Paternalistic state and economic development of society

The article considers the problems of the relationship between economic growth and economic development. The author argues that the most important issue is the problem of society development, which is not reduced only to economic growth and even to economic development. Society development includes not only the economic sphere, but also spheres of culture, education, health care, and science as well. At the same time, an important component of society development is the well-being of the majority of people, including the reduction of excessive socio-economic inequality. Today, in Russia, it is particularly urgent to reduce excessive inequality. The article shows that economic growth in modern statistics is measured incorrectly, based on anAmericanesque system of national accounts which is based on monetary values rather than real output. In the Soviet period, the GDP and, consequently, economic growth were measured on the basis of the balance of national economy, taking into accountthe increase in real product rather than monetary value. Therefore, it is not correct to measure economic growth based on the system of national accounts. The article concludes that in today's Russia there is no signifi cant economic growth and even lesseconomic development. This indicates a very weak state paternalism. All this is shown on the basis of offi cial statistics.