Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold in a specific time period by a country or countries. GDP is most often used by the government of a single country to measure its economic health. Due to its complex and subjective nature, this measure is often revised before being considered a reliable indicator. GDP (nominal) per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries; therefore, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful when comparing living standards between nations, while nominal GDP is more useful comparing national economies on the international market. Total GDP can also be broken down into the contribution of each industry or sector of the economy. The ratio of GDP to the total population of the region is the per capita GDP.
In economics, the Gini coefficient, also known as the Gini index or Gini ratio, is a measure of statistical dispersion intended to represent the income inequality or the wealth inequality or the consumption inequality within a nation or a social group. It was developed by statistician and sociologist Corrado Gini.
Quality of life (QOL) is defined by the World Health Organization as "an individual's perception of their position in life in the context of the culture and value systems in which they live and in relation to their goals, expectations, standards and concerns". Standard indicators of the quality of life include wealth, employment, the environment, physical and mental health, education, recreation and leisure time, social belonging, religious beliefs, safety, security and freedom. QOL has a wide range of contexts, including the fields of international development, healthcare, politics and employment. Health related QOL (HRQOL) is an evaluation of QOL and its relationship with health.
Amartya Kumar Sen is an Indian economist and philosopher, who since 1972 has taught and worked in the United Kingdom and the United States. Sen has made contributions to welfare economics, social choice theory, economic and social justice, economic theories of famines, decision theory, development economics, public health, and measures of well-being of countries.
The Human Development Index (HDI) is a statistic composite index of life expectancy, education, and per capita income indicators, which is used to rank countries into four tiers of human development. A country scores a higher level of HDI when the lifespan is higher, the education level is higher, and the gross national income GNI (PPP) per capita is higher. It was developed by Pakistani economist Mahbub ul Haq and was further used to measure a country's development by the United Nations Development Programme (UNDP)'s Human Development Report Office.
There are wide varieties of economic inequality, most notably income inequality measured using the distribution of income and wealth inequality measured using the distribution of wealth. Besides economic inequality between countries or states, there are important types of economic inequality between different groups of people.
Income inequality metrics or income distribution metrics are used by social scientists to measure the distribution of income and economic inequality among the participants in a particular economy, such as that of a specific country or of the world in general. While different theories may try to explain how income inequality comes about, income inequality metrics simply provide a system of measurement used to determine the dispersion of incomes. The concept of inequality is distinct from poverty and fairness.
The capability approach is a normative approach to human welfare that concentrates on the actual capability of persons to achieve lives they value rather than solely having a right or freedom to do so. It was conceived in the 1980s as an alternative approach to welfare economics. In this approach, Amartya Sen and Martha Nussbaum combine a range of ideas that were previously excluded from traditional approaches to welfare economics. The core focus of the capability approach is improving access to the tools people use to live a fulfilling life.
The Human Development Report (HDR) is an annual Human Development Index report published by the Human Development Report Office of the United Nations Development Programme (UNDP).
The Gender Development Index (GDI) is an index designed to measure gender equality.
Human development involves studies of the human condition with its core being the capability approach. The inequality adjusted Human Development Index is used as a way of measuring actual progress in human development by the United Nations. It is an alternative approach to a single focus on economic growth, and focused more on social justice, as a way of understanding progress
The term "missing women" indicates a shortfall in the number of women relative to the expected number of women in a region or country. It is most often measured through male-to-female sex ratios, and is theorized to be caused by sex-selective abortions, female infanticide, and inadequate healthcare and nutrition for female children. It is argued that technologies that enable prenatal sex selection, which have been commercially available since the 1970s, are a large impetus for missing female children.
Multidimensional Poverty Indices use a range of indicators to calculate a summary poverty figure for a given population, in which a larger figure indicates a higher level of poverty. This figure considers both the proportion of the population that is deemed poor, and the 'breadth' of poverty experienced by these 'poor' households, following the Alkire & Foster 'counting method'. The method was developed following increased criticism of monetary and consumption based poverty measures, seeking to capture the deprivations in non-monetary factors that contribute towards well-being. While there is a standard set of indicators, dimensions, cutoffs and thresholds used for a 'Global MPI', the method is flexible and there are many examples of poverty studies that modify it to best suit their environment. The methodology has been mainly, but not exclusively, applied to developing countries.
The poverty gap index is a measure of the intensity of poverty. It is defined as the average poverty gap in the population as a proportion of the poverty line.
Sabina Alkire is the director of the Oxford Poverty and Human Development Initiative (OPHI), an economic research centre within the Oxford Department of International Development at the University of Oxford, England, which was established in 2007. She is a fellow of the Human Development and Capability Association. She has worked with organizations such as the Commission on the Measurement of Economic Performance and Social Progress, the United Nations Human Development Programme Human Development Report Office, the European Commission, and the UK's Department for International Development.
Sanjiv M. Ravi Kanbur, is T.H. Lee Professor of World Affairs, International Professor of Applied Economics, and Professor of Economics at Cornell University. He worked for the World Bank for almost two decades and was the director of the World Development Report.
Creating Capabilities is a book, first published by economist Martha Nussbaum in 2011, which outlines a unique theory regarding the Capability approach or the Human development approach. Nussbaum draws on theories of other notable advocates of the Capability approach like Amartya Sen, but makes specific distinctions. One distinct idea she proposes is to choose a list of capabilities based on some aspects of John Rawls' concept of "central human capabilities." These ten capabilities encompass everything Nussbaum considers essential to living a life that one values. Martha Nussbaum and Amartya Sen are considered to be the main scholars of this approach, but have distinctions in their approach to capabilities. Sen disagrees with Nussbaum's list of values on the grounds that it does not fully encompass the range of capabilities one would consider to live a fulfilling life, which inherently differs by person.
