What does Economic Development Seek? Goals

 

The main objective of economic development is focused on generating the greatest well-being in the population using the dynamization of the local economy and macroeconomic variables as a means.

However, their incorrect use can lead to the uneven development of the zones, which is a disadvantage because it creates a noticeable disproportion.

Causes of Economic Development

These are the main causes of economic development:

Economic causes

•          Access to natural and energy resources.

•          Technological resources.

•          Available workforce.

•          Purchasing power.

•          Communication and transport networks.

•          Education level.

•          Capital accumulation.

Political Causes

•          Type of government.

•          Political stability.

•          Administration of public investment.

•          Market type.

•          Corruption.

What are The Indicators of Economic Development?

The economic development of a nation can be superficially measured by analyzing a series of basic socioeconomic indicators such as GDP and IDC (key performance indicators).

But it can also be measured by other indicators such as the economically active population (EAP), per capita income (CPI), the human development index (HDI), and levels of education, health and housing:

•          The PEA refers to the group of the population that is of working age and has a job

•          The CPI indicates the average income per inhabitant in a year

•          The HDI is an indicator that is based on three basic parameters that are: life expectancy, health, education, and standard of living.

As mentioned, there are several differences between growth and economic development to highlight.

That is why we will talk a little more about these below:

•          Implications: Economic development translates into a rise in the entire social system, this with respect to wages, savings, investments, educational level, health, etc. Progressive changes in the socioeconomic structure are necessary for the results to appear. While for its part, economic growth refers to the gradual increase in the real productivity of a country.

•       Indices: Among other differences between development and economic growth, it is found that development is related to human development indices (HDI)

•          Like the index of human poverty, literacy, human poverty, etc. While growth is related to the gradual increase in all or certain components of GDP.

•        Effects: In economic development there are more qualitative and quantitative changes in the economy, but in the case of economic growth, the changes are focused on the quantitative plane.

•        Relevance: For economic development, it is more relevant to stimulate the quality of life, which is why it has different types of interrelated indicators focused on improving people's living conditions: access to education, income, health, life expectancy, etc. Economic growth is more focused on increasing capital and income in the economy, assuming that these will lead to an improvement in people's lives

•        Scope: Economic development focuses more on structural changes in the economy and the long term. Instead, economic growth does so in increasing economic productivity, which has a more short-term focus.

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