ECONOMIC DEVELOPMENT

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ECONOMIC DEVELOPMENT

Meaning

economic development or economic progress has been defined in two ways  According to one definition economic growth means growth of national income  of  he country. In other words it implies an increase in the net national product  in a  given period. say a year Some economists consider this definition as inadequate  and unsatisfactory. Tiles argue that even if the national income goes up. the general  standard. of living may go down. This can happen if population of the country is  rising more rapidly than the growth of the national income. If the national income    rising at the rate of 2 per cent and population is increasing at the rate of 3 per   cent the  level of Living of the people is bound to go down. This is  because on   account of  population increasing at  a HighBeam rate than the  growth t>the national  incorrect per capital income falls and when   per capital income goes down we   cannot call it  economic growth. The  country will have  registered economic growth  only if per capital income has gone up  and this will happen only if the national  income grows at a higher rate than the growth  rate of the population.

Thus. a better definitions of economic development will he to base it on per  capital   income. According to this definition economic growth means the increase in per capital income of the country at constant prices. higher per capital income would  finical that people arc better off and enjoy i higher standard of living, and to raise the level of living of the people is the main objective of economic development.   u the

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ECONOMIC DEVELOPMENT