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What is Economic Development | Definitions and Features

In the study of public sector economics, economic and social development is the process by which the economic well-being and quality of life of a nation, region, local community or individual improves according to the stated goals and objectives. In this article, What is Economic Development and what are the Definitions and Features of economic development? We are going to know this.

What is Economic Development

What is Economic Development

Economic Development is an ongoing process through which the resources available in the country are utilized more efficiently. From the point of view of policy making, economic development refers to all those efforts which are aimed at improving the economic condition and living standards of the population. The continuous increase in the national income is called ‘positive economic growth’, while the continuous decline in the national income is called ‘negative economic growth’.

Definition of Economic Development

(1) Kindle Burger – Economic development is the transformation of economic production and the technical and quantitative system that makes it possible.

(2) Paul Burn – The long-term change in the per capita production of material goods reflects economic development.

(3) O’Connor and Richardson – Sustainable improvement in the material well-being reflected in the increasing production of goods and services is economic development.

(4) Mayer and Baldwin – The process by which the number of people living below the absolute poverty line does not increase and the income statement is not more heterogeneous, which leads to a long-term increase in the country’s real per capita income is called economic development.

Myer Baldwin’s definition has become universal. This definition reveals some features of economic development.

Features of Economic Development

(A) Development is a process. Growth in the national income is the result of a number of factors. But this is not just a factor or an effort. The word ‘Process’ refers to the action of certain elements and the result of these actions is an increase in the national income.

(B) Changes in living standards are not properly assessed by significant monetary income changes in real national income. Therefore, it is necessary to base the actual national income.

(C) Long-term thinking The growth process has to be considered in a long-term context. The booms and busts in the economy are intermittent. But it is not fair to say that this has hampered development. Whether the development process is continuous or not should be decided keeping in view the trend for at least twenty five years.

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