definition of economic development

The economic development of a country is based on its ability to generate wealth and progress in society as a whole. It is a concept that is part of economics as a discipline and is studied within a specific branch, development economics.

Key Concepts and Considerations of Economic Development

Economic growth is a desirable goal for any nation or region. The ideal economic development would be one that is sustained over time, equitable, efficient, respectful of people and at the same time beneficial for the largest possible number of individuals.

As the economy of a country is something dynamic and within a global framework, new market niches are constantly studied and analyzed to maintain or promote economic development. In this sense, in recent years the figure of the entrepreneur has appeared, who seeks new business opportunities within the general framework of the economy.

Some scholars of the concept of economic development emphasize the relationship between the values ​​of a society and the growth of wealth. In this sense, the value of competitiveness is a key element, since competition implies a free market and a rivalry between companies that ends up benefiting the economy as a whole (at product prices and consumers).

There is general agreement on the desirability of economic development being sustainable. This means that an activity that is carried out outside the environment cannot be considered as a productive strategy with a future, since the benefits that are generated are associated with the destruction of resources and, therefore, there is no sustainability in said activity . In general, it is considered that there can be no true economic development contrary to sustainability.

Factors involved in economic development

The economic growth of a nation depends on economic, political, social and cultural factors. A country's raw materials and energy sources are essential for growth to occur. From the political point of view, it is necessary for a country to be politically stable and for the administration to participate in economic activity with programs aimed at innovation, R&D or supporting entrepreneurs. Social and cultural factors are equally significant and proof of this is the relationship between the Protestant mentality and capitalism.

Some aspects become real obstacles to the economic development of a nation: a deficient educational system, corruption, the lack of infrastructures that impede communication and trade or a demographic reality with imbalances.

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