Contrasting Ways of Defining Development
Development is a complex process that involves improving people’s quality of life and well-being. It can be understood through different perspectives, including economic, social, and political dimensions:
- Economic Criteria: Economic development focuses on wealth creation and financial growth. A common way to define economic development is by looking at how much money people earn, which is often linked to the standard of living. Economic measures usually emphasise aspects such as:
- Employment rates
- Income levels
- Industrial growth
- Infrastructure improvements
However, relying solely on economic criteria can be misleading, as it doesn’t capture other essential aspects of development, such as quality of life or equality.
- Broader Social and Political Measures: Development can also be defined more broadly to include social and political factors that contribute to overall well-being:
- Social development: This involves factors like education, healthcare, life expectancy, and literacy rates. A high level of education and access to quality healthcare are often seen as key indicators of a developed society.
- Political development: This examines governance, the protection of human rights, and political freedoms. Countries where people enjoy freedom of speech, fair elections, and transparency in government are often considered politically developed.
In this way, development is not only about wealth but also about improving people’s health, education, and political freedoms, which together create a more comprehensive view of progress.
Development occurs when various factors contribute to the enhancement of quality of life. For instance, in a developing country, development occurs when the local food supply grows due to investments in farming equipment.
Measuring Development
Various methods and indicators measure development, highlighting different aspects of a country’s progress.
Gross Domestic Product (GDP) per capita and Gross National Income (GNI) per capita
GDP per capita is a common economic indicator used to measure development. It calculates the total value of all goods and services produced in a country (GDP) divided by the population. While GDP per capita provides insight into a nation’s economic output, it doesn’t show the distribution of wealth or account for other aspects of well-being.
Gross National Income (GNI) per capita is more frequently used to measure national wealth. It is similar to GDP but also considers wealth created outside the country by corporations and companies, as well as debt.
The map below shows GNI per capita for 2022.
One issue with GNI is that it does not consider variations in the cost of living in different countries. For example, more can be bought with a dollar in China than in the USA. To overcome this, purchasing power parity is calculated.
Human Development Index (HDI)
The HDI is a composite (combines multiple indicators to provide a broader, more comprehensive view of development.) measure developed by the United Nations and considers aspects of both social and economic development (but not environmental factors), including:
- Life expectancy (health indicator)
- Education level (measured by average years of schooling and expected years of schooling)
- Income (GNI per capita)
HDI provides a more balanced view of development, combining economic, social, and health factors. Countries are ranked on a scale from 0 to 1, with higher scores indicating higher levels of human development.
HDI can be used to group countries into four categories:
- Very high level of human development with a score of 0.800 and above, which are referred to as developed countries
- High level of human development with a score between 0.700 and 0.799, which are referred to as emerging countries
- Medium level of human development with a score of 0.550 and 0.6999, which are referred to as emerging countries
- Low high level of human development with a score of below 0.550, which are referred to as developing countries
Measures of Inequality – Gini Coefficient
Inequality within a country can show how evenly or unevenly wealth and resources are distributed. A common way to measure this is through the Gini coefficient, which ranges from 0 (complete equality) to 1 (complete inequality). Like many in Sub-Saharan Africa, countries with a high Gini coefficient often have significant wealth disparities, while European countries typically have lower inequality.
Indices of Political Corruption
The quality of governance plays a crucial role in development. The Corruption Perceptions Index (CPI) ranks countries based on how corrupt their public sectors are perceived to be, using a scale from 0 (highly corrupt) to 100 (very clean). Corruption often hampers development by limiting access to resources and services. For example, in 2023, countries like Denmark and New Zealand were seen as the least corrupt, while nations such as Somalia and Afghanistan were ranked among the most corrupt.
While measured in various ways, inequality is widely considered to be on the rise. This trend raises concerns as many view it as unjust and a potential source of political instability, potentially fueling anti-government protests.
Each of these measures highlights different aspects of development. While economic indicators like GDP per capita focus on wealth, broader measures like HDI and the CPI consider social and political factors, giving a fuller picture of a country’s overall development. However, no single indicator is sufficient to capture the complete reality of development, making it essential to use multiple metrics for a more accurate assessment.
