Economic development is a broader concept than economic growth (measured by metrics like GNP/ GDP). While growth in real per capita GNP indicates an increase in the average income/output per person, it does not guarantee improved living standards or overall welfare for all. If poverty and unemployment increase alongside GNP growth, it suggests that the benefits of growth are concentrated among certain segments of the population, inequality is rising, and structural issues prevent job creation. This scenario indicates that economic growth is not leading to inclusive or equitable development.
Increase in absolute and per capita real GNP do not connote a higher level of economic development, if
Asked in UPSC IAS 2018 · Topic: Sustainable Economic Development (Inclusive Growth, Poverty Eradication, and Social Equity)
Show answer
Answer: C. poverty and unemployment increase.
More Economic Development questions
- Increasing investment in human capital leads towards
- Abhijit Banerjee, Esther Duflo and Michael Kremer got the Nobel prize in Economics in 2019 for
- How many Asian Countries are members of G-20 ?
- Which of the following statement is correct about the "One Belt One Road" initiative ?
- Which of the following statements about 'Nairobi Package' adopted in the Tenth Ministerial Conference of WTO is / are correct? 1. No safeguard mechanism for developing country members 2. Preferential rules of origin for least developed countries 3. Public stockholding for food security purposes Select the correct answer using the code given below :
- Which one of the following issues the ‘Global Economic Prospects' report periodically?
- G-20 is an inter-governmental forum for addressing certain global and regional issues. Which of the following is true regarding its functionality?
- Local Initiative Facility for Urban Environment (LIFE) was launched by which of the following?