why is it important to have varoius socio economic indicators, other than income to measure the rate of growth and development?
Dear Student,
a. National income, average income may serve as important tool to asses country's growth and development .
b..Rather they serve as an important measure comparing different nations and classifying them as rich countries or low income countries.
c World bank has specified the criterion for categorising countries into developed, developing and underdeveloped countries
It is based on the assumption that high national income accounts for high standard of living of the population,
d. This criteria however only takes into account the quantitative aspect and does not talk of how the income is distributed among the different sections of the society , hence other socio economic indicators are taken into account like Literacy rate, infant mortality rate.
e Income as a measuring tool does not really specify as to how the income is distributed among them.
f. It also does not indicate the disparities among the people of the country
g. Thus, we may include even qualitative indicators like high literacy rate, less infant mortality rate and average life expectancy, to give a more wholistic picture about country's development status.
Regards
a. National income, average income may serve as important tool to asses country's growth and development .
b..Rather they serve as an important measure comparing different nations and classifying them as rich countries or low income countries.
c World bank has specified the criterion for categorising countries into developed, developing and underdeveloped countries
It is based on the assumption that high national income accounts for high standard of living of the population,
d. This criteria however only takes into account the quantitative aspect and does not talk of how the income is distributed among the different sections of the society , hence other socio economic indicators are taken into account like Literacy rate, infant mortality rate.
e Income as a measuring tool does not really specify as to how the income is distributed among them.
f. It also does not indicate the disparities among the people of the country
g. Thus, we may include even qualitative indicators like high literacy rate, less infant mortality rate and average life expectancy, to give a more wholistic picture about country's development status.
Regards