economic growth and development

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  • Created by: nikoamiko
  • Created on: 15-04-15 12:33

discuss whether high rates of EG may alone enable

There is a divergence between economic growth and sustainable development, the former counts the growth in real GDP , but does not include the equal destribution of income for households, however, economic growth is a necessary condition for development to happen, growth results in rising national income, and therefore, additional national income will be created to fund in health and education, which will rise human capital and people`s well being.

The Harrod Domar model states that incomes and savings lead to investment, developing economies experiencing  high rates of economic growth will see a rise in employment rate and household income should rise, this will lead to raising level of invetstment, which will create a sustainable economic growth, through rise in productive capacity of an economy.

high rates of economic growth may lead to the depletion of natural scarce resources, this will readuce the income available for future generations, furthermore, EG creates  negative externalities such as air pollution, these external costs will reduce people`s health and standards of living.

economic growth maight be achived through capital intensive methods, which will not increase the employment rate,

EG does not measure people`s quality of lifes, HDI is a measure which recognizes the limitations of GDP

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