Growth, Development and Happiness           2.3
     an annual concept which may be used otherwise          quality of life was comparatively low. The time had
     with the clear reference to the period for which it    come to define economic development differently
     is used.                                               from what the world meant by economic growth.
          Though growth is a value neutral term, i.e., it   For economists, development indicates the quality
     might be positive or negative for an economy for       of life in the economy, which might be seen in
     a specific period, we generally use it in the positive accordance with the availability of many variables
     sense. If economists say an economy is growing it      such as:
     means the economy is having a positive growth                (i) The level of nutrition
     otherwise they use the term ‘negative growth’.              (ii) The expansion and reach of healthcare
          Economic growth is a widely used term in                    facilities—hospitals, medicines, safe
     economics which is useful in not only national                   drinking water, vaccination, sanitation,
     level economic analyses and policymaking, but                    etc.
     also highly useful in the study of comparative             (iii) The level of education
     economics. International level financial and               (iv) Other variables on which the quality of
     commercial institutions go for policymaking                      life depends
     and future financial planning on the basis of the
                                                                  Here, one basic thing must be kept in mind
     growth rate data available for the economies of the
                                                            that if the masses are to be guaranteed with a
                                                            basic minimum level of quality-enhancing inputs
                                                            (above-given variables such as food, health,
        economIc develoPment                                education, etc.) in their life, a minimum level of
     For a comparatively longer period of time after        income has to be guaranteed for them. Income is
     the birth of economics, economists remained            generated from productive activities. It means that
     focused on aspects of expanding the quantity of        before assuring development we need to assure
     production and income of a country’s economy.          growth. Higher economic development requires
     The main issue economists discussed was—how            higher economic growth. But it does not mean
     to increase the quantity of production and income      that a higher economic growth automatically
     of a country or a nation-state. It was believed that   brings in higher economic development—a
     once an economy is able to increase its production,    confusion the early economists failed to clarify.
     its income will also increase and there will be an     We may cite an example here to understand the
     automatic betterment (quality increase) in the         confusion: two families having same levels of
     lives of the people of the economy. There was          income, but spending differing amounts of money
     no conscious discussion over the issue of quality      on developmental aspects. One might be giving
     expansion in the lives of the people. Economic         little attention to health, education and going
     growth was considered as a cause and effect for        for saving, and the other might not be saving but
     the betterment of the lives of the people. This was    taking possible care of the issues of health and
     the reason why economists, till the 1950s, failed      education. Here the latter necessarily will have
     to distinguish between growth and development,         higher development in comparison to the former.
     though they knew the difference between these          Thus, we may have some diverse cases of growth
     terms.                                                 and development:
          It was during the 1960s and in the later decades        (i) Higher growth and higher development
     that economists came across many countries where            (ii) Higher growth but lower development
     the growth was comparatively higher, but the               (iii) Lower growth but higher development