Economic Development

Economic development is a broad, multidimensional process that improves people's well-being and expands their choices and freedoms. It is closely related to, but distinct from, economic growth, which is simply an increase in real output (real GDP) over time. Growth is necessary but not sufficient for development: a country can grow richer on average while large parts of its population see little improvement in health, education, or living standards.

Growth versus development

Economic growth measures the quantity of output. Economic development measures qualitative improvements in living standards—rising incomes, better health and education, reduced poverty and inequality, greater political and economic freedom, and environmental sustainability. Development, as economist Amartya Sen argued,