Brad Cartwright

Development economics, for me, is the most fascinating segment of economics.

Why?

Because it’s not just about numbers, graphs, or abstract theories—it’s about humanity.

It dives into the relationships between developed and developing nations, exploring why they interact, how they benefit from one another, and what drives those interactions.

At its core, it examines how the choices of nations impact real lives, making it a study not just of economies, but of people.

Development economics asks profound questions:

• What attracts investment, aid, or grants to a developing nation?
• How can a developing country compete in today’s global economy?
• Why is there a McDonald’s, Nike, or Adidas in so many parts of the world?

These questions lead us to understand the “why” behind the global economic web we see today.

Economic Growth vs. Economic Development

Before diving deeper, it’s crucial to distinguish two key concepts: economic growth and economic development. These terms often get lumped together, but they’re profoundly different.

• Economic Growth: This is the change in a country’s national output, often measured by Gross Domestic Product (GDP) or Gross National Income (GNI). It tells us if a country’s economy is expanding or contracting but says little about the welfare of its people.
• Economic Development: This goes beyond numbers. It’s about well-being—improving living standards, reducing poverty, and increasing freedoms. Development is measured not only by monetary metrics like GDP but also by indicators like health, education, and happiness.

Economic growth is a necessary step for development, but it’s not the full picture. Growth can create jobs and wealth, but development asks, “Are people better off? Are their lives improving?”

Measuring Development

The contrast between growth and development becomes clear in how they’re measured. While GDP gauges economic growth, the Human Development Index (HDI) assesses economic development. The HDI considers:

• Health Indicators: Life expectancy, infant mortality rates.
• Education Indicators: Access to primary, secondary, and university-level education.
• Social Indicators: Measures of happiness and overall well-being.

This multidimensional approach captures the complexity of development.

It’s not just about increasing incomes—it’s about improving lives.

 

Why Development Economics is So Powerful

For me, teaching development economics is about connecting economics to the human experience. It’s about understanding how growth affects real people and how economic policies shape societies.

• Expanding Freedoms: Economic development increases education levels, which, in turn, raises demand for freedoms. History shows that well-educated societies are less tolerant of autocratic rule and more likely to demand civil liberties and human rights.
• Reducing Poverty: Development economics focuses on improving public education, healthcare, and law and order, ensuring that even the most vulnerable populations benefit.
• Civic Participation: With better education and living standards, people are more likely to engage in civic life, making their voices heard and contributing to the governance of their countries.

Development economics, therefore, goes beyond statistics—it speaks to the heart.

It’s about seeing people as more than data points, understanding their struggles and aspirations, and equipping ourselves with the tools to make informed judgments about economic systems.

Why This Matters

Development economics brings economics to life.

It’s a lens through which we can analyze the world, assess the impact of policies, and understand the dynamics between nations.

More importantly, it reminds us that economics is ultimately about people—their hopes, challenges, and opportunities.

This is why it’s my favorite part of economics to teach.

It’s not just about theory or policy—it’s about making sense of the human side of economic activity. It’s about helping students see the world more clearly and inspiring them to think about how they can contribute to a better future.

And I like that.  

A lot.

If you are interested in learning more about Development Economics, join 6,300+ students worldwide who have purchased my course called, The Global Economy.