What Constitutes Economic Development?

Economic development in general involves policies and efforts that seek to improve the economic well-being and quality of life of a nation, a people, a community or region by creating and/or retaining jobs and enhancing incomes. 

Through the years, different types of programs and plans for economic growth have been drafted with the aim of uplifting the lives of everyone in the community. However, it has been the practice that with every change in the administration, changes in economic policy ensue. Challenged by the never-ending economic issues like lack of jobs, soaring unemployment and a dismal economy usually provide enough impetus for the economic department to draft new plans for economic development.

Concretely, economic development requires distribution of limited resources. Resources such as land, labor, capital and entrepreneurship to enhance business activity, and employment are essential in defining the quality of life.

Economic development can sometimes be confused with community development. Both concepts have their similarities. However, community development is only one part of a much wider scope of economic development. Community development is the process of making a community a better place to live and work in. Economic development is the creation of wealth so that community benefits are created.

1. Increased Taxes. Added revenue from taxes means more funds to support and maintain roads and parks, transportation facilities and emergency medical services.
2. Creation of jobs. Economic development makes possible the establishment of more profitable business and corporations. This translates to more work, better wages, improved benefits, and better opportunities in the workplace.
3. Establishment of businesses. Businesses exist mainly for profit. But as long as businesses see that the community is availing of their services and/or products and they get the cooperation of community leaders, those businesses will most likely stay in the community and further contribute to the local economy. 
4. Expansion and diversification of the economy. When the people have different sources of income and grow to have various types of businesses, the community's economy becomes more stable.
5. Self-sufficiency. As people earn more, and as more jobs come in, there is less dependence on public services from the government.
6. Improved quality of life. As more jobs are available at the local level, unemployment is reduced. This means that more families are experiencing better lives as commerce within the community starts to thrive.

But no matter how many economic programs are drafted and implemented, if these are half-hearted attempts periodically launched on a quarterly basis, then attaining economic growth and development will not be achieved. Sustainability is the final key to economic development.  Ensuring sustained economic growth is the engine that will make possible profitable business opportunities for employers, provide income for labor and employees, and make available tax revenues that will enable government to provide public services and maintain infrastructure to support continued growth.