Development indicators (1)

1. Indicators of
Development

2. Gross Domestic Product
(GDP)
• Total production of a country in a given time
period (usually 1 year)
• Measure of economic wealth
• Used by World Bank

3. Limitations of GDP
• Does not reflect distribution of wealth and
inequalities (only aggregate wealth)
• Does not account for subsistence or informal
economies
• Limited to economic growth
• Not representative of standard of living in a
particular country
• Adverse events (i.e. natural disasters) are not
accounted for

4. Human Development Index
(HDI)
• Created by United Nations as more comprehensive
measure of “development”
• Measures longevity, knowledge, and standard of
living
• Uses these criteria:
• GDP per capita (standard of living)
• Life expectancy (longevity)
• Literacy rate (education)
• Attendance in primary, secondary & higher education
(education)
• Number between 0 and 1

5. Case Study: India
• 2nd fastest growing economy in the world (by GDP
growth)
• Among lowest quarter of HDI ranks (135th/187)
• Extreme urban and rural poverty
• Insufficient national spending on health, education, etc.

6. GDP (USD)

7. GDP Growth (annual %)

8. HDI