Chapter 16: Economic Growth and Development

What you'll learn in this chapter

• profile countries/regions using income, wealth and inequality
• explain economic growth vs economic development (and why they’re not the same)
• explain how factors of production (labour, capital, human capital, technology) drive growth/development
• compare Ireland with a less-developed country using the (inequality-adjusted) Human Development Index
• assess the effectiveness of Irish overseas development aid (ODA) and a government priority area
• explain why tensions can arise between governments and NGOs in delivering aid

Core ideas

Economic growth is an increase in income per head without a fundamental change in society’s structure. Economic development is income growth with major structural change — for example urbanisation, widespread education, a shift towards more industrial/commercial activity, and stronger institutions. :contentReference[oaicite:1]{index=1}

You’ll use the HDI (and inequality-adjusted HDI) to compare living standards beyond income alone. The comparison tables in the notes emphasise indicators like life expectancy, expected years of schooling and GNI per head to contrast developed and less-developed countries. :contentReference[oaicite:2]{index=2}

Exam focus

• Definitions: be crisp on growth vs development and give one clear example of “structural change”.
• Comparison question: interpret HDI-style metrics (life expectancy, schooling, income) and explain what they imply.
• Foreign aid: know what ODA is, why Ireland provides it, and be able to evaluate effectiveness (benefits + limits/opportunity cost).
• NGO vs State: explain why priorities can clash (governments must weigh multiple goals; NGOs focus on specific causes).

Interactive: HDI vs GNI per Capita

The Human Development Index (HDI) measures more than income alone — it combines health, education, and standard of living. Explore how countries compare using UNDP data.