Economic Growth and Economic Development of Countries are technically different concepts
Economic Growth is the Increase in Products and Services of a Nation measured and generally compared against the previous calendar year. The Variable par excellence that measures Economic Growth is the GDP ( Gross Domestic Product ), which is expressed in pecuniary (money) figures.
It is logical to imagine that the higher the GDP, the greater the Social Well-being of the Nation. Now, there is also what we call GDP Per Capita, that is, we divide the numerical value of GDP by the number of inhabitants of the Country, it is transcendental to carry out this exercise to prevent the population increase from distorting the behavior that we assume as the real situation of GDP.
Reviewing the statistical variables constituting GDP, we speak of greater Consumption, greater Investment, Execution and Control of Public Expenditure (remember that Current Expenditure is different from Infrastructural Expenditure), plus the optimal relationship between Exports and Imports.
Economic Development, on the other hand, is a concept aimed at the Quality of Life of Citizens, that is, the Level of Education, Health, Services, Security, and Technological Increase, all of this aiming at the affordability of all inhabitants at each point stated in the Development concept.
In order for Economic Development to exist, it is necessary first to increase the Country’s Wealth, that is, the GDP, therefore Economic Growth comes first and then gives way to Economic Development.
Guaranteed the interannual increase of the GDP we are consolidating Economic Growth, under this premise the possibility of achieving the Economic Development of the Region, that is to say, “The State of Civic Happiness” gains more strength. In this we must sharpen the pencil, if the GDP grows and we bet on Economic Development we must observe in daily reality the salary increase over the Cost of the Basic Food Basket (Indigence) and of the Total Basic Basket (Poverty) of a typical family This is a process where more and more families are exceeding their income line based on their work efforts to achieve economic and financial satisfaction.
There are Countries with Economic Growth but not Economic Development, this is due to the enormous asymmetry between those who have the most and those who have the least. Economic Development guides us accidentally to the “Social Ascendancy”, that is to say, that all the Socio-Economic Levels must grow towards a better state of Public Welfare.
Many countries are called “Developing” and the phrase is correct, since having economic growth, this wealth is not well distributed in society.
On the other hand, there are Countries with Economic Growth and Economic Development at the same time, we can say that these Nations have worked perfectly on the level of equal opportunities for all, with which we see a state of Well-being and Social Happiness verified.
Conclusion: responsibility; -as we said- for the Growth and Development of a Country falls on the three Economic Agents, namely… State, Companies, and Family, these agents must contribute ethics and morality in their actions, we already mentioned in previous notes that “Morality is the Ethics in Motion”, landing it on each Actor this would be:
- State: under an axiological basis, carry out a correct and harmonious Distribution of Wealth, before the generation of Job Sources via National and Foreign Investments (consider the reduction of the tax pressure at the Nation, Province, and Municipalities levels to collaborate in balanced way with the decrease in the Cost of Living Citizen).
- Companies: claim a healthy “Reasonable Income”, complying with their employees the correct payment of salary scales and other items agreed by the industry.
- Families (workers): raising their work culture, their knowledge, and improving themselves to achieve the best management result.
If any of these “three legs of the table” fail, there will be no possible public welfare.