Economic Growth

Almost all developing countries prioritise economic growth as one of the most important goals as it would help to enhance national income and per capital income.

While the developed countries may want to maintain their economic growth rate, developing countries may wish to have a steady, increasing growth in their economics

Development

Development does not mean economic growth alone. It includes other issues such as quality of life, indicated by enhanced access to education and health care, adequate employment opportunities, protection of environment and biodiversity, availability of clean air and safe drinking water, reduced crime rate, etc.

Inequalities in income distribution among people in a nation exist and hence growth with equity has become a preferred goal of development.

When it is absent, it makes way for social unrest and insurgent revolutionary forces such as Marxists or Maoists who fight against the government. Economic growth is needed to enrich national wealth. It could reduce poverty and other social problems.

But when economic growth is pursued at the cost of greater inequality, more unemployment, weakened democracy, and loss of cultural identity or over consumption of natural resources without caring to preserve them for posterity is really dangerous. Such a growth is not sustainable and could land that country in deep trouble.

Sustainable development

In 1987, the United Nations World Commission on Environment and Development defined sustainable development as follows.

“Development is sustainable if it meets the needs of the present without compromising the ability of the future generations to meet their own needs”.

Sustainable development attempts to balance the interests of different groups of people, within the same generation and among generations in economic, social and environmental aspects. Thus, equity becomes the foot path of sustainable economic development.

Human developmentEconomic development without considering human

development is incomplete. Human development is measured by life expectancy, adult literacy, access to all three levels of education, as well as people’s average income. These are necessary to ensure people’s freedom of choice. Human well being includes economic, social and political freedom.

The United Nations organization publishes Human Development Reports every year. The Human Development Report, 1996 emphasised that, “human development is the end-economic growth a means”.

Green growth

This approach considers environment protection along with economic growth. It emphasizes environmentally sustainable economic progress to foster low-carbon, socially-inclusive development.

Asian countries realize that prioritization of export-led growth has adverse impacts on environment resulting in environmental degradation, climate change effects and over-exploitation of natural resources.

While economic growth is necessary to alleviate poverty and to ensure social progress, it is equally important that environment is protected for posterity.

Asia developed the concept of green growth that combines economic growth with environmental protection.

Globalisation

It refers to the widespread economic activities across countries such that nations become naturally dependent upon each other increasingly.

In the long run rapid movement of goods and services globally makes the national borders irrelevant in a way and this is called progressive de-territorilization.

Driving Forces behind Globalisation

Globalisation means increased opening up national markets to do away with protectionist measures. Trade restrictions that are seen now as stumbling blocks to free trade will have to be removed totally.

Distance becomes obsolete with modern telecommunications and transport. All state-owned companies will have to be privatized so that everything becomes a capitalist property.

As capital is a constraint to many nations in the south, liberalization of the international flow of capital will need to be ensured to achieve globalization