Developing countries experiencing significant growth without improving the welfare of their citizens can face serious consequences. Welfare refers to the health, happiness, and prosperity of individuals, and is closely linked to income. If economic growth outpaces welfare improvements, it can lead to decreased short-term and long-term growth. In some cases, only a small elite benefits from growth while the rest of the population remains impoverished. Factors like prosperity, happiness, and freedoms can also impact welfare independently of economic growth.