Social Sciences, asked by tamanna1859, 1 year ago

difference between economic development and economic planning

Answers

Answered by sami91
6
Hey there !

The fundamental differences between economic growth and development are explained in the points given below:

Economic growth is the positive change in the real output of the country in a particular span of time economy. Economic Development involves a rise in the level of production in an economy along with the advancement of technology, improvement in living standards and so on.

Economic growth is one of the features of economic development.

Economic growth is an automatic process. Unlike economic development, which is the outcome of planned and result-oriented activities.

Economic growth enables an increase in the indicators like GDP, per capita income, etc. On the other hand, economic development enables improvement in the life expectancy rate, infant mortality rate, literacy rate and poverty rates.

Economic growth can be measured when there is a positive change in the national income, whereas economic development can be seen when there is an increase in real national income.

Economic growth is a short-term process which takes into account yearly growth of the economy. But if we talk about economic development it is a long term process.

Economic Growth applies to developed economies to gauge the quality of life, but as it is an essential condition for the development, it applies to developing countries also. In contrast to, economic development applies to developing countries to measure progress.

Economic Growth results in quantitative changes, but economic development brings both quantitative and qualitative changes.

Economic growth can be measured in a particular period. As opposed to economic development is a continuous process so that it can be seen in the long run.

Hope it helps you !
Answered by sourasghotekar123
0

Answer:

Difference between economic development and economic planning.

Explanation:

  • The term economic development and economic planning are kind of similar but this two concepts are different.
  • Economic development is qualitative concept.
  • Economic development refers to the process by which the overall health, well being and academic level of the general population of a nation improves. It also refers to the improved production volume due to the advancements of technology.
  • It is the qualitative improvement in the life of the citizens of a country and most appropriately determined by the human development index.
  • It is a long term process.
  • It is also applicable to developing economies.
  • Economic planning is a resource allocation mechanism based on  computational procedure for solving a constrained maximization problem with an iterative process for obtaining its solution.
  • For example- Japan is the most notable example of economic planning in a capitalist framework, government and industry cooperate closely in planning patterns of capital investment, research and development and export strategies.
  • The objectives of economic planning is- there is equal distribution  of resources, the goals set are completed within specific period of time, increase the production and employment and also reduce the population growth.

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