Increase in absolute and per capita real GNP do not connote a higher level of economic development, if
[UPSC Civil Services Exam – 2018 Prelims]
(a) industrial output fails to keep pace with agricultural output.
(b) agricultural output fails to keep pace with industrial output.
(c) poverty and unemployment increase.
(d) imports grow faster than exports.
- Economic growth refers to the expansion of a nation’s real national income or output.
- Economic development, on the other hand, signifies an enhancement in the overall quality of life and living standards within a society. This includes improvements in various aspects such as literacy levels, life expectancy, and access to healthcare.
- When a country undergoes economic growth accompanied by positive changes such as a decrease in poverty and unemployment rates, a reduction in income and wealth inequality, an increase in literacy rates, and advancements in health and hygiene, it can be considered as experiencing economic development. In such cases, the quality of life is improved through various socioeconomic improvements.