- ECONOMIC GROWTH
Is the increase of the production of good and service within a given period. Economic growth can be identified in two form.
- Actual economic growth: this is when there is an increase in the real gross national product of country within a given period of time.
- Potential economic growth
This is when there is an increase in the production capacity of an economy. which occur as a result of an increase in the quantity and quality of resources of a given country.
Factors That contribute to the economic growth.
- Political stability
- Availability of natural resources
- Population growth
- Improvement in education and train
- Easy access to bank loans and other credit facilities
Importance of economic growth
- Creation of infrastructural developpement
- Increase in living standards
- Creats employment
- It facilitates the creation of social ammenties
- ECONOMIC DEVELOPPEMENT
This refers to the improvement in the economy of a country over a given period of time.
Factors that favour economic development
- A good banking system that protects saving grant loans e.t.c
- Transparency and account ability in government actions.
- A good tax code
- A good investment code that attract foreign investors
- Good laws that encourage and protect investment
Reasons for the decline of economic development
- Social invest of war
- Weak bank system
- Political instability and uncertainly
- Natural disaster
- Tax inflations
- Capital flight
RELATIONSHIP ECONOMIC GROWTH AND ECONOMIC DEVELOPMENT
- Generally economy growth
- When there is an increase in quality and quantity of goods and services the following benefits will
- Income level will increase
- Increase in the living standard with increase
- Employment
- Corruption
- Natural disasters
- capital flight
- smuggling
TASK
- Defines labour
- Gives some rights of workers
- Defines social security
- Gives the importance of social security
- Defines economic growth and economic development
- What are the relationship between economic growth and economic development
