Benefits of Economic Development
Economic development refers to the enhancement in GDP and several other factors such as the improvement in average earnings of the people in a nation. Whenever a country’s GDP increases, it means that economic development has occurred, which is very beneficial to that country and its people. Further below are benefits of economic development.
1. Increases employment rate
Economic development leads to high employment rate. When businesses and firms produce more products, their internal need for people increases gradually and thus they are forced to hire more people. This action increases employment rate significantly.
2. Enhances standards of living
Economic development is essential to a country as it provides an enhancement in the standards of living of its citizens. It helps lower poverty rates as well for individuals with low incomes. In fact, economic development is regarded as the main method of lowering poverty in developing and underdeveloped countries.
3. Boosts business confidence
Another key economic development benefit is that it impacts positively on the assurance necessary for running a business. With the gradual increase of profits from small businesses and firms due to economic development, business confidence increases and the business people put more efforts for even better profits.
4. Enhances tax revenues
As a country’s economy rises up, more taxes are collected by the government. This offers the government the extra money it requires for financing various projects. The end product is usually further development for the country.
5. Better public services
Since economic development causes a significant increase in the income possessed by the government, high amounts of money can be spent of different public services such as NHS and education.
However, economic development usually comes about following the continuous extraction of non-renewable resources. With this quick extraction rate, a country might not be capable of sustaining the economic development for a long time.