Economic Development

Although it does not always happen, economic growth should bring about economic development. However, they are not the same thing. Economic development happens when policymakers and communities promote an improved standard of living. Economic development is multi-faceted and includes the development of human capital, through training and education. Economic development also means the building of critical infrastructure that includes such things as the provision of electricity, roads, security, telecommunications and public health. If a region is economically competitive, environmentally sustainable, has a mandate of social inclusion, and has provision for other needed social benefits, it can be considered economically developed.

Generally, economic growth is measure by the increase in gross national product (GNP). It can also mean the consistent increase in a nation's output of goods and services. Perhaps you are wondering how much product a nation can consume, and there lies the problem. Since the end of WW 11, western nations have been finding very creative ways to consume more and more. After all, economic growth depends on consumer spending. The mantra seems to be, use more resources, make more stuff, buy more stuff, throw the stuff away, and begin the cycle anew. This is not sustainable.

Economic development seeks to even the playing. It asks how can the have not nations be brought into the fold, and it is not an easy question to answer. This is especially true because economic growth does not have a sustainable future. The United Nations uses three indices, life expectancy, education and individual income, to define the economic development of a country.