Question

is it possible to achieve hugher evonomic growth without development? explain your answers by citing some examples.

Answer 1

Ans) First lets understand the difference between economic growth and economic development.

Economic growth is increase in GDP. It shifts PPC outward and can be a result of increased labour force, discovery of new natural resource etc.

Economic development is the well being of citizens of a country. It can be measured by real per capita income, HDI etc.

Yes, it is possible that there is economic growth without economic development. It can happen when there is huge polarisation between the rich and poor. When there is unequal distribution of wealth, poor education and health facilities.

An example of this is Indonesia. Indonesia has good economic growth rate but it has poor economic development. There is huge gap between the rich and the poor. Indonesia is 16th largest economy in the world in terms of nominal gdp but ranks 111 in HDI.