Business Environment, 1st Edition by Pearson

Chapter 15: The Economics of Development | 175 |

produced in the economy. Economic development, thus, refers to

raising the standard of living of all inhabitants and not a few. Since

it is described as a process whereby the real per capita income of a

country increases over a long period of time, this would necessarily

raise the standard of living of all people and their economic and

social welfare. There may be instances where the rise in the real

national income may not lead to increase in the standard of living

of the people of those countries which face demographic problems

such as India, China, Pakistan and Bangladesh where the rate of

population growth far exceeds the increase in income. Moreover,

the wealth produced in the country ...