Measuring Development: Evolution of Methods and Criticisms

Study Notes

Introduction

Measuring development involves using metrics and indicators to assess the overall progress of countries and their citizens. Over the years, various methods have been employed to capture the complexity of development, moving beyond the narrow focus of Gross National Product (GNP) to a broader understanding of the "good life for human beings". This article explores different measures and methods used in assessing development, focusing on their evolution through time.

Early Developments in Measuring Development

In the early post-war decades, development was often equated with economic growth, measured by indicators such as GNP per capita. However, this narrow approach was challenged in the 1970s when there was a shift towards measuring social well-being. The United Nations Research Institute for Social Development (UNRISD), led by Tinbergen and Myrdal, developed a set of composite social indicators in order to provide a more comprehensive understanding of development.

Despite being seen as technologically sophisticated, these indices were criticized for being too complex and insufficiently transparent. As Ghai asserted, development has many dimensions, and it is not just about industrialization or GDP; rather, it encompasses various aspects including poverty reduction and income redistribution.

The Human Development Index (HDI)

The HDI, introduced by Amartya Sen and Mahbub ul Haq, is the most widely used measure of development today. It takes into account three essential components: health, education, and standard of living. Each component is given equal weightage, resulting in an overall score that ranges from 0 to 1. A higher HDI indicates greater development.

Criticisms of the HDI

While the HDI offers valuable insights into a country's development status, it has faced criticism due to limitations such as the lack of consideration of happiness levels, inequality within countries, and sustainability of development over time.

Evolution of Measures of Development

Since the 20th century, economists have recognized the need for more nuanced approaches to measuring development. Adjustments to traditional metrics like GNP and the introduction of new concepts such as quality of life and general welfare are ongoing attempts to address these concerns.

Conclusion

Measuring development requires multifaceted approaches considering various socioeconomic factors beyond simple economic indicators. From the UN's perspective, development should focus on creating a good life for people, which includes factors like access to basic services, education, and health care. These efforts highlight the evolving nature of development measurement, ensuring that we continue to capture the complexity of development in an increasingly interconnected world.

Description

Explore the evolution of methods in assessing development, from early focus on economic growth to the introduction of the Human Development Index (HDI). Learn about criticisms of the HDI and the ongoing evolution of development measurement techniques.