SANDIP.

K
 Economic Development, being a
multidimensional process, is not accurately
reflected in a single measure.
 Distinguishing Individual attributes of
countries according to their level of
economic or human development.
 These attributes are measured using
Indicators.
 An indicator is a measurable variable that
indicates the state or level of something
being measured.
 Example: GDP per capita is an indicator of
the level of output per person.
 The data comprising economic or human
development indicators are compiled by
international organizations such as the
World Bank and United Nations agencies.
 Monitoring how a country changes over time
with respect to the attribute measured by
the indicator.
 Making comparisons between countries with
respect to the attribute.
 Assessing how well a country is performing
with respect to particular goals or targets of
development.
 Devising appropriate policy measures to deal
with specific problems.
 Since development is a multidimensional
process, it is often necessary to combine the
use of many indicators to obtain an overall
picture of a country’s level of development.
 Indicators are based on statistical
information, and this poses a distinct set of
problems:
• Some countries have a limited capacity for
collection of statistical data.
• Data are not fully available in many
countries.
 There are many indicators used as measures
of different characteristics of an economy
and of dimensions of development.
 They are compared on different basis.
 Some major comparing are GDP per capita
and GNI per capita, Health Indicators,
Education Indicators.
 GDP is an indicator of the value of output
produced within a country, and GNI is an
indicator of the Income received by the
residents of a country.
 For some countries the difference in the
sizes of GDP per capita and GNI per capita is
not very large.
 This happens when inflows of income into a
country are roughly balanced by income
outflows, or if most of the production in a
country is by factors of production owned by
its residents.
 When a country has many workers
from other countries has
decreased GNI relative to GDP,
because the wages and profits of
the foreigners are excluded from
the country’s GNI though they are
included in GDP.
 On the other hand, inflows of
money into a country from
workers abroad or from
corporations located abroad
increase the size of GNI relative to
GDP, making GNI per capita higher
than the value of GDP per capita.
 When we want to compare GDP and GNI
across countries the information will be
misleading.
 Different countries have different price
levels.
 The PPP is used to calculate the price level
of an individual country and it is converted
into USD for comparison across countries.
 Health indicators measure characteristics of
populations elated to health.
 Three commonly used health indicators are life
expectancy at birth, infant mortality and
maternal mortality.
 Life expectancy: At birth refers to the number
of years one can expect to live.
 Infant mortality: Refers to the number of
infant deaths from the time of birth until the
age of one, per 1000 live births.
 Maternal mortality: Refers to the number of
women who die per year as a result of
pregnancy-related causes, per 100 000 live
births.
 Adequate public health services and
prevention of communicable diseases.
 Adequate health care services with broad
access by the entire population.
 A healthy environment, including safe
drinking water, sewerage and sanitation, and
low levels of pollution.
 An adequate diet and avoidance of
malnutrition a high level of education of the
entire population.
 Absence of serious income inequalities and
poverty.
 Education indicators measure levels of
educational attainment.
 They are of three types adult literacy rate,
primary school enrolment, secondary school
enrolment.
 Adult literacy rate: Which measures the
percentage of people aged 15 or more in the
population who can read and write.
 Primary school enrolment: Measures the
percentage of school-age children who are
enrolled in primary school.
 Secondary school enrolment: Measures the
percentage of children enrolled in secondary
school.