The primary purpose of economic growth is to make the world a better place. This statement could be considered to be a utopia – a realm where everything is possible and everything will be great, provided only that one has the right attitude. Economic policies may seem senseless and it may even seem unlikely that they will have any significant effect on society or the state of the economy. However, in today's uncertain times, the necessity to improve the living standards of people in various countries, as well as the need to increase living standards of other nations, is no mystery at all. The real question is, what is the best way to achieve this kind of development?
When creating a strategy for economic policy, a fundamental question to ask is what kind of society would we want to have, one that is prosperous and free from corruption and other social evils, as well as one that is able to sustain economic growth, expansion, and prosperity for the years to come. In other words, what are our goals? What are the things that we expect to gain out of such policies?
To put it simply, economic development is not an end in itself. It is a means to an end – a development which leads to a better standard of living, political security, and other benefits. If economic policy is to be successful, it must be accompanied by sound social policies and a universal economic education, so that people understand the nature of their situation, as well as what they can realistically hope to gain from such a development.
The purpose of economic growth is to enable people to take full advantage of technology, art, knowledge, and other innovations. Without these developments, people will find it very difficult to compete with others and will thus have a relatively unhappy existence. Moreover, the rapid changes taking place in all these areas tend to make life much more interesting, as a whole. Ultimately, economic growth is a positive thing because everyone benefits when economic conditions improve. Nevertheless, a proper development process needs to be undertaken, with adequate analysis, planning, implementation, monitoring, and evaluation. Otherwise, people may take the development for granted, and in fact may contribute to its reversal or deterioration.
Economic development is a positive process, because it tends to improve the living standards of the bulk of the population. Obviously, everyone would like to enjoy good health, strong relationships, easy access to quality education and employment, and so on. All these advantages tend to enhance the overall well-being of the nation as a whole. However, the process must be carefully planned and implemented, and this calls for a certain amount of expertise. The growth of the country can hardly be effective unless and until the appropriate policies are in place. In addition, the way the economy flourishes must be closely watched and monitored by experts.
One important purpose of economic development is to ensure employment. The more people there are to work in a nation, the more money there is to be . . . . . . made. Proper implementation of policies is important to achieve this purpose. In addition, public policies need to promote better education and training for everyone, as this serves to ensure a higher level of income, which can be used for other purposes as well.
Besides all these important purposes, economic growth is also beneficial to the environment. As the means of economic development opens up more opportunities for private investment, pollution, and degradation of the environment is minimized. Improved healthcare and nutrition are also achieved as the result of greater income levels. It also facilitates the development of the country's natural resources, such as water, forests, and wildlife.
One of the most widely acknowledged benefits of economic growth is that it improves the quality of life for all people. With improved healthcare and nutrition, people become more active and productive, and this leads to economic development. More people can afford to invest in businesses and earn high incomes, resulting in a stronger and more vibrant economy. In the end, everybody gains.