Economic Development: Improving Well-being Beyond Mere Growth

Economic development is a comprehensive process aimed at enhancing the economic well-being and overall quality of life for nations, regions, or individuals, differing significantly from simple economic growth. While economic growth primarily measures market productivity and increases in GDP, development, as economist Amartya Sen articulated, is a broader, sustainable increase in the overall standard of living, encompassing factors like empowerment, equity, productivity, and sustainability, as highlighted by the United Nations Development Programme. Historically, early policies focused on industrialization and infrastructure; however, since the 1960s, there has been a crucial shift towards poverty reduction as a central goal. The modern emphasis on global economic development gained significant momentum post-World War II, notably highlighted by President Harry Truman's 1949 inaugural speech, which underscored the importance of sharing technical knowledge to alleviate global suffering and foster a better life in undeveloped areas.