Why Economic Development is Important
Economic development essentially refers to the policies, activities or programs in a developing economy that seek to improve the economic well-being of its community and the quality of life of its people and achieve long-term economic growth. It is the production of wealth with which community development and benefits are acknowledged and met. It is not simply about creating more job opportunities but also an investment. It invests in growing the economy and enhancing the prosperity and quality of life for all residents. Anything that a community creates and fosters a sustainable environment and economic growth can fall under economic development on a broader scale. Now more than ever, economic development is necessary for the growth of developing nations to run parallel with the large scale globalisation that has occurred. Economic development requires collective community action and dedication to building a better future. It is critical to analyse the resources needed by a particular area and work towards attaining them to get a structured and ideal model. The city council must gather the required public-private partnerships and have a sustainable workforce development that must go hand in hand. Such development matters because it helps eradicate poverty, especially in developing countries where job creation and more opportunities can be made. Economic development matters not just to assist poverty reduction but to enhance the lives of all the community people.
Development economics is the sub-field of economics aimed at studying the complex task at hand of transforming economies from one of low-income to high-income. In that sense, development economics has failed despite receiving billions of dollars in research over many decades.
Poor countries lack job creation. They also lack strong entrepreneurship culture, strong labor laws, a well-developed private sector with some undertaking the public sector.
A developing country such as India pursued a different path. India's economic development took a dramatic turn after the early 1990s when the central government began to loosen its grip on economic restrictions. Thus, an increased level of liberalisation led to growth in the country's private sector. The economic policy of the Indira Gandhi premiership was characterised by taxation increase and the green revolution, which helped the economy. Gandhi presided over three of the Five-Year Plans as Prime Minister, two of which succeeded in meeting the targeted growth. The international economic development council records the United States being the wealthiest developed country with $21,430 billion as its gross domestic product. The profit is centred on but not limited to the human capital, which operates based on investment, agriculture and FDI's. Economic developers have analysed how education and inclusive growth play a key role in economic growth and fit into a country's long-term growth. Access to education increases the knowledge of a person and their place in the industrial ecology. Education creates insight and an incentive into the economic opportunity we need for sustained economic growth. Lack of education can create inequality and prevent them from participating in numerous social activities productively and comprehensively. Education paves the way for innovation and technological advancements that provide profitable outcomes for the economy. Community residents must also monitor the economic activity to create a firm resolve to better opportunities provided by the local government.
Economic development is, more importantly, a gradual process whereby simple, low-income national economies are transformed into modern industrial economies. A per capita income criterion usually categorises developing countries, and economic development is usually thought to occur as per capita incomes rise. Though the priorities of economic development may vary, its strategies often aim for common objectives, such as:
A better quality of life
Promoting your community's assets
Creating more jobs and more job variety
Keeping businesses and getting new ones
More productive use of property
But why are the rich nations still leading and global poverty remains?
Economic development planning can achieve the dual goals of increased per capita economic growth and sustainable development.