... growth rate is only at about 4%. This shows the poor relationship between economic growth and economic development. To truly define economic development you need to have sustained growth with reductions in poverty. Development should involve increased growth, though better education, increased standard of living, a cleaner environment, equal opportunity; greater freedom and a more diversified cultural life should accompany this. Thus economic growth can occur without development but development cannot occur without growth. Therefore economic growth is a necessary but not sufficient aspect of economic development. So to index countries by development more than growth must be considered, thus the Human Development Index (HDI) came into being. A composite indicator, which combines per capita GDP with life expectancy and adult literacy. Therefore development can be shown by improvements in the HDI of a country. It is not easy for LDC'S to achieve sustained development, as there are many barriers to ...

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