Measuring Development Revision Notes | GCSE OCR Economics

1. What Is Development?

When we talk about how 'developed' a country is, we are not just asking 'how rich is it?'. Development is a much broader concept. It includes whether people can access good healthcare, whether children go to school, whether people live long and healthy lives, and whether they have access to technology. A country might have a high GDP but still have millions of people living in poverty with poor access to clean water or education.

For your GCSE Economics exam, you need to understand how development is measured, why no single indicator is perfect, and how globalisation affects development. Let's start by looking at the key indicators economists use.

2. GDP per Capita as a Measure of Development

GDP per capita is the most widely used economic measure of development. Countries with high GDP per capita — such as the UK ($48,900), the USA ($80,000) and Germany ($52,800) — tend to have higher living standards, better infrastructure and more opportunities for their citizens. Countries with low GDP per capita — such as Nigeria ($2,200) and Bangladesh ($2,700) — tend to have lower living standards.

However, GDP per capita has significant limitations as a measure of development:

3. Other Indicators of Development

Because GDP per capita has so many limitations, economists use a range of other indicators to build a fuller picture of development. You need to know about life expectancy, access to healthcare, access to technology and access to education.

Access to healthcare measures how easily people can obtain medical treatment. This can include the number of doctors per 1,000 people, the percentage of the population with access to essential medicines, or infant mortality rates (how many babies die before their first birthday per 1,000 live births). In the UK, the NHS provides free healthcare at the point of use, while in many less developed countries, people must pay for treatment or travel long distances to reach a hospital.

Access to technology is increasingly used as a development indicator. This includes internet access, mobile phone ownership and access to computers. Technology enables economic activity, education and communication. In 2024, around 97% of people in the UK used the internet, compared to approximately 36% in Nigeria. The 'digital divide' between developed and developing countries can widen existing inequalities.

Access to education is measured through indicators such as the literacy rate (the percentage of adults who can read and write) and school enrolment rates (the percentage of children of school age who attend school). Education is essential for development because it improves productivity, health outcomes and future earnings. In the UK, the literacy rate is 99%, while in some less developed countries it can be below 50%.

4. Comparing Development: Country Data

The table below compares development indicators for four countries at different stages of development. This type of data comparison is a common exam question, so practise reading and interpreting it carefully.

Several important patterns emerge from this data:

1. The UK leads on almost every indicator. With a GDP per capita of $48,900, life expectancy of 81 years, 99% literacy and 3.0 doctors per 1,000 people, the UK is a highly developed economy with strong social infrastructure.

2. Brazil is a middle-income country. It has a GDP per capita of $10,400 — much lower than the UK but significantly higher than Bangladesh or Nigeria. However, Brazil's development is uneven: it has a 94% literacy rate but significant inequality, with the richest 10% controlling over half the national income.

3. Bangladesh has made remarkable progress. Despite a low GDP per capita ($2,700), Bangladesh's life expectancy (73 years) is much higher than Nigeria's (53 years). This shows that GDP per capita alone does not determine development — Bangladesh has invested heavily in healthcare and education.

4. Nigeria faces the greatest challenges. With the lowest life expectancy (53 years), lowest literacy rate (62%) and highest infant mortality (55.2 per 1,000), Nigeria's development indicators are significantly below the other three countries, despite being Africa's largest economy by GDP.

Worked example: Comparing Development Between Two Countries

Using the data in the table, compare the level of development in Bangladesh and Nigeria. [4 marks]

Method: Compare multiple indicators using data from the table, then draw a conclusion

1. GDP per capita in Bangladesh ($2,700) is slightly higher than Nigeria ($2,200), suggesting marginally higher average economic output per person. — Start with the economic indicator and use the data.
2. However, the gap in non-economic indicators is much larger. Life expectancy in Bangladesh is 73 years compared to just 53 in Nigeria — a difference of 20 years — suggesting much better healthcare and living conditions. — Compare a non-economic indicator with data to show that GDP does not tell the whole story.
3. Bangladesh also has a higher literacy rate (75% vs 62%) and much lower infant mortality (22.1 vs 55.2 per 1,000 births), indicating better access to education and healthcare. — Use multiple indicators to build a stronger argument.
4. Overall, Bangladesh appears to be more developed than Nigeria across most indicators, despite having only slightly higher GDP per capita. This demonstrates that development is about more than just income. — Draw an evaluative conclusion linking back to the idea that multiple indicators matter.

