Problems with Using a Single Indicator

• Single indicators are too broad they are averages which disguise wide internal variations. For example, a few very wealthy families but the majority of the population may be living at subsistence level
• Subsistence agriculture and ‘barter economies’ are not included in wealth indicators
• Some regions/areas of a country may be much better off than others — north-south’ or ‘urban-rural’ contrasts
• High GNI figures do not show where the money is being spent. it may not be going to improve health and education
• Exchange rates fluctuate making comparison unreliable
• Certain indicators are perhaps irrelevant to the real quality of life in many poorer developing countries
• HDI is a combination of health, wealth and education indicators as a combination it is a more balanced view of development.
• Using HDI is better as it prevents extremes within the country from giving a false indication of development some oil rich countries are rich but not developed