Learn what is economic development definition and the process employed in capital, literacy and growth to improve social well being.
What is Economic Development Definition
Economic development refers to quantitative and qualitative changes that communities undergo in order to improve the lives of their members. Through economic development, communities are able to improve quality of life, health and standards of living in a certain area. It involves sustained actions of policy makers. The areas involved in economic development include the following:
Human capital
All countries seek to achieve the best economic growth. In the economic development process, policy makers make concerted efforts to better people capital in a certain area. This leads to regional competitiveness in terms of people capital. For the policy makers to improve the output of people capital, they need to put necessary measures in place. This will lead to the development of adequate health facilities. People need good health services and other social amenities that they deserve.
Literacy
In order to achieve economic growth and development, nations take different measures to ensure the level of ignorance is reduced. Education needs improvement for the betterment of the community. Some of the measures put in place to improve the level of literacy include setting up of schools which range from primary schools to universities. Governments also establish colleges set up to ensure people are able to access different levels of education. Such measures will equip them with necessary skills to tackle different challenges in modern life.
More on Economic development meaning
Basically, economic development is a process where the nations put in place policies that will help them to achieve political, economic and social well-being of citizens. In political well-being, nations put in place measures to ensure there is rule of law in the nation. All the citizens must respect the law. The economic well-being involves creation of fair opportunities. Citizens can therefore pursue different business operations and compete favorably.
The Meaning of Economic Growth
Check out the meaning of economic growth covering its indicators including gross domestic product, money supply, consumer price index and more.Two main factors namely, economic development and growth determine the economic health of any country. So what is economic growth?
It is usually indicated by the increase in the product of that particular country. The GDP is simply an economic model that is indicative of the country value of output. Before embarking on the indicators of such growth, it’s important to have a look at its definition. It speaks to an increase in an economy’s capacity to produce more goods and services with respect to a certain period and another. Another viable definition is as follows: A positive change in production/output of an economy/country. The following indicators are vital for measuring economic development:
Economic indicators
An indicator refers to anything employed in predicting future economic or financial trends. There are several economic indicators, but the major ones include; gross national product, supply of money, consumer price index, producer price index, and consumer confidence survey. Others are improved standard of living human capital.
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