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Economic development does not only include economic growth or growth of GDP , it encompasses overall economic well being along with rise in national income . So governmental and non-profit organizations must invest in infrastructure development , healthcare , education and controlling crime rate . These endeavours will not be taken up be private organizations and if private orgatizations provide education and healthcare they will be under produced as they have positive externalities . Policies such as investment in public health services , government schools , security services is necessary .
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