Economy is just part of development?

You have not asked a question.

Greek oikonomia is a household. The English word means management, as in the class Home Economy. Since management always involves pinching pennies, the word comes to mean money management and frugality. Let's pretend you bought a pencil. What color? Did you buy a brand, or look for a certain type, or just grab the one nearest the checkout line? If you add up all decisions made in an area, that constitutes the economy of that area. It is usually measured in the local money for convenience, but don't make the "Broken Window" mistake. That is the proposition that if you break a window, the economy is enriched by the cost of its replacement. The US government actually did that a few years ago, giving people money to buy new cars if they junked their old cars. Suddenly the prices of used car parts skyrocketed because they were so scarce. To top it off, most of the money went to foreign car makers, because Americans mostly do not care for domestic models. Politics and economy are very closely intertwined, but the one is not the other.