What is economic development?

Economic development is fundamentally a broad measure of welfare that encompasses improvements in various aspects of human life, such as health, education, and overall quality of life. This perspective goes beyond merely considering economic output, as it recognizes that enhancing people's well-being and capabilities is crucial for true development.

When discussing economic development, it is important to consider indicators such as life expectancy, access to education, healthcare availability, and living standards, which reflect how well citizens can meet their needs and improve their circumstances. Thus, focusing on health and education as integral components of development facilitates a more comprehensive understanding of a nation's progress and the quality of life for its residents.

Other options do not capture the essence of economic development effectively. Military capability, increasing GDP without consideration for social aspects, and labor productivity metrics may provide specific insights but fail to encompass the broader dimensions of welfare and improvement in quality of life that define economic development.