Economic Growth and Development Essay

During the beginning of the evolution of frugals of development, no distinction was drawn amidst the frugal growth and economic development. During the seventies, the economists thought of distinguishing the economic growth and economic development. When it comes to economic development, there are two different arrests. The traditional view has been to interpret it in terms of budges in the structure of national fruit and the occupational pattern of boil force and the institutional and technological changes that pay off about such changes or accompany such changes.In this view, the section of factory farm in both national product and employment of labor force declines and that of industries and services increases. Various strategies of development which were suggested until seventies generally cerebrate on rapid industrialization so that the structural transformation could be achieved. For this purpose, the appropriate institutional and technological changes were recommen ded to bring about such structural changes. According to C. P.Kindleberger, economic growth means more output and economic development implies both more output and changes in the technical and institutional arrangements by which it is produced.Thus according to this view, the economic development implies growth sum total structural change. Structural changes refer to the changes in technology and institutional factors which sheath shifts of labor from agriculture to modern manufacturing and services sectors and also general self-importance sustaining growth of output.An aspect of structural change which is of special mention is that during the make for of economic development there occurs a shift of the working cosmos from low productivity employment in agriculture to the modern industrial and services sectors having higher levels of productivity of labor. It is quite interesting to note that during the sue of economic development the percentage share of the working population in agriculture sharply falls whereas the percentage shares of the working population sedulous in modern industrial and services sectors substantially increase.Apart from the change in the sectoral distribution of the labor force, there occurs a change in sectoral composition of national income in which while percentage contribution of agriculture to national income declines, percentage contributions to national income of industrial and services sectors increase.This is on scotch of the various changes taking place namely a change in the pattern of consumption of national income of the people economy growing steady and moving upwards income level of the people is found to be change magnitude and various changes that are taking place in the levels of productivity in the different sectors of the economy.