Economic development, the process whereby simple, low-income national economies are transformed into modern industrial economies. Although the term is sometimes used as a synonym for economic growth, generally it is employed to describe a change in a country’s economy involving qualitative as well as quantitative improvements.
It sounds like an area of economics meant for business people or investors, related to growing profits. But economic development is actually something more, requiring input from social workers just as much as business leaders.
Views of development- In the past, development was mainly referred to industrialization, which involves focusing on rapid industrialization, often at the expense of agricultural and rural development.
Industrialization involves building factories, manufacturing plants, roads, flyovers and other physical and visible development. Being trapped in this myopia during 1958 China focused on industrial expansion in such a degree that, it paid little attention in agricultural production, which caused a severe famine. Historically, this famine is known as the Great Chinese Famine, which was lasted for three consecutive years. Communist government ordered the people to kill sparrows along with three other insects as they falsely identified that sparrow might be the cause of the famine.
During 1970s, many countries had achieved their desired level of development in terms of traditional measures, still many people in those countries live in poverty and misery. This condition hinted that there was something wrong in the definition of development. From this point economists started to mention that not only economic development, but also human development are necessary, together, to achieve real development. Amartya Sen’s capability approach is considered as the best measure of development from this new viewpoint.
Data Source: https://denversouthedp.org/