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Advantages Of GDP As A Measure Of Development

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POL10120: GLOBALISATION AND DEVELOPMENT
Essay No.1: For a measure of development of your choice, assess its strengths and weaknesses.

Development is the process of sustained economic growth. The developmental state defined “States whose politics have narrowed down the necessary power, autonomy and capacity at the centre to shape, pursue and encourage the purpose of specific developmental objectives, whether by establishing and promoting the conditions and direction of economic growth, or by organising it directly, or a varying combination of both” (Leftwich). In this essay I will discuss GDP or Gross Domestic Product as a measure of Economic and Human Development. First developed in 1934 by Simon Kuznets for a US Congress report, GDP measures the value of economic activity in a country. It is the sum of (total) market values or prices of all final goods and services produced in an economy during a given period of time. GDP continued to be developed through the years and was used widely …show more content…

• GDP is thought to be the broadest indicator of economic output and growth and offers a better evaluation or measure of economy activity through its changes and growth rate in an economy than any other current measure. Summarizing a vast amount of economic information and establishes the comparative strengths and weaknesses of various sectors within an economy.
• Real GDP also takes inflation into account which allows for comparisons against other historical time periods.
• GDP is extremely helpful information to economist studies in comparing countries because it is regularly used in different parts of the world.
• GDP of course also allows analysts and policy makers to alter, regulate and implement economic policy as they see fit.
• GDP clearly highlights raising or falling wealth within a country.
• GDP acts as a simple representation for economic and social

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