Economic development is a process by which the education, well-being, health, income and standard of living of the general population improves. This is where the economy will gradually grow, change and become advanced. In other words, B2B Email List a nation achieves economic development when emerging economies become advanced economies and you can see a gradual shift from agriculture to industry to services which will result in economic growth.
Economic development is the priority of local, state and federal governments because it will lead to improved innovation and new ideas, higher literacy rates, job creation, an improved environment, to the creation of greater wealth, the support of the workforce and a better quality of life. Economic growth and development is an important field of study that students can study at institutions such as the Norman Paterson School of International Affairs and the International Institute of Social Studies.
One of the world's most renowned economists, Amartya Sen, views economic development as “the creation of freedom for people and the removal of barriers to greater freedom”.
Types of indicators and indices of economic development
Although economic growth and economic development are related, they cannot be used in the same context. Economists use different types of economic development indicators and indices or measures to assess the growth and development of a country or region.
Some of the most popular types of economic development indicators or indices available are:
1. Human Development Index (HDI)
The Human Development Index (HDI) is one of the most popular types of economic development indicators and indices that help measure the average achievements of a country. It was introduced as part of the United Nations Development Program (UNDP) in 1990. It takes into consideration three variables related to the standard of living, knowledge and the longevity of human development. HDI measures standard of living by GDP per capita income, knowledge by combining adult literacy rate and total gross enrollment rate in tertiary, secondary and primary education and longevity by life expectancy of life at birth. This composite indicator tracks changes in a country's level of economic development over time.
2. GDP per capita – growing development population
GDP per capita is a type of economic development indicator and indices that can be calculated by dividing the domestic product by the mid-year population. This measure of global prosperity is used by economists to find and analyze a country's economic productivity and prosperity. It is easy to use as its components can be tracked globally.
3. Introduction of GDI and GEM
The UN created the Gender Development Index (GDI) and the Gender Empowerment Index (GMI) to measure a country's gender equality. Both are common types of economic development indicators and indices that were introduced in the UNDP Human Development Report of 1995.
4. Gender Development Index
The GDI is often thought of as a composite indicator used to measure the average achievement of a country's population while adjusting for gender inequalities. This type of economic development indicators and indices are used to know the gender gap by taking into account the differences between men and women through variables such as standard of living, knowledge and health.