Answer: Bangladesh is more developed than Nigeria across most indicators. While GDP per capita is similar ($2,700 vs $2,200), Bangladesh has significantly higher life expectancy (73 vs 53 years), higher literacy (75% vs 62%) and lower infant mortality (22.1 vs 55.2 per 1,000). This shows that development depends on healthcare and education investment, not just economic output.

5. Why Multiple Indicators Matter

The Bangladesh vs Nigeria comparison above perfectly illustrates why economists use multiple indicators to measure development. If we relied only on GDP per capita, the two countries would appear very similar ($2,700 vs $2,200). But when we look at life expectancy, literacy, infant mortality and access to healthcare, Bangladesh is clearly more developed.

Using multiple indicators gives a better picture because:

1. Different indicators capture different aspects of people's lives — health, education, economic opportunity and access to technology.

2. No single indicator is free from limitations. GDP per capita ignores inequality; life expectancy does not capture education levels; literacy rates do not show income.

3. Some countries invest heavily in certain areas even with low GDP. Bangladesh invested in female education and microcredit programmes, dramatically improving health outcomes despite low income levels.

4. Composite indices like the Human Development Index (HDI) combine GDP per capita, life expectancy and education into a single score, but even these have limitations.

6. Globalisation and Development

Globalisation can both help and hinder development in less developed countries. You need to understand both sides of this debate.

Real-world example — Bangladesh's garment industry: Globalisation has transformed Bangladesh's economy. The ready-made garment (RMG) industry now accounts for over 80% of the country's exports and employs around 4 million workers, mostly women. This has raised incomes, reduced poverty and improved female empowerment. However, concerns remain about low wages (the minimum wage in the garment sector is around $113 per month), poor working conditions and the 2013 Rana Plaza factory collapse, which killed over 1,100 workers. This example shows that globalisation brings both opportunities and risks for developing countries.

Worked example: Evaluating Globalisation's Impact on Development

Evaluate whether globalisation has been beneficial for the development of less developed countries. Use examples in your answer. [6 marks]

Method: Present arguments for and against, use examples, then make an evaluative judgement

1. Globalisation has helped development through increased trade and investment. Bangladesh's garment industry employs 4 million workers and accounts for over 80% of exports, helping to reduce poverty and boost GDP. — Start with a clear argument for globalisation, supported by a specific example with data.
2. FDI from multinational companies brings jobs, capital and technology. In Nigeria, investment from international oil companies has boosted GDP, making it Africa's largest economy. — Add a second supporting argument with a different country example.
3. However, globalisation can hinder development. MNCs may pay very low wages — Bangladesh's garment workers earn around $113 per month — and poor working conditions led to the Rana Plaza disaster in 2013. — Present the counter-argument, reusing the same example to show complexity.
4. In Nigeria, despite high GDP from oil exports, 40% of the population lives in poverty. Oil revenues have not been evenly distributed, and dependency on a single export makes the economy vulnerable to oil price drops. — Show that GDP growth from globalisation does not automatically improve development for everyone.
5. Overall, globalisation has the potential to significantly boost development, but its benefits depend on government policies, regulation and whether gains are shared fairly. Countries that invest in education and worker protections tend to benefit more from globalisation than those that do not. — Make an evaluative judgement that goes beyond simply listing pros and cons.

Answer: Globalisation has both helped and hindered development. It has created jobs and raised incomes — Bangladesh's garment industry employs 4 million workers and Nigeria's oil sector has boosted GDP. However, low wages, poor conditions and uneven distribution of gains mean many people remain in poverty. Overall, globalisation can boost development, but only when accompanied by good governance, investment in education and protection of workers' rights.

7. Exam Success: Key Points to Remember

Top tips for development questions:

1. Always explain that development is broader than economic growth. Growth means higher GDP; development means improved living standards including health, education and quality of life.

2. When comparing countries, use at least three different indicators and always include specific data figures from any table provided.

3. Remember that GDP per capita is an average — it hides inequality. Always mention this limitation when evaluating GDP per capita.

4. For globalisation questions, present both sides (helps AND hinders) and use named country examples.

5. Bangladesh is an excellent example to use: low GDP per capita but relatively high life expectancy shows that development is about more than just income.