Economic development is the process by which a nation improves the economic, politics, and social well-being of its citizen. The term Economic development frequently used  by economists, politicians,
and others in the 20th and 21st centuries. "Modernization, "westernization", and "industrialization" are the terms often used while discussing economic development. Economic development has a direct relationship with the environment and environmental issues.
Economic development is a policy which increase the market productivity and rise in GDP. Consequently, as economist Amartya Sen points out, "economic growth is one aspect of the process of economic development". economic development has been understood since the World War II to involve economic growth, namely the increases in per capita income, Economic development originated in the post-war period of reconstruction initiated by the United States. More than half the people of the world are living in conditions approaching misery. Their food is inadequate, they are victims of disease. Their economic life is primitive and stagnant. the systematic, long term government investments in transportation, housing, education, and healthcare are necessary to ensure sustainable economic growth in emerging countries. Economic growth deals with increase in the level of output, but economic development is related to increase in output coupled with improvement in social and political welfare of people within a country. Therefore, economic development encompasses both growth and welfare values. According to Ranis et al, economic growth and development is a two-way relationship. the first chain consists of economic growth benefiting human development, since economic growth is likely to lead families and individuals to use their heightened incomes to increase expenditures,  in second chain human development. At the same time, with the increased consumption and spending, health, education, and infrastructure systems grow and contribute to economic growth.
The relationship between human development and economic development can be explained in three ways. First, increase in average income leads to improvement in health and nutrition known as Capability Expansion through Economic Growth.
Second, social outcomes can only be improved by reducing income poverty known as Capability Expansion through Poverty Reduction.
Third, social outcomes can also be improved with essential services such as education, healthcare, and clean drinking water known as Capability Expansion through Social Services.