How development is measured
Development is a measure of economic, social and technological progress within a country.
Find out how development is measured
Economic indicators of development
developmentThe process of a country becoming richer or having better healthcare and education. is an increase in the standard of livingThe amount of wealth or personal comfort that a person or group of people have. of the people in a country. It includes economic factors, such as wealth, and social factors such as literacy.
Both social and economic indicatorA statistic about the economy that can be used to illustrate a country's level of development e.g. GNP. can be used to determine if a country is developed or developing, and to identify the main similarities and differences between them.
Economic indicators of development
These measure the economic output or wealth of a country. They include GNPGross National Product. Total value of all the goods and services produced in a country in a year along with income from abroad. It is one way of measuring the wealth of a country.) per person, which is the value of goodsCommodities that are sold to make a profit. produced by a country divided by the total population to give an average income for each citizen.
Problems with looking at only one indicator such as GNP are:
- This is an average and so may be easily skewed by a few very wealthy families which may mask extreme povertyA state in which someone is poor, either relatively or absolutely. for the majority of the population.
- It does not take into account the cost of goods which affects what people can buy with their wagesThe money paid to people for doing a job..
- How wealthy a country is does not take into account how this money is used as it does not show data on how well educated people are or how good their dietThe type and amount of food consumed by people. is.
- It does not take into account differences between urban and rural areaAn area of countryside., eg in Brazil between poor favelaA very poor quality house in Brazil (also called a slum). areas and wealthier inner cityThe land use zone made up of the old industrial zone and old housing zone..