Question

How can development be measured? What are the strengths and weaknesses of these measures from The Process of Economic Development?

Answer 1

Progress is:' the three essential elements of progress are the ability to lead a long and healthy life, to gain knowledge, and to have a decent standard of living.' Many people also believe that a country's political health is an important factor in its growth, including freedom of speech and demonstration.

GNP & GDP

If by its economic status you were to measure a country's development then its GNP (Gross National Product) and GDP would suit correctly. They calculate a country's net income and, although very accurate, do not take into account the country's living standards. With Saudi Arabia, for instance, it rates well on a global scale with a high GDP but poor living conditions, health care and education.

HDI & PQLI

The HDI (Human Development Index) is an indicator of a country's well-being. This is primarily a social calculation because it takes into account education, which is the level of adult literacy and years of education, health care measured by life expectancy, and ultimately the economic component of GDP. The HDI scales between 0 and 1, each of these variables being the highest. The HDI is a very useful growth measure because it incorporates economic and social metrics that reduce any anomalies. The PQLI is very similar to the HDI but involves infant mortality and between 0 and 100 is measured.

Problems with these measures

Above all, the growth metrics have their advantages and disadvantages, the key problems they face are that they focus only on certain aspects of development, socal, financial, political or even enironmental. Because of this, countries tend to be highly rated due to part of their country but are not practically as great as another country.

Strengths include:

It is a statistical approach which is easily measured (as opposed to social indicators). GNP takes into account any income generated by the home-country-based industry abroad and is thus usually seen as a more reliable measure of economic growth than GDP. Highlights a country's growing wealth.