Economic development is defined as a sustained improvement in material well-being of society.
Economic development is a wider concept than economic growth. Apart from the growth of national income, it includes changes –
- social, cultural, political as well as economic which contribute to material progress;
- resource supplies, in the rate of capital formation, in size and composition of population, in technology, skills and efficiency, in institutional and organizational set-up.
These changes fulfil the wider objectives of ensuring more equitable income distribution, greater employment and poverty alleviation.
In short, economic development is a process consisting of a long chain of interrelated changes in fundamental factors of supply and in the structure of demand, leading to a rise in the net national product of a country in the long run.
Bibliography : NIOS – Economics