Economic growth means an increase in real national income / national output. Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life -expectancy and health care. ... Higher real GDP enables more to be spent on health care and education.
Economic growth and development: the general concept of growth in the theories of economic is a vital part of the study of how econimic viarables depend on each other in this study we look at the diferences between growth and development. For a nation the be fully developed it most have the various institution and ministries and department to see to the archievement of this macro economic goals. So of the macro economic goals may include the following;
Increase in eployment; uneployment has been a challenge for the achievement of economic growth and development, to increase eployment oppotunities the government is saddled with the responsibilities of creating the enabling environment for businesses to strive for economic growth. Constructing industries, companies, providing grant and loans for small and medium scale enterprice with percentage interest, this will result in high stadard of living becuase the disposable income of house holds will increase.
The balance of payment of a nation and it gross domestic product also determine the economic growth and development. The country must encourage domestic production which is eat what you produce and produce what you eat . not depending on import to survive, export what you produce to increase you forign reserve. Economist will say growth and development of a nation depends on how the countries utilize the natural resource available in that nation or country. Also the political will by the elite to developed.
Internationl trade policies give room for economic development. A high standard of living is a macro economic goal that cannot be over emphasise. Every countriea goal is to see that their citizen per capital income increase for optimal growth and development, provising security for business to grow. This encuarage investors to come to ones country to invest with the motive of making profit which in the long run icrease governmet revenue through taxes paid by multinationals , creat employment for teaming youth.
Curruption has been one of the factor affecting economic growth and development among many countries of the world today mostly in the African continent, were the political class embezel and mismanage funds and finance for developmental project with acounting for it . this most be tackeld or else the under developed and developing nations will remain in a stage of comatus. We should all discourage such practices in our agencies so as to enjoy the benefits of democracy. Government should provide laws and policies that will deal with any public official cut in this act no matter were higly place he or she is this law most be followed to avoid low productivity in the economy.
Developing countries of the world are faced with challenges of inflation, stagflation and economic depression due to low level of economic activities.
Types of economic system
The economic growth if any system were by government is responsible for organizing, distribution of the available resources,goods and services all across the region and geographical location or nations. The economic growth system regulate all the factors of production including land, capital, labour, and even the activities of the entrepreneur. Many economises around the world have there own economic system with it pecuelarities. They are mainly categories into four they as follows:
1. Traditional economic growth (system)
It is base primary on services, work and goods that are subject to certain established trends and event. It drive it strength from people, division of labour and specialisation is minimal. This type of economic growth system is the most oldest among the four type of systems ,it is mostly practices were people are predominantly farmers Eg the second and Third World nations. The are mostly found in the rural locations, it provide no room for resource sharing and also lack potentials for surplus grouwth.
2.Command economic growth system
This type of system : there is a dominant authority centralise and the government control most structure in the economy. It is also called a planned system and is common communist states because if the dominance if government in decision making. The people are left to regulate the agricultural sector if the economy. This type of system will work good if only the interest of the people are followed by the government. It is rigid compared to the other system. There is slow growth because of the centralise nature if power and can affect the economy negatively
market growth economic system
Thus deals with the concept of the free market in other words the government is not to interfere with market activities and have little power over resources and does not control important sectors of the economic. There fore regulations come s from the relationships between supply and demand and the people. This system is mostly theoretical in nature and Ther me us no pure market system the reason is that the economic system us subject to interference by an authority that is central, theoretically viewed the market economy increase growth substantially. Growth is the highest in a market economic growth system.
4. Mixed economic growth system
This combined the command and market system, it is also known as a dual system and can be describe as market strict control. Many developed countries practice mixed system of market growth, industries are mostly private while the rest are primarily public service sector and are under the control of government.
The mixed system is faced with challenges if finding the best balance between government and free market and the government usually derive much control.
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