How do comprehensive indices differ from GDP in measuring development?

Comprehensive indices differ from GDP in measuring development as they consider a wider range of factors beyond economic output.

Gross Domestic Product (GDP) is a traditional measure of a country's economic performance. It calculates the total value of all goods and services produced within a country in a given period. However, GDP has been criticised for its narrow focus on economic output, which does not necessarily reflect the overall well-being of a country's citizens. For instance, a country might have a high GDP, but if income inequality is also high, the average citizen may not be experiencing the benefits of this wealth.

Comprehensive indices, on the other hand, aim to provide a more holistic view of a country's development. They incorporate a variety of factors, including social, environmental, and political indicators, to give a more rounded picture of a country's progress. For example, the Human Development Index (HDI) developed by the United Nations considers factors such as life expectancy, education levels, and income per capita. This allows for a more nuanced understanding of development, recognising that economic growth does not automatically translate into improved living standards for all citizens.

Another example of a comprehensive index is the Sustainable Development Goals (SDGs) Index. This measures a country's progress towards the 17 SDGs set by the United Nations, which include goals related to poverty, education, gender equality, and environmental sustainability. By considering a wide range of factors, the SDGs Index provides a more comprehensive view of a country's development than GDP alone.

In addition, comprehensive indices often consider the sustainability of a country's development. For instance, the Environmental Performance Index (EPI) measures a country's environmental health and ecosystem vitality. This recognises that economic growth can often come at the expense of the environment, and that sustainable development requires balancing economic, social, and environmental considerations.

In conclusion, while GDP provides a useful measure of a country's economic output, comprehensive indices offer a more nuanced and holistic view of development. They recognise that development is a multifaceted process, involving not just economic growth, but also social progress, environmental sustainability, and political stability.