Why are non-economic indicators essential for understanding development?

Non-economic indicators are essential for understanding development as they provide a holistic view of a country's progress beyond just economic growth.

Economic indicators such as GDP or GNI per capita are often used to measure a country's development. However, these indicators only provide a snapshot of the economic aspect of development and do not necessarily reflect the overall well-being of a country's population. This is where non-economic indicators come into play. They help to provide a more comprehensive understanding of development by considering factors such as health, education, and quality of life.

Health indicators, for instance, such as life expectancy and infant mortality rates, can provide insights into the general health conditions in a country. A high life expectancy and low infant mortality rate often indicate good healthcare services and living conditions, which are crucial aspects of development. Similarly, education indicators like literacy rates and school enrolment ratios can shed light on the level of education in a country, which is a key determinant of human capital and hence, economic development.

Moreover, non-economic indicators such as the Human Development Index (HDI) and the Gender Development Index (GDI) provide a broader perspective on development. The HDI, for example, combines income, education, and life expectancy into a single index, providing a more rounded measure of a country's development. The GDI, on the other hand, measures gender inequality in these areas, highlighting the importance of social equality in development.

Furthermore, indicators like the Environmental Performance Index (EPI) and the World Happiness Report consider environmental sustainability and subjective well-being, respectively. These indicators recognise that development is not just about economic growth, but also about sustainable use of resources and the happiness and well-being of the population.

In conclusion, non-economic indicators are essential for understanding development as they provide a more comprehensive and nuanced view of a country's progress. They highlight that development is a multi-dimensional concept that goes beyond mere economic growth, encompassing aspects such as health, education, equality, sustainability, and well-being.