Economic development implies the process of securing levels of productivity in all sectors of the economy and this, in turn, is a function of the level of technology. Economic development is a process of stepping up the rate of capital formation. But economic development is, influenced by both economic and non-economic factors.
• The prominent economic factors are the available capital stock and the rate of its accumulation, the capital-output ratio in various sectors, agricultural surplus, conditions in foreign trade and the economic system.
• The non-economic factors are size and quality of human resources, political freedom, social organization, technical know-how and absence of corruption, etc. economic development means economic growth in a country where the growth process has not progressed very far.
• Development is to be pursued as a deliberate mechanism of the deliverance of the masses from poverty and idleness in a relatively short period of time. Economic development is not only a process but also a level.
Features of a Developed Economy:
• High Per Capita Income
• High Standard of Living
• High National Income
• Full Employment of Resources
• High Level of Technology
• Dominance of the Industrial Sector
• High Industrialisation
• High Consumption Level
• Smooth Economic Growth
• High Level of Urbanisation
• Social Equity, Gender Equality and Low Levels of Poverty
• Political Stability and Good Governance
According to Amartya Kumar Sen, development is about creating freedom for people and removing obstacles to greater freedom. Greater freedom enables people to choose their own destinies. Obstacles to freedom, and hence to development, include poverty, lack of economic opportunities, corruption, poor governance, lack of education and lack of health.