Economic Development

Economic Growth vs Economic Development

Increase in real GDP over time.
Historically, economic growth was considered to directly lead to economic development.

A multidimensional concept involving a sustained increase in living standards that implies higher levels of income and thus greater access to goods and services, better education and health, a better environment to live in as well as individual empowerment.
Development was formerly measured traditionally using real GDP with the understanding that increases in income lead to development.
- However, now we understand that access to food, water, shelter, education and healthcare might not necessarily become accessible, and especially not equally so, with increases in average income.

Refers to the degree to which the current generation is able to meet its needs today but still conserve resources for the sake of future generations.
- This ensures that the ability of future generations to also meet their own needs is not compromised.
The United Nations have developed an important guideline for sustainable development called the Sustainable Development Goals (SDGs).

Poverty creates an unsustainable relationship between people and natural resources.
Typical unsustainable practices are deforestation, overhunting, land degradation, or pollution.
- Plastic pollution due to mismanaged plastic waste is one of the most common types of pollution.
People that deal with poverty are more concerned with food, water, and shelter than sustainable practices.

Unsustainable development affects the poor the most.
- Many of the poorest areas in the world live in vulnerable environments such as low coastal areas, floodplains, rainforests and arid regions.
- As climate change continues, these populations are more vulnerable to extreme weather conditions such as floods, monsoons, typhoons, hurricanes and droughts.

Developed countries must make changes to reduce carbon emissions and natural resource reliance so the poorest countries can develop.
- Historically, developed countries have created huge emissions through industrialization, yet now developing countries are not given the same opportunities to do so due to a global need to reduce emissions, leading to inequity.

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