2.4         ndian      onom
          The above-given combinations, though                 the concept of welfare state and the immediacy of
     comparative in nature, make one thing clear, that,        development.
     just as for higher income and growth we need
     conscious efforts, same is true about economic            meAsuring DeveloPment
     development and higher economic development.              Although economists were able to articulate the
          Without a conscious public policy,                   differences between growth and development
     development has not been possible anywhere in             (Mahbub ul Haq, a leading Pakistani economist
     the world. Similarly, we can say, that without            had done it by the early 1970s), it took some
     growth there cannot be development either.                more time when the right method of measuring
          The first such instance of growth without            development could be developed. It was
     development, which the economists saw, was in             an established fact that the goal of progress
     the Gulf countries. These economies, though they          goes beyond the mere ‘increase in income’.
     had far higher levels of income and growth, the           International bodies such as the UNO, IMF and
     levels of development were not of comparable              WB were concerned about the development of
     levels. Here started the branch of economics which        the comparatively underdeveloped regions of the
     came to be be known as ‘development economics’.           world. But any attempt in this direction was only
     After the arrival of the WB and IMF, conscious            possible once there was a tool to know and measure
     economic policies were framed and prescribed for          the level of development in an economy and the
     the growth and development of less developed              determinants which could be considered as the
     economies.                                                traits of development. The idea of developing a
          We can say that economic development is              formula/method to measure the development was
     quantitative as well as qualitative progress in an        basically facing two kinds of difficulties:
     economy.3 It means, when we use the term growth                (i) At one level it was difficult to define
     we mean quantitative progress and when we use                      as to what constitutes development.
     the term development we mean quantitative as                       Factors which could show development
     well as qualitative progress. If economic growth                   might be many, such as levels of income/
     is suitably used for development, it comes back                    consumption, quality of consumption,
     to accelerate the growth and ultimately greater                    healthcare, nutrition, safe drinking water,
     and greater population brought under the arena                     literacy and education, social security,
     of development. Similarly, high growth with                        peaceful community life, availability of
     low development and ill-cared development                          social prestige, entertainment, pollution-
     finally results in fall in growth. Thus, there is                  free environment, etc. It has been a realty
     a circular relationship between growth and                         difficult task to achieve consensus among
     development. This circular relationship broke                      the experts on these determinants of
     down when the Great Depression occurred. Once                      development.
     the concept of the ‘welfare state’ got established,           (ii) At the second level it looked highly
     development became a matter of high concern                        difficult to quantify a concept as
     for the governments of the world, policymakers                     development constitutes quantitative
     and economists alike. A whole new branch of                        as well as qualitative aspects. It is easy
     economics—welfare economics has its origin in                      to compare qualitative aspects such as
        3.   World Bank, World Development Report 1991, Oxford          beauty, taste, etc., but to measure them
             University Press, New York, 1991, p. 4.                    we don’t have any measuring scale.