Growth and development: what's the difference?

Economic growth is an increase in the real output of an economy. We usually measure it with real GDP. The word "real" means we take out the effect of rising prices, so a rise in prices alone doesn't count as growth.

Economic development is a wider idea. It is about living standards: how long people live, their health and education, and how much poverty there is. Growth can help development, because more output creates jobs and income that can pay for schools and hospitals. The two don't always move together, though. If most of the extra income goes to a small group, or growth damages the environment, many people may be no better off.

Real GDP per head (per person) is a better guide to living standards than total real GDP, because it takes population into account. If real GDP rises more slowly than the population, real GDP per head falls. It is still an average. It doesn't show how income is shared, and it leaves out things like health, working hours and pollution.

This is why wider measures exist. The Human Development Index (HDI) combines income, health (measured by life expectancy) and education in one figure. Two countries with similar income per head can have quite different HDI scores. In the AS and A Level syllabus, HDI is in the A Level part, along with other indicators such as the Measure of Economic Welfare (MEW) and the Multidimensional Poverty Index (MPI).

In an answer, start by making clear whether the question is about growth or development. Then use the difference to evaluate. Suppose a question asks whether faster growth will raise living standards. Explain how higher output could help, then say what it depends on. For example, it depends on who gets the extra income, whether it is spent on health and education, and what happens to the environment. Finish with a judgement that follows from those points.