Economic Development (Research report)

In respect of selection of indicators an other study has been conducted by 1rma Adel Man A and Cynthia Morris who classified 74 UDC on the bases  of following 40 variables:

          (1) Size of the traditional agri. sector, (2) Extent of dualism, (3) Extent of

. Urbanization, (4) Character of basic social Organization, (5) Importance of indigenous middle cIi5S, (6) Extent of social mobility, (7) Extent of literacy, (8) Extent of mass .communication, (9) Degree of cultural' and ethnic homogeneity, (10) Degree of social

. tension, (11) Crude fertility rate, (12) Degree of modernization of outlook, (13) Degree of national integration and sense of national unity, (14) Extent of centralization of political power, (15) Strength of democratic 'institutions, (16) Degree of freedom of political opposition and press, (17) Degree of competitiveness of political pomes, (18) Pre-dominant basis of the political party system, (19) strength of labor movement, (20) Political strength of the traditional elite, (21) Political strength of the military, (22) Degree of administrative strength, (23) Extent of leadership commitment to economic development, (24) Extent of political stability, (25) Per capita GNP in 1961(26) Rate of growth of real Per capita  GNP between 1950-1951 and  963-64, (27) Abundance of natural resources; (28) Gross investment rate, (29) Level of modernization of industry. (30) Change in degree of industrialization  since 1950, {31) Character of agricultural' organization,(32}level  of modernization of. Techniques  in 'agriculture, (33) Degree of improvement in agri. productivity since 1950, (34) Level of adequacy of  physical over head’ capital, (35) Degree of improvement in physical over heap capital since 1951(36) Level of effectiveness of the tax system, (37) Degree of improvement in tax system nice 1950, (38) Level of effectiveness of financial institution,(39) Degree of il11provemeIt in human resources, (40) Structure of foreign trade.

  All above mentioned social and' economic factors have been linked with the level of ecologic development. The researchers felled numerous correlation’s between

 CRITICISM OF THE APPROACH

(i)                 The preparation of composite index on the basis of social indicators is objected on the ground that it suggests that economic development should be measured in terms of “Structural Change” rather in terms of “ Human Welfare”.

(ii)               This approach also requires that the developing countries must also develop along the lines of the developed countries, as this measure stresses upon the use of indicators like animal protein consumption per capita or energy consumption per capita.

(iii)             In this approach the greater stress has been laid upon the “Inputs” like the number of doctors or hospital beds per 1000 population or enrollment ratios in schools to measure health and education. but economic development is actually concerned with the “ Outputs” ___as the case of life expectancy and literacy.

Thus because of such criticism there are certain economists who support in devising such a ‘measure’ which could measure economic development in terms of meeting the ‘Basic Needs of the majority of the people or in terms of “Physical Quality of Life.”