Rabu, 15 April 2009

Economic development and economic growth

Economic development is a process of increasing income and total income perkapita to take into account the growing population and accompanied by fundamental changes in the structure of the economy of a country.
Economic development can not be separated from economic growth (economic growth); economic development to encourage economic growth, and vice versa, facilitate the economic growth process of economic development.
Is the process of economic growth is an increase in production capacity of an economy that is realized in the form of increase in national income has said a state of economic growth occurs when the real increase in GNP in the country. There is economic growth is an indication of the success of economic development.
The difference between success of economic growth is more quantitative, namely the increase in the standard income level and the resulting production output, while economic development is qualitative, not only increase production, but there are also changes in the structure of production and allocation in the different input economic sectors such as in institutions, knowledge, and techniques.

Natural resources of the influence of economic development.
There are several factors that affect economic growth and development, but in fact these factors can be grouped into two factors and economic factors nonekonomi.
Economic factors that affect economic growth and development are natural resources, human resources, capital resources, and expertise or entrepreneurship.
Natural resources, including land and natural wealth such as soil fertility, the climate / weather, forest products, mines, and the sea, influence the growth industry of a country, especially in terms of providing the raw material production. Meanwhile, the expertise and entrepreneurship needed to process raw materials from nature, something that has become a higher value (also referred to as the production process).
Human resources also determine the success of national development through the number and quality of the population. Number of population that is a big potential market for the results of production, while the quality of the population determines how large the productivity.
Meanwhile, the capital resources needed to cultivate the human raw material is. The formation of capital and investment is intended to excavate and manage wealth. Resources such as capital goods, capital goods is essential for growth and smooth economic development because of capital goods can also improve productivity.
Nonekonomi factors include socio-cultural conditions in the community, state, political system and a growing force and effect.

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