This is the notes from NIOS Economics. This article will be useful for all those IAS aspiring candidates who want to brush up their concepts dealt in this cahpter. I have tried to include all the important points mentioned in the chapter and have made efforts to summarize them as much as I could. However, you are highly recommended to refer to the Economics books by NIOS since they are very important for forming your basic concepts and lot of questions are asked in the CSAT Prelims from these chapters. Have a Happy Learning!

Economic Growth

• Continuous increase in the total volume of goods and services produced by a nation over a long period of time.
• Total physical production without increase in value of total production (increase in physical quantity and not price) over a longer period.

The increase must not be:
1. On each and every goods and services
2. Uniform for all goods and services.

Economic Development = Economic Growth + desired changes in the distribution of national income and other technical and institutional changes.

If economic growth:
1.helps in increasing the standard of living i.e. the per capita real income
2.helps in eliminating poverty, unemployment & inequalities of income
3.there is implementation of better techniques of production
4.positive change towards work and life, etc;
then it has led to economic development.

Thus, Economic Development=Economic Growth + Qualitative changes in the economy

Qualitative changes in economy:

• improvement in the level of living
• reduction in inequality
• rise in efficiency
• improvement in techniques
• fast growth of industrial sector
• positive changes in attitudes
• generating institutional changes
• development of technology, etc.

World Bank classifies countries on the basis of per capita real income every year and publishes the report in the World Development Report.

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References:

NIOS – Economy