Discuss about Economic Growth and Development Gap

Economic Growth and Development Gap

Background

Thus, the concept of economic development has always been present in the minds of the people, but the subject gained full attention after the Second World War. By the way, from the eighteenth century onwards, economists began to write directly or indirectly on the subject of economic development, but the more attention this subject received after 1945, the earlier it did not come in part. As World War II drew to a close, economists made the subject their goal for a number of reasons, and articles, research papers, dogs, and high-profile books began to appear from all over the world.

General concept

The word economic growth is now widely used. In the beginning, a common man used to say that if roads are being built in the country, buses are moving, factories are being set up and prosperity is being created in the cities, then such a situation is called economic development. Was given But technically, economic development has its own specific meaning, which will be explained later in this course.

Three terms

Reading all the material available on economic development, it seems that economists use three terms as synonyms. These three terms are: Economic Developments and Economic Growth. Economic Progress is basically the difference between these three terms. Economic evolution refers to the number of items that people use on a daily basis. Economic development means that economic evolution is very different. Economic growth refers to an increase in the production of goods and services in the country. The concept of economic development is separate from these two imaginations. Economic growth refers not only to the increase in the production or bombing of goods and services at the national level, but also to the technological and structural changes through which the production process takes place.

Synonyms

There is a subtle difference between the three terms, but this difference is not considered significant. That is why economists use these three terms as synonyms. In this event, the terms economic growth, economic development and economic evolution will be used interchangeably.

Numerous definitions of economic growth have been given by Economy Days. Let's take a brief look at some of these definite movements so that we can finally determine the meaning of economic growth.

Different Definitions

To be able to different definitions Arthur Lewis is a famous modern economist. They has defined economic growth in these words. Economic growth is actually the increase in per capita production. Another important definition is Harold F. Williamson has offered. He said that economic development is a process through which the people of a country use their available resources to increase the per capita production of goods and services. Another important definition is coined by Benjamin Higgins. According to him, "economic development” refers to the rate of growth of the country's GDP in order to achieve a higher per capita income and standard of living. These were different definitions, but the most commonly accepted ones were Maize and Baldwin (Meier and Baldwin). According to Minor and Baldwin, "economic growth is the process by which a nation's real national income grows over a long period of time."

Before we take a closer look at the definition of size and bald on, let's look at the basic words that define them. These words are action and long.

Process

Process refers to links that are interconnected to a technical organizational and sectorial structure. In other words, action refers to the interrelationship and coherence of different sectors that, through mutual unity and consensus, help each other to expand, expand and develop. The presence of a single sector and the expansion of its personal production cannot be interpreted as gentle. However, the presence of many areas and the mutual unity and deep connection between them can be called action. That is why millennial are found in economies that are broad-based. Here it would be appropriate to give the example of Japan and Kuwait. Pistachio is richer than Japan but lacks action. All of Kuwait's wealth is based on oil revenues, and no other sector is a tenth of it. Although Japan is a very poor country, it is found everywhere. Japan's economy is made up of many sectors and each sector is interdependent. One develops and the other sector supports it. So we can say that producing more oil in Kuwait, producing more gold in South Africa and producing more coffee in Brazil are out of the realm of the country. Of the country's presence so it is important that there are many sectors and they are connected to each other.

Long Time

 Maira and Baldwin consider only a country that has a long history and a steady increase in the country's real national income. Long term often means 20 to 25 years. If an action causes a temporary increase in a country's real income, then such an increase in real life cannot be called economic growth because it is quite possible that the bull will settle down for a while and grow ghee instead of increasing real income. Start coming Trade cycles can be cited here. If the head of the trade cycle is higher than the head of the stem, can its progress be called economic growth?

Now we come to the part where we talk about the middle ground. There are many groups of economists. Each group has agreed on the importance of "ownership" and long-term importance, but they have identified various issues to identify in terms of what is meant by economic development. These issues are called the criteria for economic growth.

Real Income

The term used by Mar and Baldwin and their supporters to describe economic growth is real national income. Real national income is something different from the gross national income of a country.

Explanation

As you know, the total amount of production and services produced in a country throughout the year is called Gross Domestic Product (GNP). These products are produced by gene machines and other equipment, and the cost of repairing and repairing them each year is not considered part of the national product because these costs are necessarily wasted. If they are not reserved for the accuracy of machines, etc., the practice of innate wealth cannot continue for a long time, because after a short period of time, the breakdown of machines, etc., will suspend this process.

The Effect of Prices

There is one more thing that needs to be deducted from the GDP and that is the effect of inflation. Sometimes it happens that the level of the national income seems to be very low due to rising prices. It is also a sign of happiness. The demand of realism is to remove the effect of rising prices from the gross national income. We can illustrate this with an example. If the number of Asians in a country is 100. If the average price of each item is Rs. 40, then the total national income (40x100) = 4000 rupees.