1. Economic growth is an increase in real GDP, while development is a broad concept that entails not only growth, but also include: social, economic, political and human development. Traditionally, the term development had been equated with growth of per capita income. Subsequently, after the mid-twentieth century, other indicators of development such as Human Development Index, measures of inequality, education attainment, level of health care, and so on were set on equal footings with per capita income as a development criteria. Amartya Sen and other development scholars argue that “more intangible goals such as freedom from servitude, enhanced self-esteem, and self-actualization must be considered as development measures”.
Even though it is promising for an economy to achieve growth (an increase in GDP) which is a precondition for development (an actual improvements in living standards), but not a sufficient condition. The characteristic of growth without development has been discussed by many scholars such as Todaro, Kuznets and so on. South Africa has been cited as a country experiencing growth with little or without development and comparing it development figures and with one of it BRICS member. The features are as follows:
i. Inequality: Kuznets argued that “in developing countries economic growth initially leads to high levels of inequality”. Even though the rich save more than the poor, hence inequality aids the process of capital accumulation in developing countries. Although, this does not apply to all countries, because some countries engages in international trade, and during this process capitals are transfers from the poor countries to the rich ones. Therefore, increasing the inequalities in the developing countries and making the rich countries to be rich and the poor to remain poor (Arthur Lewis). Mostly, countries with inequalities are often the ones with natural resources. Inequality has been limiting South Africa’s economic progress for the past two decades, it was simply anticipated that faster economic progress was necessary but it not a sufficient condition to reduce the level of inequality. South Africa has been one of the highest ranked by Gini coefficient, a widely used measure of income inequality. In the late 2000s it reaches the peak of about 0.72 and it is one of the highest ever recorded. Bear it in mind that the root of income inequality in South Africa comes from the labor market.
ii. Low Level of Human Development: HDI was introduced by the United Nations to access the relative level of socio-economic development in countries. The HDI is the combination of Life expectancy at birth, per capita income, and level of education based on the adult literacy rate and the average number of years of schooling of adults. In 2014, South Africa’s per capita income was $6,483, however using purchasing power parity its average income was $13,049. In Russia, income per capita had reached $12,736 by 2014, with a...