ECONOMICS DEVELOPMENT

Economics Development

Economics Development

Economic growth and economic development are often thought to be synonymous but although the two are closely linked, there are crucial differences in their meanings. Economic growth is defined as 'a rise in the total output (goods or services) produced by a country'. It is measured by the percent rate of increase in the gross domestic product (GDP). Economic development as defined by Todaro is "not purely an economic phenomenon but rather a multidimensional process involving reorganization and reorientation of entire economic and social system". (Barker, 1993: 24)

The prosperity of the economy in every civilized society has in the past and will always be a major concern for its citizens, as well as the various types of administrators who are entrusted to lead. Often, 'growth' and 'development' are inaccurately interchangeably used and sometimes considered to be synonymous. However it should be noted that they are two very separate and distinct concepts. The economic development of a country is defined as the development of the economic assets of the country. Economic development is aimed at the overall welfare its population, as they are the ultimate beneficiaries. Economic growth on the other hand, is a narrower concept than economic development. It is defined as the increase in the value of goods and services produced by every sector of the economy. This essay seeks to determine whether the Trinidad and Tobago has grown or developed and including four major development indicators: The Human Development Index (HDI), Human Poverty Index (HPI), Gender-Related Development Index (GDI) and Climate Change.

Economic growth can be considered a precursor and a requirement for development. This growth can be quantified using many of the statistics available through Government and secondary sources. It has one of the highest per capita incomes in Latin American and the Caribbean (US$13,340 in 2006 and $16,041 in 2007). The country's GDP growth rate in 2004 was 6.2 percent, following a 13.2 percent GDP growth rate in 2003. The country's GDP growth rate for the first half of 2005 was 6.2 percent. Strong growth in Trinidad and Tobago over the past few years has led to trade surpluses. Many economic reports have assured positive growth for the economy. The Trinidad & Tobago Business Forecast Report has indicated that economic outlook for Trinidad & Tobago remains very favourable.

Economic growth measures growth in monetary terms and looks at no other aspects of development. Economic development looks at increase in productivity while taking into account factors like economic, social and political issues. Very often economic growth in a nation does not bring about economic development. Economic growth of a nation can also be accompanied by increase in poverty and growing levels of unemployment. This type of growth if not accompanied by economic development in the long term is bound to have adverse affects on society. Not only does it affect people, it also has a negative impact, as to maximize profits, the environment is callously polluted. Economic growth can take place if there is efficient use of ...