Economic Development: Improvement in living standards and economic well being, increasing freedom, reducing poverty, provision of education and helthcare, civil liberties without compromising sustainability.

Sources of Economic Growth

1. Human Capital Factors:

Quantity: can be increased by immigration, population growth

Quality: Improved healthcare, education for children, vocational training, retraining for structurallly unemployed.> improve health, skills, make them more productive> potential output, productive potential.

1. Physical factors and technology

Physical capital: facotry buildings, machinery, shops

Quantity of physical factors is influenced by level of saving, domestic investment, foreign investment, govet involvement.

Quality of physical capital is improved by investment in R&D, education

1. Capital Widening; Extra capital used for extra labout> total production increases> prodictivity same
2. Capital Deepening: Increase in amount of capital per worker> caused by imprrovements in tech> leads to improvements in productivity.
3. Natural factor: Improving quality and ouantity of land. Increasing quantity land > not easy. Quanlity: better fertilization methods, planning, etc.
4. Institutional factors: Adequate banking system, infrastructure, education system, political stability

Sustainable development

As economies grow>demand for goods increase> resources are limited> factories, power plants use vast amounts of resources> threatning sustainability

Achieving dual goald of economic growth, and environmental preservation; meeting needs of the present without compromising the ability of future generations to meet their basic needs.

Ways sustainability is a threat

(read goals of sustainable development if possible)

Relationship between sustainability and poverty