Economic Development and Economic Growth (Full Discussion)

Economic Development and Economic Growth (Full Discussion) – Economic development is a process of increasing total and maximum income, the income per capita of the population by taking into account increasing population as well as fundamental changes in the economic structure of a country and income distribution for the population over time the long one.

Economic Development and Economic Growth (Full Discussion)

In summary, economic development can also be interpreted as a process that causes the per capita income of a population in a country to increase in the long term. There are three very important things related to economic development, namely:

Development as a process

Which means that development is a stage that must be lived and passed by every society or nation.

For example: humans from birth will not immediately become great, but to become great many stages of growth that must be passed.

Likewise, the people or residents of a country must undergo stages or processes of development in order to obtain prosperity, prosperity and peace.

Development as an effort to increase per capita income

The point is that development is one of the positive actions or an effort that must be carried out by every country in increasing per capita income. Therefore, the participation of the community, government, as well as all elements in a country to actively participate and contribute in a development process is very much needed.

The increase in per capita income must take place in the long term

In an economy can be said to be developing if the income per capita in the long term is more likely to increase. But that does not mean that per capita income must always increase continuously.

For exampleIf in a country there is a natural disaster or other disaster, then the country will experience a decline in the economy. But the most important thing is that activities or businesses in developing their economy on average always increase every year.

This can also be done through investment, management, use of technology, skill enhancement, knowledge enhancement, and organizational capacity enhancement.

In economic development can not be separated from economic growth or economic growth, where economic development encouraging economic growth, and vice versa, in economic growth it can facilitate a development process economy.

As for what is meant by economic growth according to Boediono is a process of increasing output per capita continuously in the long run.

according to Adam Smith Economic growth is characterized by population growth and total output growth. Three things that affect the output growth to be achieved are natural resources, labor and the amount of inventory.

One indicator of success in economic development is economic growth. The higher the economic growth, the higher the distribution of social welfare, although there are other indicators, namely the distribution of income.

The differences between the two are:

Success in economic growth is usually quantitative. Which is an increase in income standards and the level of production output produced. While the success in this case is more qualitative, not only the increase in production. However, with changes in the allocation of inputs and production structures in various sectors of the economy.

From the explanation above, it can be concluded that economic development is a continuous process that result in a change in the economy for the better in various fields where the end result is an increase in income per capita.

And what is meant by economic growth is a process of increasing output per capita which is carried out continuously in the long term.

This is the discussion about Economic Development and Economic Growth (Full Discussion), Hopefully it can make a positive contribution to the readers and of course useful. Thank you so much