Main difference Somewhere between Economic Development together with Economic Growth.

Generally words, economic development refers to the issues of underdeveloped countries and economic growth to those of developed countries. The raising of income levels is generally called economic growth in rich countries and in poor ones it is known as economic development. But this view does not specify the underlying forces which enhance the income levels in both forms of economies. The difficulties of underdeveloped countries are involved with the development of unused resources, although their uses are well-known, while those of advanced countries are linked to growth, most of their resources being already known and developed to a considerable extent.

Actually, the terms “development and growth” have nothing to do with the sort of economy. The distinction between both pertains to the nature and Juan Pablo Carrasco Degroote narcotráfico causes of change. Both of these terms may also be explained whilst the development is a discontinues and spontaneous change in the stationary state which forever alters and displaces the equilibrium state previously existing; while growth is a gradual and steady change in the long term which comes about with a gradual increase in the rate of savings and population. This view has been widely accepted and elaborated by nearly all economists.

According to a different school of thought, “economic growth means more output, while economic development employs both more output and changes in the technical and institutional arrangements where it is produced and distributed. Growth may involve not merely more output produced from greater levels of inputs but additionally greater efficiency, either, and increase in output per unit of input. Development goes beyond this two employ changes in the composition of output and in the allocation of inputs by sectors” ;.According for some classical economists the growth is an expansion of the device in one or more dimensions without a change in its structure, and development is an innovative process leading the structural transformation of social system.

Thus economic growth is related to a quantitative sustained increase in the country’s per capita output or income followed closely by expansion in its labor force, consumption, capital, and level of trade. On another hand, economic development is a wider term. It is related to qualitative change in economic wants, goods, incentives, and institutions. It describes the underlying determinants of growth such as for instance technological and structural change. Development embraces both growth and decline. An economy can grow but it may not develop because poverty, unemployment and inequalities may continue steadily to persist due to the lack of technological and structural changes. But it is difficult to assume development without economic growth in the lack of an increase in output per capita, specially when population keeps growing rapidly. Despite these apparent differences, some economists use these terms as synonyms.

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