There are several definitions of the two concepts, try to give an approximation to the two: Economic Growth:Economic growth is a variable that increases or decreases the gross domestic product (GDP). If GDP grows at a faster rate than population growth, said the standard of living rises. If, however, the rate of population growth is higher than the GDP growth rate, we can say that the standard of living of the population is decreasing.
The growth can be measured in nominal or real terms (discounting inflation). If nominal GDP has increased at a growth rate of 5% and inflation reached a rate of 4% over the same period, we can say, in real terms, the growth rate is 1%, which is the real increase GDP. economic growth rate is used to make comparisons between different economies, or between an economy and the country group to which it belongs. For example, the growth rate of Argentina or Uruguay can be compared to the mean or average of the four Mercosur countries while, in the case of Spain, it may be interesting to compare their rate with the 15 countries of the European Union.
At present, the concept of “economic development” is part of “sustainable development”. A community or a nation engage in a process of “sustainable development” if “economic development” is accompanied by “human”-or social-and environmental (preservation of natural and cultural resources and deployment of control measures negative impacts human activities). Some analysts believe that economic development has two dimensions: economic growth and quality of life (satisfaction of basic needs, both material and spiritual). however, is understandable include the issue of the quality of life within the “human development”, thereby reducing the “economic” considerations to generate wealth or, what is the same, the increased production of goods and services. If the geographic scope of analysis is the local-or municipal-, talk about local economic development.
Some History: In the fifties, development is understood as a virtual synonym for economic growth and industrialization. The man was considered a factor of production, ie, as a means to achieve higher economic growth. The ultimate indicator of development was the per capital income. It was also thought that there was one way to development and that the model was the United States. These ideas became the dominant when talking about the development of a country. In the sixties was questioned earlier conception of development. Professor Dudley Seers criticism clearly formulated a concept of reduced development to economic growth.According Seers, if we want to know whether a country is developed we must ask what has happened to poverty, unemployment and inequality. If these problems have worsened could not talk about development, even though the per capital income has doubled. Therefore, it is clear that economic growth can not be the end of development.Importantly, the document invites us not forget the lesson of history: the war that we live in the eighties was preceded by three decades of economic growth. In the seventies, the concept of development involved the search for growth equity.
In most industrialized countries emerged a growing concern about the irrational use of natural resources and environmental pollution had caused their growth and industrialization. Unfortunately, in the eighties, the recession in the international economy, the explosion of the problem of external debt and inflation problems led to central economic objectives were macroeconomic stability and economic growth recovery. The eighties and early nineties were the times of the stabilization and economic adjustment. These adjustment processes exacerbated the problems of poverty, inequality, social exclusion and environmental degradation in virtually all developing countries. In the nineties, consolidates a new concept of development, which is called “human development sustainable. ” It is understood that the equitable growth and development means in harmony with nature. Anyway: Growth refers to nominal economic grow or shrink, economic development is a broader concept, where welfare and have consideration is natural more fundamental role.