By Dr. Saman Shali

In economics, economic development and economic growth are related terms. However, they refer to different aspects of a country's economic success and well-being. Here are the fundamental distinctions between the two:

1. Definition:

• Economic Growth: Economic growth refers to the increase in a country's output of goods and services over time, typically measured by the Gross Domestic Product (GDP) or Gross National Product (GNP). It is a quantitative measure of the expansion of an economy. It focuses on the increase in the production of goods and services within a specific period, usually expressed as a percentage. It focuses on the economy's expansion in terms of production and income.
• Economic Development: Economic development is a more comprehensive concept. It encompasses not only the increase in the production of goods and services but also improvements in the quality of life, standard of living, and well-being of a country's population. It considers income distribution, education, healthcare, infrastructure, and social welfare. It is more comprehensive and qualitative.

2. Measurement:

• Economic Growth: Measured primarily by indicators such as GDP or GNP growth rates. It emphasizes the quantitative aspect of economic progress in the country.
• Economic Development: This is measured by using a range of metrics, including the Human Development Index (HDI), which considers characteristics such as life expectancy, education, and per capita income. The HDI is a composite summary measure of a country's average achievements in three critical areas of human development: health, knowledge, and standard of living.

3. Focus:

• Economic Growth: Mainly focuses on increasing the size of the economy and the total output of goods and services. It does not necessarily guarantee improvements in living standards for all segments of the population.
• Economic Development: Focuses on improving the overall well-being of a society. It looks beyond GDP growth to address poverty reduction, healthcare, education, infrastructure, and income distribution.

4. Duration:

• Economic Growth: This can occur in the short term and does not necessarily lead to significant improvements in living standards or development indicators.
• Economic Development: A long-term process that aims to achieve sustainable improvements in a nation's citizens' overall quality of life.

5. Goals:

• Economic Growth: The primary goal is to increase the size of the economy and promote higher income levels.
• Economic Development: The goal is to achieve a better quality of life for all citizens, which includes factors like reducing poverty, improving healthcare and education, and ensuring a fair distribution of income.

6. Technology and innovation:

• Economic Growth: occurs through increased productivity and efficiency but does not necessarily lead to enhanced technological progress.
• Economic Development: Recognizes the importance of technological progress and innovation as drivers of long-term development.

In summary, economic growth is a narrower concept that primarily measures the increase in the production of goods and services. In comparison, economic development is a broader concept encompassing both quantitative and qualitative aspects of well-being, including social and human development indicators. Countries often strive for economic growth and development, as they are interrelated but not synonymous. Sustainable economic development is generally considered a more comprehensive and desirable goal for nations. The Iraqi and Kurdistan Region Governments must focus on economic growth rather than short-term economic growth.

Saman Shali has a Ph.D. in Science (1981) from the University of Sussex. Dr. Shali worked as an Assistant Researcher and Assistant Professor at the University of Sussex, King Saud University, and Pennsylvania State University. He is also a senior fellow at the Mediterranean Institute for Regional Studies.