4.8 Measuring development

• Economic development is multidimensional and cannot be captured by income alone

• Development includes living standards, health, education, inequality, energy use, and environmental outcomes

• Single indicators include GDP or GNI per capita at PPP

• Other indicators include health, education, inequality, energy, and environmental indicators

• Composite indicators include Human Development Index (HDI), Gender Inequality Index (GII), Inequality adjusted Human Development Index (IHDI), and Happy Planet Index

• Composite measures combine multiple dimensions of development

• Measurement approaches have strengths and limitations

• Economic growth and economic development may be related but are not identical