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Problems with Economic Measures of Development

Measuring development by looking at the money and wealth of a country has problems. There are many things that this measure of development cannot tell you about quality of life in a country.

GDP

GDP

  • One problem with measuring development using GDP or an GDP per capita is that it doesn’t tell you how much money each individual person in a country actually has.
  • It only gives you the overall figure (GDP) or an average (GDP per capita).
Inequality

Inequality

  • So, a country’s GDP may look high but the wealth may belong to a few billionaires and the majority of the population may live in poverty and be very poor.
  • Inequality is the difference between rich and poor.
  • GDP does not measure this.
Government spending

Government spending

  • Another big problem is that the total GDP figure for a country does not tell you anything about what the government spends this money on.
  • If a country has a very high GDP but doesn’t spend it on improving the quality of life for the people in that country, is it still developed?
Government spending cont.

Government spending cont.

  • For example, a country with a very high GDP could spend it on weapons and nuclear weapons instead of providing a clean water supply for all of the people in that country.
  • Is it still a developed country?
Jump to other topics
1

Geography Skills

2

Geology of the UK

3

Geography of the World

4

Development

5

Weather & Climate

6

The World of Work

7

Natural Resources

8

Rivers

9

Coasts

10

Glaciers

11

Tectonics

12

Climate Change

13

Global Population & Inequality

14

Urbanisation

15

Ecosystems

16

Life in an Emerging Country

17

Analysis of Africa

18

Analysis of India

19

Analysis of the Middle East

20

Analysis of Bangladesh

21

Analysis of Russia

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