Tools to Measure Development: GNP, GDP, and Per Capita Income
Tools to Measure Development/
Development as Freedom
Second Semester, BJMC, DSPMU
Date: 20/4/2020
Paper: Development Communication
Teacher’s Name: Sumedha Chaudhury
Tools to Measure Development
•
Gross National Product (GNP):
It is the value of all
goods and services produced in a country in a given
period of time. The problem with this was a growth in
GNP does not mean a growth in the standard of living.
Another determiner was the per capita income. Per
capita income is the amount obtainable by dividing the
national income by the number of population. Per
capita income also did not assure a rise in the living
standards of the poor.
It is to be understood that GNP and per capita income
are seen as tools to measure development not the goal
of development.
•
GDP and Per Capita Income:
GDP is the primary in
total value of all goods and services produced over a
specific time period. Usually GDP is compared to that
of the previous year. Measuring GDP is complicated,
but, at its basic, the calculation can be done in one of
the two ways: either you add up what everybody
earned at a lower cost.
A significant change in GDP, whether up or down, usually
has a significant effect on the stock market. It’s not hard
to understand why: a bad economy usually means lower
profits for companies which in turn means lower stock
prices. Investors really worry about GDP growth, which is
one of the factors economists use to determine if an
economy is in a reason.
Per capita income is the total national income divided by
the number of people in the nation. Traditionally
development was measured by such early quantifiable
indices as the area and per capita income.
Development as Freedom
•
There is some thing more important than
income, wealth. It is some thing beyond the
material world. The point is for eternity of
soul.
The living of life has concern with income and
achievement, commodities and capability and
economic wealth and our ability to live the
life. We wish to have a good and real life.
Development lies in between economic wealth and
life which we can lead.
Quotation of Aristotle is important here, “Wealth is
evidently not the goods we are seeking for, it is
merely useful and for the sake of something else.”
Development is not to increase income or wealth as
GNP but freedom and beyond this
.
•
Forms of Unfreedom
:
We start with negative
approach of freedom. There are many types of unfreedom. Unfreedom
for survival is due to famine. Unfreedom are in terms of medical
facilities, morbidity, sanitation, clean water and pre-mature mortality.
Richer countries are no exception for unfreedom like gainful
employment or education or social security and longevity alongwith
restrictions on woman. People do not get political freedom and civil
rights. Freedom should allow to have action and decision on one hand
and to have opportunities in personal and social circumstances.
•
Roles of Freedom
:
i) The Evaluative reasons
: In this, we will
measure enhancement of freedom of the
people
ii) The Effective reasons
: The free public
agency is how far a cause in development is to
be examined.
The combination of both should result into the
best as development and freedom. Freedom
achieved by people through the economic
opportunities , political liberties, social power
and good health, education, encouraging and
cultivating institutions. This is influence
institutional arrangement by way of public
freedom. Public freedom is in much bigger
sense. Example:
Rights under Constitution of
India.
•
Types of Freedom:
i) Economic Analysis
ii) Public Debate
•
Freedom and Foundation of Justice:
There are number of reasons for one decision.
The information part is very important in
development. You can say that there is:
(i)Classical utilitarian approach
(ii)Libertarianism
(iii)Rawlsian justice in individual freedom.
Development is not just about economic wealth but also about the freedom and quality of life. This article explores the significance of tools such as Gross National Product (GNP), Gross Domestic Product (GDP), and Per Capita Income in measuring development beyond mere economic indicators. It delves into how these metrics have limitations in truly capturing the essence of development and emphasizes the value of freedom, well-being, and human capabilities in achieving true progress.
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Presentation Transcript
Tools to Measure Development/ Development as Freedom Second Semester, BJMC, DSPMU Date: 20/4/2020 Paper: Development Communication Teacher s Name: Sumedha Chaudhury
Tools to Measure Development Gross National Product (GNP): It is the value of all goods and services produced in a country in a given period of time. The problem with this was a growth in GNP does not mean a growth in the standard of living. Another determiner was the per capita income. Per capita income is the amount obtainable by dividing the national income by the number of population. Per capita income also did not assure a rise in the living standards of the poor. It is to be understood that GNP and per capita income are seen as tools to measure development not the goal of development.
GDP and Per Capita Income: GDP is the primary in total value of all goods and services produced over a specific time period. Usually GDP is compared to that of the previous year. Measuring GDP is complicated, but, at its basic, the calculation can be done in one of the two ways: either you add up what everybody earned at a lower cost.
A significant change in GDP, whether up or down, usually has a significant effect on the stock market. It s not hard to understand why: a bad economy usually means lower profits for companies which in turn means lower stock prices. Investors really worry about GDP growth, which is one of the factors economists use to determine if an economy is in a reason. Per capita income is the total national income divided by the number of people in the nation. Traditionally development was measured by such early quantifiable indices as the area and per capita income.
Development as Freedom There is some thing more important than income, wealth. It is some thing beyond the material world. The point is for eternity of soul. The living of life has concern with income and achievement, commodities and capability and economic wealth and our ability to live the life. We wish to have a good and real life.
Development lies in between economic wealth and life which we can lead. Quotation of Aristotle is important here, Wealth is evidently not the goods we are seeking for, it is merely useful and for the sake of something else. Development is not to increase income or wealth as GNP but freedom and beyond this.
Forms of Unfreedom: We start with negative approach of freedom. There are many types of unfreedom. Unfreedom for survival is due to famine. Unfreedom are in terms of medical facilities, morbidity, sanitation, clean water and pre-mature mortality. Richer countries are no exception for unfreedom like gainful employment or education or social security and longevity alongwith restrictions on woman. People do not get political freedom and civil rights. Freedom should allow to have action and decision on one hand andtohaveopportunitiesinpersonalandsocialcircumstances.
Roles of Freedom: i) The Evaluative reasons: In this, we will measure enhancement of freedom of the people ii) The Effective reasons: The free public agency is how far a cause in development is to be examined.
The combination of both should result into the best as development and freedom. Freedom achieved by people through the economic opportunities , political liberties, social power and good health, education, encouraging and cultivating institutions. institutional arrangement by way of public freedom. Public freedom is in much bigger sense. Example: Rights under Constitution of India. This is influence
Types of Freedom: i) Economic Analysis ii) Public Debate Freedom and Foundation of Justice: There are number of reasons for one decision. The information part is very important in development. You can say that there is: (i)Classical utilitarian approach (ii)Libertarianism (iii)Rawlsian justice in individual freedom.
