Cambridge International as and a level Economics Ebook

Progress and development: 
Economic growth is 
perhaps the key measure of progress in an economy. This 
can be assessed by examining economic data. To assess 
whether an economy is developing is a more normative 
judgement.
KEY CONCEPT LINK
Economic development
In its World Development Report of 1991 the World Bank 
off ered the following view of development:
Th
e challenge of development . . . is to improve 
the quality of life. Especially in the world’s poor 
countries, a better quality of life generally calls 
for higher incomes – but it involves much more. It 
encompasses as ends in themselves better education, 
higher standards of health and nutrition, less 
poverty, a cleaner environment, more equality of 
opportunity, greater individual freedom and a rich 
cultural life.
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Cambridge International A Level Economics

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This statement remains true. Although it acknowl-
edges that economic growth is important, it makes 
clear that higher income in itself is not sufficient to 
ensure that there is a rise in the quality of life for the 
citizens of a country. This is a much broader view of 
development than one confined purely to increases in 
GDP. It is one that provides a different focus for those 
responsible for development policy planning, and moves 
away from measures designed purely to increase and 
maintain an economic growth target. Todaro states 
that development must be seen as a multidimensional 
process.
Development . . . must represent the whole gamut of 
change by which an entire social system, tuned to the 
diverse basic needs and desires of individuals and 
social groups within that system, moves away from 
a condition of life widely perceived as unsatisfactory 
toward a situation or condition of life regarded as 
materially and spiritually better.
(M.P. Todaro, 
Economic Development
, 1995)
Sustainability
Very rapid economic growth may be achieved but 
this may be at the expense of the living standards and 
quality of life of future generations if it results from the 
reckless use of resources. Both developed and developing 
countries are now becoming more concerned to achieve