Outline the indicators used to identify patterns of development at a global scale and explain their limitations

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Outline the indicators used to identify patterns of development at a global scale and explain their limitations

Development indicators provide a means of measuring aspects of development for which is available and which are, therefore quantifiable. There is no yardstick for measuring development since the development process in multi-dimensioned. There are many development indicators and they are used to identify where poverty is worst, to stimulate debate to where aid is to be given. Development indicators can be split into three major groupings, those based on economic data, those based on social data and those based on demographic data.

To measure development using economic data Gross National Product (GNP) is most commonly used. It’s the total value of goods and services produced in a county in a single year. GNP/capita gives an average value for the wealth of the total population. Its found by dividing the total GNP of a country by its population size. Although GNP figures are easier to measure and obtain than other indicators, there are limitations to their use and validity. The figures are much more accurate in countries that have well-documented economies with many economic transactions and where trade is good, labour and services can be measured as they pass through the market place. Where markets are less developed and trading is done informally through bartering. And most of the good are made for personal subsistence, GNP figures are unreliable. Comparison of GNP figures requires the use of a single currency, usually dollars, but the exchange rates fluctuate. Also, GNP is a vast average and hides extreme distribution of income between and across socio-economic groups. This is particularly true in the LEDCs where there may be a few extremely wealthy people but many poor.        GNP doesn’t take into consideration the local cost of living E.g. US$10 would buy more in India that in the UK. The GNP’s frequent use implies that there is only one way to improve human well being - Western style economic growth. This is false. Other indicators of economic development include Purchasing Power Parity (PPP) This is GNP adjusted to local costs of living. Its takes into consideration the local income of a country and what it can buy there. It does not consider the prices of the commodities in the international market. The price level is made up of internally traded plus internationally traded goods. As the theory confines itself to internationally traded goods the theory does not hold goods in practice. Sectoral Balance is also used. This involves the rising levels of material production and consumption. The higher employment in agriculture, the lower the stage in development the country is in. In developed countries, Highly scientific and mechanised farming methods make labour requirements very small. The Sectorial Balance indicates a countries how far the country has been able to industrialize. But there may be countries that have developed through agriculture. Density of communication and transport networks is also an economic indicator of development. But the density of a country does not always have a relation to its stage in development. For example India  is an LED but has god communication systems.  Energy consumption is an economic indicator of development. The wealthier the county is the more energy it consumes. Its related to industrialisation. This indicator depends on industry, electricity line companies, fuel suppliers, fuel transporters and local authorities providing energy use data. Data might not be provided by some sources, due to commercial sensitivities, and other less accurate methods of estimating fuel use might be used.

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To Measure development using social data, adult literacy rates are a good indicator to use. It shows the amount of population in a country who can read and write. As literacy is a relative concept, no single measure can separate the literate from the illiterate. A cut-off point is not totally appropriate because there are many different forms of literacy. Incidence of doctors/hospital beds indicate the level of heath care provision. This is said to influence the life expectancy of a country. There is no universally accepted definition of hospital beds. Physicians and hospital beds are indicators of available, ...

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