Meaning of Growth and Development
A country’s economic growth is usually measured by National Income, indicated by Gross Domestic Product (GDP). The GDP is the total monetary value of the goods and services produced by that country over a specific period of time, usually one year.
The level economic development is indicated not just by GDP, but by an increase in citizens’ quality of life or well-being. The quality of life is being assessed by several indices such as Human Development Index (HDI), Physical Quality of Life Index (PQLI) and Gross National Happiness Index (GNHI).
The term “Gross National Happiness” was coined by the fourth king of Bhutan, Jigme Singye Wangchuck, in 1972. It is an indicator of progress, which measures sustainable develop- ment, environmental conservation promotion of culture and good governance.
On the basis of the level of economic development, nations are classified as developed and developing economies.
Developed economies are those countries which are industrialised, utilise their resources efficiently and have high per capita income. The USA, Canada, U.K, France, and Japan are some of the developed economies. Developed economies are also termed as Advanced Countries. On the other hand, countries which have not fully utilized their resources like land, mines, workers, etc., and have low per capita income are termed as under developed economies. Examples of underdeveloped countries are Sub Saharan Africa, Bangla Desh, Myanmar, Pakistan, Indonesia etc.They are also termed as Undeveloped Countries or Backward Nations or Third World Nations.