We explain what economic development is, the advantages that this increase in well-being brings and what are its main characteristics.
What is economic development?
Economic development refers to the persistent increase in the well-being of a population , which in turn depends on the sustained increase in aggregate production over time .
The latter is known as economic growth, and in fact economic development and economic growth are often expressions that are used interchangeably, but it is worth noting that they are not identical concepts, since economic development is somewhat more complex since it includes the quality of life , especially the satisfaction of the needs of the members of that community .
In other words, economic development is the ability to generate wealth in order to promote and maintain the prosperity of the inhabitants of a country or region.
Characteristics of economic development :
GDP increase
The Gross Domestic Product is a fundamental economic indicator, which marks the monetary value of all final goods and services . When there is sustained economic development, GDP grows.
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Increase in income or income per capita
Importance of industrial production
In general, industrial activity has a multiplier effect on the economy , so this is the activity that pushes the most towards economic development.
You may be interested in: Manufacturing industry .
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Lower weight of primary production
Changes in the social structure
In developed economies there is a growth of the middle class , in which most of the subjects that support the economic-productive system based on the permanent consumption of goods and services are inserted , often through credit mechanisms.
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Technological changes in production processes
Greater access to health and education
When there is economic development, society all benefits from economic growth , and if this is accompanied by adequate policies in terms of managing funds, it is possible to strengthen the health and education infrastructure , allowing all inhabitants to reach it.
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Equal opportunities
Absence of unsatisfied basic needs
From the data taken in the national censuses, this index can be estimated, which considers the minimum needs in terms of housing, health services, basic education and minimum income. When there is economic development , the proportion of people with UBN is reduced .
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Access to credit
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