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What is Economic Development?

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Economic development is the study of the factors and processes that bring about or prevent improvement in the quality of life. Economic development is synonymous with improvement in the quality of life.

The components of (improvement in) quality of life are:

Higher Income (click to see details)

	increases in real per capita gross domestic product (GDP)
	increases in gross national product (GNP)

Better Education

increases in primary, secondary, and tertiary school enrollments

Higher Standards of Health and Nutrition

	improvement (lowering) of the population per physician ratio (or population per nurse ratio) and increase in caloric intake
	increase in life expectancies, reduction in infant mortality, increase in population with access to safe water, and an increase in per capita food production

Less Poverty

decrease in the poverty rate

A Cleaner Environment

reduction in co2 emissions

More Equality of Opportunity

Greater Individual Freedom

	increase democratization and democratic elections
	increase in political and economic reforms

A Richer Cultural Life

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Development is a multidimensional process of accelerating economic growth, reducing inequality, eradicating poverty, as well as major changes in economic and social structures, popular attitudes, and national institutions.

Quality of life can be measured by the Physical Quality of Life Index (PQLI), based on three widely available indicators of basic-human-needs: life expectancy at age one, infant mortality rate, and literacy rate. PQLI can range from 0-100. This means that the richest countries may not always enjoy the highest quality of life!

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Recommended Reading

E. Wayne Nafziger, The Economics of Developing Countries.

Todaro, Economic Development

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Reference Materials

The World Bank, World Development Report, Washington DC: The World Bank.

UNDP, Human Development Report, New York: Oxford University Press.

The World Bank, African Development Indicators, Washington DC: IBRD.

The World Bank, The World Bank Atlas, Washington DC: The World Bank.

World Bank, World Development Report

World Bank, World Data on CD - ROM