Question

What are the differences between economic growth and development? Relate economic growth and development to the notion of sustainable development. Do you believe that the Canadian economy is making much progress toward sustainable development? Explain your answer.

Short answer

Economic growth is quantitative, while development is qualitative and comprehensive. Sustainable development combines both with environmental and social sustainability. Canada is progressing but needs to address specific sustainability challenges.

Step-by-step solution

Define Economic Growth

Economic growth refers to the increase in a country's output of goods and services, typically measured by the change in Gross Domestic Product (GDP). It is often quantified through annual GDP growth rates and focuses on quantitative expansions in economic activities.

Define Economic Development

Economic development involves improvements in a range of indicators such as literacy rates, life expectancy, poverty rates, and employment opportunities. It is focused on qualitative changes in the economy, ensuring better living standards and overall social well-being.

Differences Between Growth and Development

While economic growth is concerned with an increase in economic metrics like GDP, economic development includes social improvements like healthcare, education, and equality. Growth is quantitative, whereas development is qualitative and comprehensive.

Explain Sustainable Development

Sustainable development refers to growth and development that meets present needs without compromising future generations' abilities to meet their own needs. It balances economic, social, and environmental sustainability.

Relate Growth and Development to Sustainability

Economic growth and development can contribute to sustainable development when growth is pursued alongside environmental protection and social enhancement. Merely focusing on increasing GDP without addressing resource depletion and social inequality can hinder sustainability.

Assess Canadian Economy's Progress Toward Sustainability

Canada has made strides in aligning its economic activities with sustainable practices through policies that emphasize green energy, reduced carbon emissions, and investments in technology and innovation. However, challenges remain, such as balancing natural resource use and reducing disparities across regions.

Key concepts

Economic Growth

Economic growth is a fundamental aspect of any economy, characterized by an increase in the production of goods and services over a specific period. This growth is most commonly measured using the Gross Domestic Product (GDP). GDP acts as a report card for a country's economic performance, where a positive change indicates healthy economic activities.

Growth focuses on quantitative measures and is important because it helps improve living standards by providing more jobs, increasing employee wages, and generating more resources for public services. It can also lead to more investments and technological advancements. However, growth alone does not guarantee improvements in social well-being or environment preservation. Therefore, it must be integrated with other strategies to ensure sustainable development.

Economic Development

Economic development encompasses more than just numbers; it focuses on enhancing the quality of life for citizens. This includes metrics such as literacy rates, access to education, healthcare improvements, and reduced poverty. While economic growth provides the resources, development ensures these resources are used to better the living conditions of people.

Development is qualitative in nature and aims to create an equitable society where opportunities and benefits are accessible to all. It addresses issues such as inequality and social disparities. Through development, societies aim to provide a balanced approach that combines access to services with economic prosperity.

Gross Domestic Product (GDP)

Gross Domestic Product, or GDP, is the total market value of all finished goods and services produced within a country's borders in a specific time period. This metric is essential for assessing economic growth as it provides insight into the size and health of an economy.

GDP can be measured in several ways:

• Nominal GDP: Measures a country's total economic output as expressed in current prices, without adjusting for inflation.
• Real GDP: Adjusts for inflation to reflect the true growth in economy, giving a more accurate picture over time.

While GDP is a vital economic indicator, solely relying on it can be misleading. It does not account for income inequality, environmental degradation, or the overall quality of life.

Environmental Sustainability

Environmental sustainability is about ensuring that economic and social development does not come at the expense of the natural world. It involves making decisions and implementing practices that minimize negative impacts on the environment while ensuring resources are available for future generations.

Policies aimed at reducing carbon footprints, promoting renewable energy, and conserving biodiversity are critical components of environmental sustainability. This concept requires an understanding of the delicate balance between development needs and conservation efforts.

A sustainable approach ensures that economic activities do not deplete natural resources or cause irreversible environmental damage, leading to a healthier planet and better quality of life. In the context of sustainable development, environmental sustainability is integral to harmonizing economic growth with ecological conservation.