Wednesday, June 30, 2010

What is development and how can it best be measured?

Development is a general term that can be used in various contexts, implying many different types, from biological development of plants, animals, ecosystems to spiritual development, personal development… In the context of this paper, I define development as a continuously changing and mobilizing progress of a human society throughout time, towards a holistic perfection. Ultimately, development aims to improve human conditions and quality of life. Then, development refers to a multi-discipline approach of growing, more in term of quality than quantity. A comprehensive vision for development should encompass three main aspects: economic development, social progress and ecological sustainability. These three objectives are intertwined and can have effects on one another, often appear as conflicting but fundamentally complementing each other. Therefore, the best measurement for development should be the one that considers and integrates all different interrelated dimensions of life.

In terms of economic dimension which deals mostly with physical needs, production and consumption, development can be measured by the ability of an economic system to provide people with what they need to achieve well-being: food, leisure, energy, transport infrastructures… Instead of the GDP which is nowadays more and more recognized as a flawed indicator of economic progress, the GPI (Genuine Progress Indicator)[1] has been proposed by a policy research group in US. According to them, the GPI starts with the same consumption data that the GDP is based on, but then it adjusts for factors such as income distribution, adds factors such as the value of household and volunteer work, and subtracts factors such as the costs of crime and pollution. Thus, the GPI, which considers both economical and social effects of economic development, gives us a more realistic alternative to the GDP.

In terms of social progress which referred to a human and inclusive development, development measurement should take into account social equity, social inclusion, demography, education, health, public participation, security, cultural identity, transparency and good governance…  United Nation has introduced the Human Development Index (HDI) which comprises three variables: life expectancy, education and income per capita[2]. Though the HDI does not integrate all aspects of social progress mentioned above, it can be used as a good basis for further measurement.

As ecological sustainability is a fundamental condition for quality of life, development progress also implies healthy environment, rational uses of renewable natural resources and conservation of non-renewable natural resources. Thus, those factors such as ecological footprint, percentage of green coverage, availability of clean air, safe drinking water… can be used to measure environmental dimension of development.

One interesting approach to measuring development, quality of life or social progress in more holistic and psychological terms is the concept of Gross National Happiness (GNH), which was coined in 1972 by Bhutan's former King Jigme Singye Wangchuck. The GNH index[3] comprises variables in many domains of psychological wellbeing, ecology, health, education, culture, living standards, time use, community vitality and good governance. This approach shows determination of the King to pursue the way of selective and careful development in order to protect environment and the original spiritual culture. Ethical values are set at focus in the country’s economic strategy to ensure food, housing and health for its people. In their development philosophy, the priority criterion is GNH, not GDP. This revolutionary concept redefines prosperity in a more comprehensive and human vision, which measures true well-being rather than material consumption.

For a long time, development has been often associated with economic growth and was measured mainly based on GDP the incomprehensive indicator. However, facing with the complex challenges of climate change and global financial crisis, people have gradually recognized that pursuing economic growth in a finite world leads us either to crises or general collapse[4]. Thus, the pursuit of economic growth and the issues of ecological sustainability, social equity have been questioned. Criticizing the “growthmania” mindset and considers various types of limits to growth, Herman Daly (2004) defines and discusses the alternative to a growth-oriented economy, namely a steady-state economy[5]. On the other hand, the concept of economic degrowth has been worked out in recent international conferences: “Degrowth is about a voluntary reduction of the size of the economic system to a sustainable and lower level and mode of production and consumption, shifting values from ‘more is better’ towards qualitative relations and behaviour, as well as decommodifying and pushing back the market rationality that dominates most societies around the world”[6].

Reflecting on theories of development, Pablo Davalos (2009) mentioned the alternative concept of good living (sumak kawsay)[7] which originated from indigenous peoples, and is beginning to be used in Ecuador and Bolivia as a new framework of political, legal and natural governance. Regarding to constitutional changes in both countries, sumak kawsay (good living), as a new term of reference to development and economic growth, is one of the most important and novel alternative proposals to neoliberal globalization. “Good living incorporates a human, ethical and holistic dimension the relationships of human beings, not only to their own history but with their natural surroundings” (Pablo Davalos, 2009).

In conclusion, for me, development means a continuous process towards comprehensive improvements in quality of life, human conditions and social progress. Since it is a broad term that encompasses multi-dimensional aspects of life, development requires a holistic approach for evaluation. Therefore, the best measurement should be the one that gives us a more genuine and profound view on development than merely economic growth and it should integrate all economic, social and ecological indicators into its consideration.

June 2010 – Final essay for the course “Globalization and Urban Strategies” at UDP class. 


[1] Genuine Progress Indicator: www.rprogress.org/sustainability_indicators/genuine_progress_indicator.htm

[2] Human Development Index: en.wikipedia.org/wiki/Human_Development_Index and www.sln.org.uk/geography/schools/blythebridge/GCSEDevelopmentC&M.htm

[3] Gross National Happiness: www.grossnationalhappiness.com

[4] Economic Degrowth for Sustainability and Equity: www.degrowth.net/Economic-Degrowth-for

[5] Herman Daly, 2004: Steady-state economics versus growthmania: A critique of the orthodox conceptions of growth, wants, scarcity, and efficiency. www.springerlink.com/content/t747q500631k6820/

[6] Cities and Degrowth: www.thepolisblog.org/2010/03/cities-and-degrowth.html

[7] Pablo Davalos, 2009. Reflections on Sumak Kawsay (good living) and theories of development: alainet.org/active/33609&lang=es

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