Measuring Development

Concepts of Development

Economic Development: Refers to the progress in the standard of living, typically measured by GDP, income per capita, or the structure of the economy.
Social Development: Refers to improvements in factors such as education, healthcare, life expectancy, and quality of life.
Sustainable Development: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It has three pillars: economic, societal, and environmental sustainability.

Gross Domestic Product (GDP): Measures the total value of goods and services produced by a country in a year. However, it does not account for income inequality or non-economic aspects of living standards.
Gross National Income (GNI): Includes GDP plus the net income received from overseas. This indicator takes into account international income flows.
Human Development Index (HDI): Measures the average achievements in a country in three basic dimensions of human development: a long and healthy life, access to knowledge, and a decent standard of living.
Physical Quality of Life Index (PQLI): A composite measure of literacy rates, infant mortality, and life expectancy.
Gini Coefficient: Measures income inequality within a country, with 0 representing perfect equality and 1 representing perfect inequality.

Rostow’s Stages of Growth: This linear model proposes five stages a country goes through in its development process - traditional society, preconditions for take-off, take-off, drive to maturity, and age of mass consumption.
Dependency Theory: This perspective emphasises that western nations have developed at the expense of less developed countries, leading to a relationship of dependency.
World Systems Theory: Proposes a core, semi-periphery, and periphery model to explain economic interdependencies between countries.

Social Impact: Lower levels of development often correspond to higher poverty rates, lower levels of education, poor health outcomes, and limited access to services.
Economic Impact: Lesser-developed countries often rely more heavily on a limited range of exports and may struggle to attract foreign investment.
Political Impact: Differences in development levels can lead to political instability or conflict.

Many development indicators focus solely on economic factors and overlook social measures of development.
Composite indicators, like HDI, might hide inequalities within a country.
Cultural differences may not be taken into account, as development is often defined by Western standards.
Some development models may present an oversimplified view of complex economic realities.