Assessing Economic Growth for Developing Countries' Quality of Life

This essay critically assesses the statement that 'economic growth is the most powerful instrument for improving the quality of life in developing countries.' It begins by defining international development and economic justice, highlighting their impact on global growth and trade. The main body delves into the importance of economic development in developing countries, emphasizing investments in human capital, and the role of developed countries in setting standards. It explores various factors contributing to economic growth, such as natural and human resources, capital goods, technology, and demand, and their impact on GDP, poverty reduction, unemployment, and public services. The essay also examines how political aspects influence economic development and the significance of controlling debt-to-GDP ratios for sustainable growth. The conclusion summarizes the key arguments, reinforcing the multifaceted nature of economic development and its impact on improving the quality of life in developing nations.

International Development
and Economic Justice

INTRODUCTION...........................................................................................................................5
MAIN BODY..................................................................................................................................5
Critically assess the statement, ‘economic growth is the most powerful instrument for
improving the quality of life in developing countries’................................................................5
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
International development is that process which helps in forming of programs that
enhances knowledge with resources in order to make communities and governments all over
world work to end social issues, restoring human rights and makes promotion of resilient,
democratic societies while advancing global security and prosperity. This has been helping in
making country attain position at global level or within global market. Such development makes
trade practices to be improved. Economic justice is that kind of justice which helps in forming of
those set of moral principles which makes economic institution of a country to achieve goals and
objectives set by them. This helps in making dignified, productivity and increases lifestyle of an
individual. Scope of international development and economic justice is wider in nature since it
impacts growth of country at global level. Also it has dynamic nature due its tendency to effect
various functions related to trade.
MAIN BODY
Critically assess the statement, ‘economic growth is the most powerful instrument for
improving the quality of life in developing countries’.
Economic development is one of the most important thing which is required to be taken
care by a country in order to makes its growth with stability possible. In developing countries
economic development has played major role in making growth possible of an country at global
level. Such development has lead upon making investment done in relation to human capital
which has initiated economic growth in more effective manner. Developed countries have
reduced the gap between developed and underdeveloped aspects that made them emerge as one
of the biggest economies within the world. In this gap elements like education, skills
development, knowledge enhancement, policies formation is been focused over. Developed
countries have developed themselves in timely manner that made new marketing trends adapted
in there market trends. In order to make development possible with countries like USA, Russia,
China, United Kingdom and Germany they have focused upon three economy with finances
which has helped them in gaining various kinds of raw materials and other items required within
various sector to be available time. Further development also took place due to sustainability that
is been maintained by them. Then they have focused upon developing industries, technology and
production capacity which made them become self sustain in producing major things within their
countries. Developed economy is that kind of economy which is based upon high level of
economic growth. Under it certain important thing is covered that is Gross Domestic Percentile
which should be ten percent or more in order to be developed country. This helps in detecting
individuals earning on an average. Then countries having high levels of economic growth and

security are considered as developing economy. In this per capital gross domestic product is seen
for making parameters of growth achieved by a country or to call it as developed country. Then
under it non economic factors like human development index is been seen in order to make
criteria fulfilled which is related over global development. Develop countries has used
globalization as an opportunity to develop itself as at global level. Developed countries have
gained developing ideas with the help of which standards over economic growth and security kis
been set which made major development possible with consistency. These countries have
focused upon making evaluation of income per capita and per capita gross domestic product
possible. Then various other factors like health, education and skill development is focused over
by these countries. Then developing economies made individual improve their lifestyle and there
living standard also. They focused upon human capital which acted as driver of economic growth
for developing countries. Developed countries have made considerable progress in closing the
gap which has resulted in making them emerge as developed economies (Gurumurthy and
Chami, 2019).
.
This result shifts attention to issues of school quality, and there developing countries have
been much less successful in closing the gaps with developed countries. Without improving
school quality, developing countries will find it difficult to improve their long run economic
performance. Economic growth is the most powerful instrument for reducing poverty and
improving the quality of life in developing countries. In various researches done over economies
of different countries, which has made ways of attaining sustainability to be analyzed with
keeping balance within the progress of economy. Millennium development goals have been
formed by these countries who has made growth rate increase. Both cross-country research and
country case studies provide overwhelming evidence that rapid and sustained growth is critical to
making faster progress towards the Millennium Development Goals – and not just the first goal
of halving the global proportion of people living on less than $1 a day. Growth can generate
virtuous circles of prosperity and opportunity. Strong growth and employment opportunities
improve incentives for parents to invest in their children’s education by sending them to school.
This may lead to the emergence of a strong and growing group of entrepreneurs, which should
generate pressure for improved governance. Strong economic growth therefore advances human
development, which, in turn, promotes economic growth. But under different conditions, similar
rates of growth can have very different effects on poverty, the employment prospects of the poor
and broader indicators of human development. The extent to which growth reduces poverty
depends on the degree to which the poor participate in the growth process and share in its

