If a country experiences high GDP growth but increasing inequality, which concept applies?

• A. Economic growth
• B. Economic development
• C. Growth without development
• D. Sustainable growth

Answer: (C)

The main idea here is the difference between how fast an economy grows and how that growth translates into people’s living standards. GDP growth shows the economy is producing more, but it doesn’t say anything about how the gains are distributed or whether overall well-being improves.

When growth is accompanied by rising inequality where most people aren’t seeing better living conditions, the economy is expanding without developing the society. Development would mean not only higher output but also improvements in things like health, education, and fair access to opportunities for the population. If those welfare aspects don’t improve and inequality widens, the situation fits growth without development.

Economic growth alone is too narrow a concept, focusing only on output. Economic development would require broader improvements in living standards and equity, which aren’t evident here due to increasing inequality. Sustainable growth involves keeping growth going over time with attention to resources and the environment, but the key signal in this scenario is the lack of broad development despite higher GDP, hence growth without development.