Economic Development

In my essay I am going to talk about Economic development and how is it measured. First I am going to define what economic development actually is, and then to explain the possible ways of measuring it. I also going to explain what is the HDI, human development index and the GDP, gross domestic product and how they are used used in measuring the economic development.
Economic development is the increase in the standard of living in a nation's population with sustained growth from a simple low-income economy to a modern high-income economy. Also, if the local quality of life could be improved, economic development would be applied. Its scope includes the process and policies by which a nation improves the economic, political, and social well-being of its people.
The University of Iowa’s Center for International Finance and Development states that:
“Economic development' is a term that economists, politicians, and others have used frequently in the 20th century. The concept, however, has been in existence in the West for centuries. Modernization, Westernization, and especially Industrialization are other terms people have used when discussing economic development. Although no one is sure when the concept originated, most people agree that development is closely bound up with the evolution of capitalism and the demise of feudalism." (online 1)

To accomplish economic development in a country, it needs to have a high GDP. It is the amount of goods and services produced in a year, in a country. It is the market value of all final goods and services made within the borders of a country in a year. It is often positively correlated with the standard of living. (online 2) This means that the country needs to create more working places, reduce un-employment, keep fixed prices and push the creation and rise of the firms. The country should also minimise the import and export. Another factor that is used is the HDI. The Human Development