proceeds. Thus, both the pace and pattern of growth matter for reducing poverty. A successful
strategy of poverty reduction must have at its core measures to promote rapid and sustained
economic growth. The challenge for policy is to combine growth promoting policies with
policies that allow the poor to participate fully in the opportunities unleashed and so contribute to
that growth. This includes policies to make labour markets work better, remove gender
inequalities and increase financial inclusion (DY and MANUEL, 2019). There are various
kinds of economics policies used by developing countries which makes strong and reliability
achieved within working pattern of an organization. Also policies made in relation to economy
helps in managing of budget which is released by a country. Certain factors is has helped in
making economy of developing countries developed which are Natural resources that includes
things existing within the nature and making exploitation of economy value hold by them. It
makes rate of economy increase within a country. Under this rate of economic growth increases
since natural resources is been used for making various kinds of products. This can be
understood with the help of an example based upon impact of rate of economy. Such example is
fossil fuels, valuable metals, oceans, and wild life. It has made major contribution within growth
of economy of a country. Human resource in this both skilled and unskilled workforce is
included. It is another important factor contributes to Gross Domestic Product through earning
made by them. Further they contribute towards making based for long term sustainability of an
economy. They helps in increasing production capacity of industry. Since more worker leads
towards higher production with value of goods and services increased. Capital goods these are
those tangible assets which makes plant and machinery carry out process of increasing
production capacity upon goods to be produced by an organization. They require more
investment but boosts industries which generate revenue through making direct contribution over
economy of a country. It enhances growth rate in future with faster pace. Also technology is
another factor which plays important role in contributing towards uplifting economy. Since
technology makes productivity and services enhancement possible this creates customers
satisfaction by gradually making investment done towards economy by allowing smooth flow of
economy at global level. Demand also contributes towards making supply of goods and services
which helps in attaining sustainability upon economy. This makes economic growth possible
with flow of money. Through increase in demand supply of product increases which makes
economy boosted. Then Efficiency factor It helps in achieving of efficiency which makes

productivity increased upon efficiency. High efficiency means uplift ment of growth in economy
which increase employment. It makes maximum growth achieved by making resource available
through optimizing use of materials used for making goods and services. These factors have
helped both developed and developing countries gain sustainability with strength that lead over
positive growth of economy. Economic development is one of the most important parts of
developing nation since it is continuous process and cannot be stopped. Developing nation with
the help of such factors makes there economy attain sustainability. These factors are required for
economic growth of and developing countries(Darnell and Millington, 2019).
.
Economic growth has it importance since it directly impacts GDP of a country and makes
rise of national income possible. It also contributes towards output of nation and total
expenditure. Also economic development enables the rise of living standards of an individual by
enhancing consumption of goods and services. This makes economic development take place in
more effective manner. Economic growth or development takes place through certain things
which are it helps in reducing poverty, controlling unemployment, improving public services,
reducing debt over GDP and political aspect. All these things make economic development have
positive impact upon country. Economic development leads upon making country develop its
economic stability over long period of time. Further points related with economic development
have been explained as follows Reduction in poverty: This increases national output which
makes household goods and services to be made available to an individual. Further it helps in
making people of an country earn which makes level of poverty reduced of an country. Countries
having poverty level of significant nature reduces it by focusing upon basic needs which is to be
provided to them. This can be understood with the help of example that is in the nineteenth
century, absolute poverty was widespread in Europe century of economic growth has lifted
nearly everyone out of this state of poverty. Economic growth is particularly important in
developing economies. Reduced Unemployment: This is also another important part which is
been deal within economic development. Under it job opportunity is been generated which
makes individual attain earnings within society. It makes high demand to be created through
providing them employment. Also individual then contributes towards economic development of
country. Unemployment is major factor which impacts economy in drastic manner. Then comes

