Economic Development: Positive and Negative Impacts
Definition of Economic Development
Economic development is a process of an increase in total income and income per capita by taking into account the increase in a population and the fundamental changes in the economic structure in a country and the increase in income for the people in a country.
An economic development can not be separated from economic growth, it can encourage economic growth, and vice versa, economic growth can facilitate a process of economic development.
The purpose of economic growth is a process of increasing the capacity of an economy that has been realized in the form of an increase in national income. In a country it can be said to experience economic growth if there is an increase in the real SNP in a country. With economic growth is an indication of the success of a country's economic development.
The difference between the two is the economic growth of the success of quantitative changes, meaning that there is an increase in the standard of income and the level of output output that has been produced, while with economic development is more qualitative, not only an increase in production, but a change in the production structure and input allocation to various economic sector, for example knowledge, institutions, engineering, and social.
Development as a process
A development can be interpreted as a process, with the meaning that development is tahao that must be undertaken for all people or nations. For example, humans from birth, do not immediately become adults, but to become an adult must go through stages of growth. Likewise, every nation must undergo the stages of development to be a prosperous, just, and prosperous condition.
Development as an effort to increase per capita income
As an effort, development is an active action that must be carried out or carried out by a nation or state in increasing per capita income. With that, it takes the role of all people, governments and all elements in a country to always actively participate in development. This was done because the increase in per capita income reflected improvements in a people's welfare.
The increase in income per capita must take place in the long term
The economy can be said to develop if per capita income in the long run tends to increase. that right does not mean that per capita income must increase continuously. For example, in a country where natural disasters strike, the country's economy will suffer a setback. However, this situation was only temporary, the most important thing for the country was that its economic activities experienced an average increase from year to year.