Question

What difficulties are encountered in trying to measure economic development, international poverty and inequality, and how have international institutions sought to overcome them? (Please to be speicific how the institution overcome them)

Answer 1

Some of the difficulties likehigh frequency povrty measures,inadequate data regarding the population, black market details, continuous change in the value of assets, volatality of currency etc made it a real tough time for the international organiations to measure economic development, international poverty and inequality on the whole. However, various international institutions got to overcome these difficulties by establishing relative indices measure with the aid of the previous statistics avaialble with which they could achieve results that got more accuracy than before on the whole. For example, if the average income in the country at present is more than that of the average income ten years ago, however, it doesn't mean that the average has increased and this is because of the growth of currency on the whole and a relative index is used in tracking the change in currency and then calculate the average income.