4.8.4—Evaluating development measures

Evaluate development measures by validity, comparability and consequences.

A useful measure should fit the concept, use credible data, allow fair comparisons and avoid incentives that distort behaviour; no measure is neutral.

Example

A national average may be comparable across years but hide regional inequality, while a survey may reveal experience but be harder to compare across cultures.

Judge strengths and limitations in the context of the decision, not by listing generic pros and cons.

Correlation with a desirable outcome does not establish that the indicator measures its cause.

Economic growth is an increase in real output, while economic development is a broader improvement in living standards, capabilities and economic, social and environmental outcomes. Growth can finance health, education, infrastructure and poverty reduction, so the two may be positively related; but gains can be unequal, environmentally damaging or spent without improving services. Conversely, investment in health, education and institutions may advance development and later support growth. Evaluate direction, distribution, sustainability and causation rather than treating correlation as identity.