4.2.6.5 Economic Growth and Development (AQA A-Level Economics Teaching PowerPoint)

This AQA Economics teaching powerpoint covers many aspects of Economic Growth and Development

Economic growth and development are closely related but different concepts:

• Economic growth refers to the increase in the total output of goods and services produced by an economy over time. It is often measured by the growth rate of GDP (Gross Domestic Product).
• Economic development, on the other hand, refers to the improvement in the overall standard of living and quality of life of the population. It involves not only an increase in the quantity of goods and services produced, but also an improvement in the quality of those goods and services. It also includes social and environmental progress.

So, economic growth is a necessary but not sufficient condition for economic development.

Here are some characteristics of less-developed economies:

• Low per capita income: Less-developed economies typically have lower average incomes than developed economies.
• High levels of poverty and inequality: These economies often have a large proportion of the population living in poverty and a high level of income inequality.
• Limited infrastructure: Less-developed economies often have limited infrastructure, including transportation, communication, and electricity networks.
• Limited human capital: These economies often have a less educated workforce, with lower levels of literacy and numeracy.
• Dependence on primary commodities: Less-developed economies often rely on exporting primary commodities, such as agricultural products or natural resources, rather than manufactured goods.

Human Development Index

The HDI is a widely used measure of economic development that takes into account not just economic factors but also social and environmental factors. The HDI is made up of three components:

• Life expectancy: A measure of the quality of healthcare and living conditions.
• Education: Measured by adult literacy rates and school enrolment.
• Standard of living: Measured by GDP per capita (a measure of economic output per person).

The HDI provides a more holistic view of development than just GDP alone, and it can help policymakers identify areas where investment is needed to improve the standard of living of a country's population.