Definition
Indicator
Indicator is a metric to measure the level of a concept.
- Single Indicators, includes measures such as:
- GDP/GNI per capita at PPP
- Health Indicators
- Education Indicators
- Energy Indicators
- Environmental Indicators
GDP/GNI per capita at PPP
- While in a lesser developed country a person might earn a wage less than a person in a more developed country, this might not fully represent their standard of living, because:
- Different countries have different prices.
- Lesser developed countries typically have lower prices.
- More developed countries typically have higher prices.
- As a result, we need to consider purchasing power parity (PPP), as the person with the high wage living in a developed country might not have as much purchasing power as the person with a lower wage living in a less developed country.
- GDP/GNI per capita at PPP adjusts a country's income per person to account for differences in living costs across countries, offering a more accurate comparison of economic well-being.
- Therefore, this shows the purchasing power of each country, giving an idea about the country's standard of living.
However, this measure does not account for income inequality, non-monetary aspects of well-being, or environmental factors.
Health Indicators
- There are three main health indicators used to measure development:
- Life expectancy at birth: average number of years people live.
- Infant mortality rate: the number of deaths of infants under one year of age per 1,000 live births in a given year.
- Maternal mortality: refers to the death of a woman during pregnancy per 100,000 live births in a given year
- Higher GNI per capita (PPP) is often suggests to better health outcomes
However, some low-income countries outperform some high income countries due to strong public health policies, education, and sanitation.
