Concept of Economic Development

1. Is a process to improve the lives of people in a country.
2. This involves not only raising living standards, for instance goods and services, but also a promotion of self-esteem, dignity, respect and people's freedom to choose and to take control of their own lives.

There are two levels of development, namely:

1. Individual level of development.
2. National level of development.

1. Refers to the increase of material well-being of a person like a good house, car and clothes.
2. Also includes greater freedom of expression, worship, increased human skills and the ability to produce goods and services in a larger quantity.
3. Encompasses the educational level of a person.

1. Refers to the improvement in social, economic, cultural and political affairs of a community or country.
2. Involves the provision of better health services and water accessibility.
3. Political development at the national level involves aspects of good governance, rule of law and human rights.

There are two categories of development, namely:

1. Economic development.
2. Social development.

1. Is the rate of expansion of national income or total volume of production of goods and services of a country.
2. Many developing countries have somehow achieved reasonable economic growth but there is less economic development.
3. In Tanzania for instance, there is a rise in economic growth every year, yet the lives of majority of the people are not improved.
4. In this situation, you will find an increase in the GDP, but the living conditions of the people continue to deteriorate.

1. Increases the Gross Domestic Product (GDP).
2. The GDP is the actual economic growth.