The Growth and Development topic is sectioned under the Economic & Social Issues Paper for RBI Grade B Mains Exam. It is an important topic to understand how economic growth leads to development and what are the parameters to measure growth and development. It is one of the foundational topics to understand in Economics as it forms the basis of almost everything.
To begin with, it is important to understand that economic growth is more of a quantitative measure that can be quantified using data and numbers whereas development is a wider concept and is more of a qualitative measure. Let’s look at it in detail:
Economic Growth refers to the increased capacity to produce goods and services over a period of time. It is conventionally measured by measuring the increase in the country’s Gross Domestic Product(GDP) or Gross National Product(GNP) or Per Capita Income (PCI).
Economic Development, on the other hand, is a qualitative aspect of growth. According to Micheal Todaro, “Economic development is an increase in living standards, improvement in self-esteem needs and freedom from oppression as well as a greater choice”
The subtopics that are included under the Growth and Development topic are:
We will be discussing each of these briefly in this article. Let’s get started:
National Income: National Income refers to the total value of goods and services produced within a country in a specific period of time. There are four ways to measure National Income namely Gross Domestic Product (GDP), Net Domestic Product (NDP), Gross National Product (GNP) and Net National Product (NNP). In India, National Income is calculated by the Central Statistical Office (CSO) which is headquartered in New Delhi.
Per Capita Income: Per Capita Income refers to the average income per person in a specified area in a year. It can be calculated by dividing the total income by the total population of the country. It is calculated to evaluate the living standards and the quality of life in a country. It is a crude indicator of prosperity in a country.
Being the second-most populous country in the world, poverty alleviation is one of the major challenges in India since its independence. Although there is a steady decline in poverty in India, the number of poor people remains relatively constant owing to population growth. Acceleration in economic growth coupled with employment generation is one of the key techniques to alleviate poverty. Some of the poverty alleviation schemes under the government of India are:
Similarly, there are some schemes run by various governments in India to date that focused on employment generation among the youth in order to tackle poverty. Some of them include
Some of the schemes that are run by the current government for employment generation are:
Sustainable Developments refers to the development which does not compromise with the needs of future generation while meeting the needs and requirements of the present generation. It was given by the Brundtland Commission in its report “Our Common Future”. There’s an urgent need for sustainable development to tackle critical issues such as climate change, overexploitation of natural resources and scarcity of resources.
The three core elements which lie at the heart of Sustainable Development are economic growth, environmental protection, and social inclusion. Hence, it can be said that social sustainability, economic sustainability, and environmental sustainability plays a significant role in sustainable development.
United Nations (UN) launched the 2030 Agenda to bring sustainable development in the mainstream. It has identified 17 goals and 169 targets that are to be achieved by 2030. In order to achieve it, the countries need to act on various fronts including government, businesses, civil society and the people themselves all have a role to play.
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