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Does Economic Growth Lead to Economic Development?

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Meta Description: growth in economic development reflects in the population of a country. If the population size is managed well, it will benefit the country general development.

As obvious as this topic is, it comes in many forms. For formality, yes, economic growth leads to economic development. The main discussion here should be how? The thing is, the terms economic growth and economic development are synonymous; they can barely exist without each other.

Economic growth works as the agent that waters the ground for economic development to thrive – without a growing economy, there is hardly any kind of development, not even economically.

The kind of developmental change that comes with economic development is very obvious, it is not hidden. Although it can be measured by some indicators of economic development, the results are still very much visible. Later in this article, we will discuss some signs of economic development and how it is propelled by economic growth.

But note, that economic development can come in any form depending on the type of society you are in. We mean, while some people use infrastructural development as a benchmark to judge the extent of economic development of a country, others may lay more emphasis on the living standard, and the intellectual property of the occupants.

Signs of Economic Development as Propelled by Economic Growth

1. Increased Purchasing Power

Every country has a way of ranking their citizen’s purchasing power; they take this method very seriously hence, always constantly monitoring it. Sometimes, they refer to it as the “living standard index.” This is where they study what their citizens buy, and how they buy it. So, when a country experiences economic growth, it is easily reflected in its citizens’ buying patterns: it is bound to increase.

2. Growth in Income

It is also called per capita income. This is one of the major indicators of economic development and is propelled by economic growth. When a country’s economy is bullish, the working population are favoured. This positive trend is easily reflected in every employee’s take-home pay.

3. High Life Expectancy

Life expectancy in a country explains the extent of economic development in the country. The higher the economic development, the higher the life expectancy. It is no surprise that most of the countries with the highest life expectancy rate are economically developed countries. Let’s take a  look at some of them: the top five countries with the highest life expectancy rate.

• Hong Kong - 85.29 years.

• Japan -   85.03 years.

• Macao -              84.68 years.

• Switzerland -     84.25 years.

• Singapore -        84.07 years.

Source: World Ometer

4. Infrastructural Development

Although not every country would like to associate this with a type of economic development. This is because sometimes, a country can have all the skyscrapers and glass houses without a happy population, we have seen that in a country like South Korea, India, and North Korea.

On the contrary, infrastructural development is classified as a strong sign of economic development especially if they are built by the private sector. This is because it only takes healthy, wealthy people to erect magnificent architecture as seen in countries like the UAE.

Conclusion

Countries, through their various governments, must thrive to encourage policies backed by the country’s laws to give room for economic development in every sector of their economy.

Since economic growth rarely happens without government involvement, they (the government) should engage in economic development conferences and must include private sector participation.

With these and more strategies in place, the propensity of getting the needed economic development through visible economic growth will be very possible


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