This development must bring about sustainable increase in living standards which implies that per capita income of the citizens will improve improved education and health as well as an environment that is friendly to human life. It's a concerted effort on the government to steer the direction of private sector of the country or in a city towards creating opportunities that lead to sustainable economic growth that can provide enough incomes to the labor force, enable employers to gainfully engage in business opportunities that eventually can provide enough tax revenue to maintain the country's infrastructure, this support a continued growth. It's therefore important that every country's governing body appreciate the impact of private sector investments in steering the economic development. Although there are several initiatives that enhance investments both domestic and foreign, there is no better alternative to private sector investment as an engine for development. The economic development process requires legal and institutional adjustments which enhance provision of incentives for innovation as well as investments so as to create an efficient production process and distribution system for the goods and services. (Sosale, S, 2000). It is important to know that economic development is different from community development. Community development is a process that is directed to making a community a better place for habitat as well as a better place to work. It's a structured intervention that focuses on giving the communities greater control over the factor that affect their lives thereby giving them confidence to tackle their problems as effectively as possible. Community development work hand in hand with the local groups and organizations that represent communities at local levels (World Bank, 2008, p.67).
Community development may involve improvement of living standards f people in a certain part of a country or region but economic development involves improvement of well being of its people within the different layers of society such that everyone in the country or region has to potential and increased quality of life.
Economic development is simply the creation of wealth in which the community benefits are enhanced. It involves deliberate intervention in the normal economic growth of a country to give positive results. From a public perspective, local economic development is a process that involves allocation of limited resources - land, labor, capital and entrepreneurship in a way that positively effect the countries business activities, Income distribution, employment and poverty reduction efforts. Looking at the various definitions of economic development by different scholars, no single definition captures all the different strands of development although there are common measurement tools like employment increase, improved economic output and increase in tax revenue (World Bank, 2006, p.89).
Economic Growth & development though are largely interrelated; they are different in meaning as used in economics. Most economists use the term economic development to explain the various problems facing the underdeveloped countries and economic growth to in regard to