Gross National Product measures the economic output of a given nation. GNP can be used to
measure the increase in real national income over a given period of time.
PCRI – Per Capital Real Income is a measurement of income which also factors in population.
PQLI – Physical Quality of Life Index is a measurement of the most basic needs of the people.It factors
in a wide range of indicators such as health, education, water conditions, nutrition and sanitation.
PQLI is determined by taking 3 measurements:
1. Infant Mortality Rate (IMR)
2. Life Expectancy at age on
3. Literacy rate ; averaging these 3 factors giving equal value to each

HDI – Human Development Index is a quality of life index prepared by the United Nations
Development Program.It is a composite index of life expectancy, adult literacy and years of schools.
Human Capabilities – is the measurement of freedom of choices.
Relavent Factors:
1. Free from starvation
2. Free from hunger
3. Free from under nourishment
4. Free participation