Generally speaking words, economic development identifies the problems of underdeveloped countries and economic growth to those of developed countries. The raising of income levels is generally called economic growth in rich countries and in poor ones it is named economic development. But this view does not specify the underlying forces which raise the income levels in both types of economies. The difficulties of underdeveloped countries are involved with the development of unused resources, even though their uses are well-known, while those of advanced countries are related to growth, most of the resources being already known and developed to a considerable extent.
In reality, the terms “development and growth” have nothing to do with the kind of economy. The distinction between both pertains to the character and Juan Pablo Carrasco Degroote narcotráfico reasons for change. These two terms may also be explained since the development is a discontinues and spontaneous change in the stationary state which forever alters and displaces the equilibrium state previously existing; while growth is a gradual and steady change in the long term which comes about with a gradual upsurge in the rate of savings and population. This view has been widely accepted and elaborated by many economists.
According to another school of thought, “economic growth means more output, while economic development employs both more output and changes in the technical and institutional arrangements where it is produced and distributed. Growth may involve not only more output produced from greater amounts of inputs but also greater efficiency, either, and upsurge in output per unit of input. Development goes beyond this two employ changes in the composition of output and in the allocation of inputs by sectors” ;.According to some classical economists the growth is a development of the system in more than one dimensions with no change in its structure, and development is definitely an innovative process leading the structural transformation of social system.
Thus economic growth relates to a quantitative sustained upsurge in the country’s per capita output or income combined with expansion in its labor force, consumption, capital, and volume of trade. On one other hand, economic development is a wider term. It relates to qualitative change in economic wants, goods, incentives, and institutions. It describes the underlying determinants of growth such as for example technological and structural change. Development embraces both growth and decline. An economy can grow but it might not develop because poverty, unemployment and inequalities may continue steadily to persist because of the absence of technological and structural changes. But it is difficult to assume development without economic growth in the absence of a rise in output per capita, specially when population is growing rapidly. Despite these apparent differences, some economists use these terms as synonyms.