improved public services within which higher economic growth is achieved only when tax is
been paid by public. Since public services contributes towards economy through collecting tax
from it. Further makes public life to be improved which leads upon creating high demand over
better services and makes economy improved. Through improvising tax policies government if
able to make better development possible of economy by increasing treasury in more effective
manner. It leads over making satisfaction created within public. Reduced debt to GDP this is
related to economic development in a way that it makes ratio of fiscal defecate controlled which
eventually increases economic percentage. In this surplus of budget is handled which can impact
economic growth negatively. All developed countries had focused upon their budget surplus that
made them attain economic stability and increase self sufficiency within them. Also it has made
economic development possible at faster rate with more effectiveness. It impacts economic
growth(Beitz, 2019). These are certain impact which is created by economic development over a
country. Further such development makes GDP uplifted and making budget surplus controlled.
This reduces debts over economy reduced. So, it is important for making budget more
sustainable in nature by making economy stability maintained through making GDP debt ration
managed. Then it deals upon stagnant economy which leads over making high rate of
unemployment developed. It is deal through economic development by making high demand
created which makes firms and organization open job opportunities for its employees. Economic
development is been impacted due to political aspect since politicians have their vested interest
as economy rises. This makes growth enable of economy which makes tax increase and burden
over economy also increases. Positive rate of economy makes vicious cycle of economy to be
formed which makes flow of economy to be smoothening. Economic development leads upon
making benefit which increases demand. High growth of economy leads upon making various
factors to improve that is related to economy. It makes target of long term goals achieved by
providing confidence to investors and making them do large investment within economy.
Economic growth also affects hel[ps in improving of individuals life through increasing rate of
economic growth individual is able to live better life style to an extent. There are two theories
which is been used for making growth of economy possible and they are Malthusian Theory
and Classical growth theory. The Malthusian theory is based upon history of human
technological progress that has been cause through large population growth and its impact over
per capita within long run. As per theory growth of population has impacted growth of economy

in negative manner which has lead upon struggling of developing countries. In this theory
technological advancement has been suggested in order to make economy of country stable. This
theory has been formed by Thomas Malthus and modern representation over the approach is
been provided by Ashraf and Galor. This theory has been proven to be effective in relation to
technology and growth of economy. Further it has contributed towards making density of
population reduced through making technological advancement which lead over economic
growth. So this theory has provided base upon dealing within problem of high population which
impacts growth of economy. Classical growth theory it is based upon making classic economic
theory over production which is based upon growth of economy. In this theory various kinds of
factors which impacts production is been covered. The approach makes growth of economy
possible by making sure that production capacity is increased by an organization which makes
technological changes. This theory assumes about All other factors which can impact growth of
economy. These concepts have their origins in Thomas Malthus’s theorizing about agriculture.
Malthus's examples included the number of seeds harvested relative to the number of seeds
planted on a plot of land and the size of the harvest from a plot of land versus the number of
workers employed. Criticisms of classical growth theory are that technology, an important factor
in economic growth, is held constant and those economies of scale are ignored. These theories
have been proven to be very effective in finding solutions over gaining stability within the
growth of a country. There are various factors which impact the growth of economy and makes
individual lifestyle disturbed. Such factors are Lower interest rates: this makes reduction of
cost possible upon borrowing and encouraging more of consumer spending and making firms
invest. In this lower rate makes reduction of mortgage payments which makes disposable income
of consumer increased. This makes people spending to be decreased which make debts increased
over them. Then Increased wages: in this kind of factor if disposable income increased and
wages is reduced then standard of life style of an individual reduces. Thus impacting GDP of an
country which affects economy. Increased government spending: in it various kinds of
unnecessary spending is done by government which makes economic growth to be slower down.
For examples Government investment over building new roads and increases welfare spending
that makes disposable income increase. Devaluation: Which is based upon exchange rate
through exporting of cheaper quality of products. This results into depreciation over exports and
makes imports more expensive due to which domestic goods looses their value within market. It

