Hello Dear friends welcome to KhanStudy, In today’s article we are going to know about the basic 5 Indicators of economic development or the Economic Indicators of development. So let’s discuss in details.
Table of Contents
What are the Major Indicators of Economic Development?
Measurement of economic development and express it in the definite index is a very difficult task in economics. So many indicators of economic development are found to measure the level of economic development of of a nation.
However, some common and popular the 5 indicators of economic deveelopment that used to measure economic development are discussed below –
• GNP Index – Economists like Simon Kuznets, Paul Albert, etc. have considered that increase in real GNP in the long run is a good indicator of economic development. An increase in real GNP results in an increase in economic activities and then creates more employed opportunities. It helps to maintain maximum welfare in the society.
• Per Capita Income Index – In terms of this indicator, development is said to take place if the growth rate of national income exceeds the growth rate of population. It reveals that the country is getting off gradually and the availability of goods and services has increased. This index is especially suitable in developing countries.
• Physically Quality of Life Index (PQLI) – PQLI is a common indicator of development. It is computed or calculated from life expectancy at birth, infant mortality rate of population. If people live longer and are literate, PQLI value will be high. PQLI is measured on a scale of 1 o 100. If its value crosses 50, the country is supposed to be advanced and if the value lies below 50 the nations are supposed to be developing. PQLI as an index was developed by Morris D Morris, which measures only personal facts.
• Human Development Index (HDI) – The HDI is an indicator introduced United Nations Development Programme (UNDP) in the World Human Development Report in 1990. Since then, it has been the most popular indicator of development. It measures development in terms of people’s real income level, education, health, environment and gender issues.
• Basic Needs Approach – This requires on assessment of development in terms of the extent to which the basic needs of the population, in particular of the poor, are satisfied. The approach involves satisfying the minimum levels of physical needs. This line of thinking considers even PQLI as inadequate and less helpful in fighting the many evils of poverty.
FAQs
What is the full form of GNP?
Ans:- Gross National Product.
What is the full form of PQLI?
Ans:- Physically Quality of Life Index.
What is the full form of HDI?
Ans:- Human Development Index
What is the full form of UNDP?
Ans:- United Nations Development Programme.
Conclusion
So friends, this was the basic Indicators of economic development. Hope you get the full details about it and hope you like this article.
