Economic development
Economic development concerns broader improvement in living conditions, opportunities and productive capabilities over time. It can include health, education, infrastructure, institutions, inclusion and sustainability as well as higher output. Economic growth may support development but does not guarantee that its benefits are widely shared or that environmental and social conditions improve. Appropriate indicators depend on the question being assessed.
Worked example
An economy’s real GDP rises while access to safe water and education remains uneven. The output increase indicates growth, but evaluating development also requires evidence about those living conditions and their distribution.
Common mistake
Do not equate development with GDP growth alone or assume every technological investment improves wellbeing. State the dimensions and evidence used.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |