Economic Development

By: EconomyWatch   Date: 30 June 2010

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Development of economic wealth of regions or countries to ensure well being of inhabitants is known as economic development. This can help in improving quality of life and economic well-being for a community. It can be done by creating and retaining jobs and by growth and support of incomes.

There is a difference between economic development and economic growth. Economic development is improvement in various indicators like life expectancy, literacy rates, and poverty rates. Whereas economic growth is increase or growth of a measure of gross domestic product, real national income, or per capita income. GDP is a national welfare measure which does not account for freedom, leisure time, social justice, or environmental quality. All these are critical aspects for ensuring high standard of living.

Areas for economic development
Economic development encompasses government's role in ensuring sustainable growth, price stability, and high employment. Methods used by a government for this purpose include trade policies, tax policies, monetary policies, fiscal policies, and regulation of financial establishments.

Economic development also includes infrastructure projects like construction of highways, affordable housing, K-12 education, parks, and crime prevention. Third category of economic development involves job creation and retention through marketing, small business development, business retention, real estate development.

Economic developers or economic development professionals
Economic developers are a part of a specialized and highly professional industry. They have dual role of leading policy-making efforts, and to ensure policy implementation through specific programs and projects.

Economic growth
Gross domestic product or GDP is used to understand strength of a country's economy. In terms of continents, North America experiences slow yet stable growth. South America experiences high economic growth followed by a recession, though of late it has moved towards stabilization. Africa comprises countries with low economic strength like Zimbabwe, and also countries with growing economies, such as Angola.

European countries achieve economic growth in a stable manner. Asia also has its fair share of rapidly growing economies such as India and China. Moderate growth is experienced by countries in Oceania. An exception has been Vanuatu in Oceania, where remarkable growth has been experienced.

 


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