Economic Development
Economic development refers to the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and objectives. It is more than just a jobs program; it involves the creation of wealth from which community benefits are realized. Economic development encompasses a wide range of programs, policies, and activities that seek to improve the economic well-being and quality of life for a community. This can include efforts to influence the direction of private sector investment toward opportunities that can lead to sustained economic growth, creating more jobs, keeping and attracting businesses, promoting local assets, and enhancing the productive use of property.
Economist Amartya Sen describes economic growth as one aspect of the process of economic development, emphasizing that economic development is not solely about market productivity and increases in GDP, but also about creating and utilizing physical, human, financial, and social assets to generate improved and broadly shared economic well-being and quality of life for a community or region. Therefore, while economic growth focuses on the expansion of the economy at large, economic development is concerned with the expansion of peoples entitlements and their corresponding well-being.
The concept of economic development has been in existence for centuries, and it has a direct relationship with the environment. It is a concerted effort on the part of the responsible governing body in a city or county to influence the direction of private sector investment toward opportunities that can lead to sustained economic growth, providing sufficient incomes for the local labor force, profitable business opportunities for employers, and tax revenues for maintaining an infrastructure to support continued growth.
In summary, economic development involves a multifaceted approach to improving the economic well-being and quality of life for a community, encompassing various strategies and initiatives aimed at creating wealth, fostering sustained economic growth, and enhancing the overall prosperity of a region or locality.
