Measuring development


Poverty traps/poverty cycles

GDP & GNI per Capita

GDP per Capita - Total of all economic activity in a country regardless of who owns the productive assets, divided by the number of people in the population. 

GNI per Capita - total income that is earned by a country’s F.O.P regardless of where the asset is located divided by the number of people in the population.

--> IF the amounts of FDI are large, then GDP figures will be higher than GNI since GDP includes profits that may have been repatriated.

GDP per capita & GDP per capita at PPP (purchasing power parity)

Health measures

  1. Life expectancy by birth
    1. Average number of years that a person may be expected to live from the time that they are born.
    2. Factors: level of health care & health care services; provision of clean water supplies & sanitation; provision of nationwide education; supplies of food; diets & lifestyles; levels of poverty; level of conflict.
  2. Infant mortality rate
    1. Measure of the number of deaths of babies under the age of 1 year per thousand live births in a given year

Education Measures

  1. Adult literacy rate
    1. Measure of the proportion of the adult population, aged 15 or over, which is literate expressed as a percentage of the whole adult population for a country at a specific point of time
    2. Influenced by the above factors + distribution of income within the country
  2. Net enrolment ratio in primary education
    1. Measure of the ratio of the number of children of primary school age who are enrolled in primary school, to the total number of children who are of primary school age in the country

Composite measures

  1. HDI
    1. Life expectancy at birth - Long and healthy life
    2. Education – adult literacy rate combined with a measure of primary, secondary and tertiary school enrolment
    3. Decent standard of living – GDP per capita




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