How sustainable development is help in Economic development?
Answers
Answer:
Sustained growth can help in development in several ways:
Lifts per capita incomes and raises people out of extreme poverty
Increased per capita GDP/GNI gives households and businesses greater financial resources to save (see the Harrod Domar growth model)
Creates new jobs providing a flow of incomes for people in work
Higher incomes can also reduce income and wealth inequality
Faster economic growth generates higher profits which can then be reinvested – promoting increased productivity and capacity
Growth can accelerate changes in patterns of production e.g. a shift away from a dual economy towards investment in manufacturing and services such as business services and tourism
Economic growth can generate higher tax revenues for the government – providing more funds to finance public and merit goods and welfare spending.
Explanation:
Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs