PROBLEMS WITH USING MONEY UNITS TO ASSESS DEVELOPMENT 1. Real value of a currency can change over short periods, so US dollar is used, conversion creates distortions due to inflation 2. Does not reflect the actual purchasing power of a currency within a country (costs vary country to country) 3. Much output does not enter international trade 4. Socialist countries may have different definitions of national income 5. High local costs due to cold winters or the size of a country eg. Russia lead to problems due to money spent on clothes, heating and transport 6. GNP gives no indication of how money/wealth is distributed within a country. A rising GNP may show a country is wealthier while the poorest citizens remain extremely poor
QUALITY OF LIFE INDICES multivariate/composite measures 1. Physical quality of life index PQLI 2. Human development index HDI 3. International human suffering index IHSI
(1) Physical Quality of Life Index (PQLI) · Composite indicator devised by the Overseas Development Council in 1977. · Indexed from 0 to 100. (O is the worst, 100 is the best) · Based on: *Life expectancy *Infant Mortality Rate *Adult Literacy Rate · Index greater than 77 suggests that the minimum requirements for development are satisfied. · Limited, due to the small number of variables. Oil rich nations have large GNP per cap. But lower PQLI Other countries eg. China and Sri Lanka have low GNP per cap. But ‘highish’ PQLI AVERAGE OF 3 RATES TAKEN
ANGOLA 20 INDIA 42 BRAZIL 72 CHINA 75 SINGAPORE 86 PQLI Recent PQLI data for developing nations The most developed countries will have a PQLI very close to 100 Is Singapore now developed?
(2) Human Development Index (HDI) · Devised in 1990, when the UN Development Programme realised that income growth/ economic measures were not good indicators of development. · HDI consists of; *Real income per capita (PPP) ECONOMIC *Educational attainment, given by adult literacy rate combined with the mean number of years of schooling. SOCIAL *Life expectancy at birth. DEMOGRAPHIC
3) International Human Suffering Index (IHSI) · Developed in 1987 by the Population Crisis Committee of Washington DC · Gives an indexed score, from 0 to 100. Unlike the PQLI, the lower the score, the better. · Score is based upon; *GNP per capita. *Rate of inflation *Growth of labour force *Urban population growth rate. *Infant Mortality Rate. *Daily calorie supply as a % of requirements *Access to clean drinking water. *Energy consumption per capita *Adult literacy rate *Personal freedom The 10 indicators genuinely reflect overall quality of life But scoring is a little subjective in some cases
The Problems With Indicators of Social Development. · They do not accurately reflect the inequalities within the given set. They do not reflect income distribution. · There is still a lack of agreement on a universal system of measuring social development. Some indicators change daily, e.g. freedom of speech, right to vote, political freedom, etc. · The other problem is associated with the collection of data, for some of the following reasons; *Very few census surveys take place in LEDCs. *Registration is inadequate and unrepresentative. *Only the better educated, wealthier people can understand the registration procedures. *Refusal to fill in forms for political or personal reasons.
· Reasons for an unreliable census ; * Too costly for some LEDC’s. * Incomplete mapping. * Lack of trained staff. * Hard to record nomadic peoples. * Transport difficulties. * Male staff unable to interview women in the Middle East and Indian subcontinent, due to cultural differences. * Language (regional dialects) difficulties. * Low literacy levels. * They can be adapted to portray something entirely different for political reasons.