Economic Development

Economic development is a process of increase in total income and income per capita by taking into account the population and is accompanied by fundamental changes in the economic structure of a country.

Economic development can not be separated from economic growth (economic growth); economic development to encourage economic growth, and vice versa, facilitate the economic growth process of economic development.

What is meant by economic growth is the increase in production capacity of an economy are realized in the form of an increase in national income [1]. A country is said economic growth in the event of an increase in real GNP in the country. The existence of economic growth is an indication of the success of economic development.

The difference between them is the success of economic growth more quantitative, ie the increase in income and the standard output is produced, whereas the more economic development is qualitative, not only increase production, but there are also changes in the structure and allocation of production inputs on various sectors of the economy such as in institutions, knowledge, and techniques.
[edit] Factors
Natural resources owned by affecting economic development.

There are several factors that affect the growth and economic development, but in essence these factors can be grouped into two, namely economic factors and noneconomic factors.

Economic factors that affect economic growth and development of which is the natural resources, human resources, capital resources, and expertise or entrepreneurship.

Natural resources, including land and natural resources such as soil fertility, climate / weather, forest products, mining, and seafood, greatly affect a country's industrial growth, particularly in the provision of raw materials production. Meanwhile, skills and entrepreneurship needed to process raw materials from nature, becomes something that has a higher value (also known as the production process).

Human resources also determine the success of national development through the number and quality of the population. Large number of population is a potential market to market production results, while the quality of the population determines how much productivity is there.

Meanwhile, capital resources humans need to process these raw materials. Capital formation and investment aimed to explore and cultivate wealth. Capital resources in the form of capital goods is very important for the development and facilitation of economic development because of capital goods may also increase productivity.

Noneconomic factors include socio-cultural conditions in society, the political situation, and developing systems and regulations.