what is the diffrence between growth and development?
Growth is said to take place when real GDP of a country increases over a period. Increase in nominal GDP does not reflect change in purchasing power. In contrast, real GDP is inflation-adjusted and therefore, increase in real GDP over a period is taken as an indicator of growth which reflects the increase in purchasing power of people too.
Development comprises both an increase in real GDP as well as changes in demographic, social and political environment in which the country operates. A country that exhibits 10% growth in real GDP year after year, but is endowed with poor infrastructure, social backwardness, weak institutions, high mortality rate caused by malnutrition, poor living conditions and high levels of environmental damage, is growing without development.
Therefore, development necessarily includes growth, but growth does not necessarily include development.
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