directly impacts global economic growth which makes various kinds of materials not available in
market. This affects lifestyle of an individual. Confidence: Consumers confidence is been
discourage since they makes scarifies in their daily lifestyle. This results in losing of GDP which
makes economical cycle of an country collapse. This leads over making debts of an individual
increase in order to satisfy needs of them. Further confidence is shook as economic growth is not
there which has increased spending by making wages less. Lower tax: This directly impacts the
growth rate of economy since less tax means people not able to pay tax which reduces economic
consistency. It makes spending increase and tax reduction results in making public services
quality reduced which h eventually impacts individual’s life. Rising house prices: It is another
problem which impacts individual’s life and economic growth of property. In this if price
increases individual is not ready to spend upon it which makes prices of house increase and less
purchase to be made. If price increases then less spending which impacts economy directly.
Financial stability: This is another important part which impacts individuals life in a way that if
there is no financial stability then an individual will live in poverty and demanding power
decreases which makes supply chain broken. This reduces economic growth and makes financial
stability loose which reduces growth and economic development. Inequality and distribution:
economic growth is reduced which makes distribution of income. Economic growth reduces
which poverty that makes distribution of income possible. Economic growth makes inequality to
be created within society between rich and poor. Such inequality and distribution make spoor
more poor and rich more rich. Negative externalities: through this negative growth is made
which makes population, increase in crime rate and reducing standards of living. This can be
understood with the help of example that in China rapid growth of economy has made
experience reduced through air pollution and crime rate increased due to poverty which made
Chins face loss in its economy. Economic growth can be conflicted with the environment like
economic growth policies including industries may lead towards environmental problem which
becomes problem for government. This makes conflict to be taken place between growth and
development of economy. Also growth of economy is dependent over what is been produced
since product produce impacts sales and profit of an organization. In this economy can
drastically be impacted. Then no sustainability reduces economic growth and makes individual’s
lifestyle impacted. So, it becomes important to make sure that economy growth is not been
impacted in any manner due to these factors(Badru ,2018).

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The above discussion has made clear that economic growth is very important part of a country.
Also economic development is one of the most important part of country which makes financial
improvement to be done in more effective manner. This has further increased lifestyle of people
by increasing their spending power and purchasing will. Also certain factors are there that
impacts the growth of economy in more effective manner resulting in lack of economic
development. Economic growth an economic development is interrelated with each other which
makes growth of country possible in positive manner. This results in making economy more
stable in nature.
CONCLUSION
The above essay it can be marked out that international development is the process by
which an country establish itself at global level. In this economy has major role to play that is the
reason economic development is required to be done for making a country attain economic
sustainability. Further it leads upon making country attain sustainability with the help of
economic growth. Then in this essay various factors is been covered which makes growth of
economy possible. In this essay theory has been discussed about economic growth. Economic
growth makes lifestyle to be improved.

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Zyngier, D., 2017. How experiential learning in an informal setting promotes class equity and
social and economic justice for children from “communities at promise”: An Australian
perspective. International Review of Education, 63(1), pp.9-28.