THE RELATIONSHIP BETWEEN ECONOMIC GROWTH AND SOCIAL WELFARE

Abstract

During the 1950s to early 1960s, development policies were aimed primarily at maximizing economic growth through the process of capital accumulation and industrialization. Even so, these economic benchmarks do not seem to fully show an improvement in the quality of life of the community. Entering the late 1960s and early 1970s, economic development underwent a redefinition, the view began to emerge that the main objective of economic development efforts was no longer to focus on aspects of high economic growth, but how to reduce poverty and inequality, such as the development of growth with equity (redistribution with growth) and fulfillment of basic needs (basic need approach). Even so, this thought does not boil down to a solution that is able to overcome the development problems that occur.