Indicators and Measurements of Development

• GNP – the total value of goods and services produced by a country each year, including earnings from citizens or businesses located overseas (GNI (Gross National Income) has largely replaced the term GNP)
• GDP is a measurement of a country’s total national income, or the value of its goods in production and the services provided by it for a year, no matter the ownership.
• Per capita is used to provide average measurements of development across a total population. (Per capita – this literally means ‘for each person’)
• GINI coefficient – a measure of wealth inequality between socioeconomic groups in a country it compares the ideal situation, in which everyone in a country would have equal income, to who actually receives the income.
• HDI – the Human Development Index combines GNI per capita, life expectancy and the adult literacy rate into a score from 0 to 1 that indicates a country’s social and economic development.
• Productivity – a measure of the efficiency of production or the rate of output.This rate can be increased by the use of advanced or appropriate technology
• Good governance – when public resources and problems are managed effectively, efficiently and in response to the critical needs of society.