Macroeconomic Growth Factors

Privatization refers to giving greater role to private sector and reducing the role of public sector through disinvestment of public sector and dilution of stake of the government. Privatization results in better economic development due to more resources from private sector, better management due high competition in private sector and encouragement of entrepreneurial skills into the individual. 

Economic development refers to the development and growth of the economy in all terms which includes all aspects and has become a main and central theme of economic thought throughout the years. 

The developed economies deals with other under developed economies. Therefore, these developed countries demand development of all the poor countries so that these countries can achieve a higher prosperity. Moreover, these developed countries have understood that poverty anywhere in the world is a thread to prosperity everywhere.

 Therefore, the developed economies mainly focus on economic development to avoid cyclic fluctuation of their economy.

Underdeveloped countries pursue economic development to address multiple goals, including poverty reduction, increasing their influence on the global stage, and building internal economic strength.

Economic growth is specifically defined as the increase in a country's real per capita income over a long period of time.

The primary focus of economic growth is the increase in per capita income, which serves as a proxy for the average standard of living.

Before the 1970s, economic development was largely viewed through a narrow lens of economic indicators like GDP growth. The 1970s marked a shift toward more multidimensional views including social and human development.

The traditional approach to economic development focuses primarily on quantitative metrics, specifically the growth of real per capita income. It contrasts with modern approaches that incorporate qualitative indicators like poverty and inequality.

The traditional approach defines economic development narrowly, focusing on measurable economic indicators such as GDP or per capita income growth, rather than broader social or environmental outcomes.

Economic growth is primarily quantitative, but when discussing development, it is often accompanied by qualitative improvements, such as increased efficiency in the use of inputs and better resource allocation.

Economic growth is a quantitative concept (increase in output), whereas economic development is a broader, multidimensional concept that includes qualitative changes in the standard of living and social structures.

Economic development refers to the economic growth of the economy in all terms which includes all aspects and has become a main and central theme of economic thought throughout the years. 

Because the traditional approach focuses almost exclusively on income growth, it is considered a narrow definition compared to the modern approach, which includes social and human development factors.

Economic development involves structural changes in both the economic system (e.g., shift from agriculture to industry) and the social system (e.g., education, health, and institutional reforms).