Development Versus Growth

Healthy children grow bigger, but once people reach maturity at about age 20 continued physical growth is harmful - it makes us fat. It is certainly possible to develop our skills, strength and knowledge, but most adults should not pursue growth as an end in itself. This also applies to communities.

It is important for planners to keep in mind the distinction between growth (getting bigger) and development (getting better). Public policies often reflect an assumption that growth is desirable, that bigger is always better. In contrast, sustainability planning tends to emphasize development over growth, that is, focusing on quality over quantity.

A recent study by Eben Fodor, The Relationship between Growth and Prosperity in 100 Largest U.S. Metropolitan Areas, provides insights to this issue. It measured the relationships between growth and economic prosperity in the 100 largest U.S. metropolitan areas. Population growth rates of each area where compared with economic indicators including per capita income, unemployment rate, and poverty rate. The results raise questions about common assumptions concerning the desirability of growth, particularly rapid growth. Some of his key findings are summarized below.

Figure 1 shows that personal income tends to be lower in faster growing metro areas. It indicates a decline of almost $2,500 in per capita income for each 1% increase in growth rate. This correlation was even larger for the 2008-2009 (i.e., the recession) time period.

Figure 2 shows the percentage change in per capita personal income between 2000 and 2009. While all MSAs showed gains in income over this period, metro areas with higher growth rates had significantly lower gains than slower-growing areas. A metro area with a stable, non-growing population experienced a 43% higher income gain than an area growing at 3% per year.