Economic Indicator-

Gross Domestic Product (GDP)

 The gross domestic product (GDP) is one the primary indicators used to measure
the health of a country's economy.

 It represents the total value of all goods and services produced over a specific time
period

 Measuring GDP is complicated The income approach, which is sometimes

referred to as GDP(I), is calculated by adding up total compensation to employees,
gross profits for incorporated and non incorporated firms, and taxes less any
subsidies.

The calculation can be done in one of two ways:

 Either by adding up what everyone earned in a year (income approach), or by

adding up what everyone spent (expenditure method). The expenditure method is
the more common approach and is calculated by adding total consumption,
investment, government spending and net exports.

 Logically, both measures should arrive at roughly the same total.

 Economic production and growth, what GDP represents, has a large impact on
nearly everyone within that economy.

 When the economy is healthy, you will typically see low unemployment and wage
increases as businesses demand labor to meet the growing economy.

 A significant change in GDP, whether up or down, usually has a significant effect

on the stock market. It's not hard to understand why: a bad economy usually
means lower profits for companies, which in turn means lower stock prices.

GDP = private consumption + gross investment + government spending + (exports −

imports)
  Consumption: is normally the largest GDP component, consisting of private
household expenditures in the economy.

 Investment: includes business investment in plant, equipment, inventory, and

structures, and does not include exchanges of existing assets.

 Government spending: is the sum of government expenditures on final goods

and services.

 Exports: represents gross exports

 Imports: represents gross imports

 "Domestic" means that GDP measures production that takes place within the
country's borders. In the expenditure-method equation given above, the exports-
minus-imports term is necessary in order to null out expenditures on things not
produced in the country (imports) and add in things produced but not sold in the
country (exports).

In addition, there are several types of GDP measurements:

Nominal GDP: GDP evaluated at current market prices

Real GDP: Real GDP is an inflation-adjusted measure that reflects both the value and the
quantity of goods and services produced by an economy in a given year.

GDP Growth Rate: The GDP growth rate compares one quarter of a country's GDP to
the previous quarter in order to measure how fast an economy is growing.

GDP Per Capita: GDP per capita is a measurement of the GDP per person in a country's
population; it is a useful way to compare GDP data between various countries.

Gross National Product (GNP)

  to estimate total economic activity in a country or region, including gross domestic
product (GDP), gross national product (GNP)

GNP = C + I + G + X + Z
Where C is Consumption, I is investment, G is government, X is net exports, and Z
is net income earned by domestic residents from overseas investments minus net
income earned by foreign residents from domestic investments.
The income method works by summing the incomes of all producers within the
boundary. Since what they are paid is just the market value of their product, their total
income must be the total value of the product. Wages, proprietor’s incomes, and
corporate profits are the major subdivisions of income.

"Domestic" means the boundary is geographical: we are counting all goods and services
produced within the country's borders, regardless of by whom.

"National" means the boundary is defined by citizenship (nationality). We count all goods
and services produced by the nationals of the country (or businesses owned by them)
regardless of where that production physically takes place.

GDP v/s GNP

 GDP can be contrasted with gross national product (GNP). The difference is that
GDP defines its scope according to location, while GNP defines its scope
according to ownership.

 GDP is product produced within a country's borders; GNP is product produced by

enterprises owned by a country's citizens. The two would be the same if all of the
productive enterprises in a country were owned by its own citizens

 Production within a country's borders, but by an enterprise owned by somebody

outside the country, counts as part of its GDP but not its GNP; on the other hand,
 production by an enterprise located outside the country, but owned by one of its
citizens, counts as part of its GNP but not its GDP.

 To take the United States as an example, the U.S.'s GDP is the value of output
produced by American-owned firms, regardless of where the firms are located.

Social Indicator

Human Development Index (HDI)

Focuses on human capabilities such as skills, health, knowledge, equitable opportunities

1) Equity

2) Sustainability

3) Productivity

4) Empowerment

EQUITY people must have access to equal opportunities, is a basic human right. All
barriers to economic & political must be eliminated so that they can participate in and
benefit from these opportunities.
Sustainability- Access to opportunities must be ensured not only for the present
generations but also for future. All forms of capital, human & environmental should
be replenished (regeneration).
Productivity- It requires investment so that people must be enabled to increase their
productivity (max potential), participate fully in the process of income generation&
remunerative employment. Eco growth is therefore, a subset of human Development.
Empowerment- Development must be by the people, not only for the people, focusses
on education & health so that they must participate fully in the decisions & processes
that shape their lives. Involvement in identifying planning and implementation of dev
programmes.
Human Development index (HDI)-It is the latest and most comprehensive index of socio-
economic dev formulated by the (UNDP) United Nations Development Prog and is
annually published in the United Nations Human Development Reports.

The HDI attempts to rank all countries on scale of 0(lowest human dev) and 1 (highest
Human dev level)
It measures the average achievement of a country in basic human capabilities.
The HDI indicates whether people lead a long & healthy life, are educated,
knowledgeable and enjoy a decent standard of living. HDI examines the average
condition of various segments of society
People’s participation in their country’s development and their own control over their
lives is measured by HDI.
HDI combines life expectancy, educational attainment and basic purchasing power.

Various examples of states—

1) High HDI/ low income=Kerala

2) Low HDI/higher income = Haryana

3) Fast economic growth/slow HDI = Rajasthan

4) Mutually reinforcing growth & HDI = Punjab, Gujarat

5) Mutually depressing growth & HDI = UP, Bihar, Orissa

Correct estimation is difficult because of theoretical and practical difficulties.

If HDI below .5—low level

If HDI between .5and .8 –medium level

If HDI above .8—high level

 HDI

The Human Development Index (HDI) is a composite statistic of life expectancy,

education, and income are tiers of human development. Human Development
Index (HDI) to shift the focus of development economics from national income
accounting to people-centered policies. The Human Development Index (HDI)
measures the average achievements in a country in three basic dimensions of
human development: a long and healthy life, access to knowledge and a decent
standard of living. Data availability determines HDI country coverage.

India inched up one spot to rank 129th out of 189 countries on the 2019 Human
Development Index (HDI) released by the United Nations Development
Programme (UNDP)

Definition: The Human Development Index (HDI) is a statistical tool used to

measure a country's overall achievement in its social and economic dimensions.
The social and economic dimensions of a country are based on the health of
people, their level of education attainment and their standard of living. The Human
Development Index (HDI) is a composite measure of health, education and income
that was introduced in the first Human Development Report in 1990 as an
alternative to purely economic assessments of national progress, such as GDP
growth , economic growth, industrial growth standard of living

Pakistani economist Mahbub ul Haq created HDI in 1990 which was further used
to measure the country's development by the United Nations Development
Program (UNDP). Calculation of the index combines three major indicators:
life expectancy for health, expected years of schooling, mean of years of
schooling for education and Gross National Income per capita for standard of
living.

Every year UNDP ranks countries based on the HDI report released in their annual
report. HDI is one of the best tools to keep track of the level of development of a
country, as it combines all major social and economic indicators that are
responsible for economic development.

The HDI was created to emphasize that people and their capabilities should be the
ultimate criteria for assessing the development of a country, not economic growth
alone. The Human Development Index (HDI) is a summary measure of average
achievement of human development: a long and healthy life, being knowledgeable
and have a decent standard of living.

What is the human development index (HDI)?

The HDI—human development index—is a summary composite index that
measures a country's average achievements in three basic aspects of human
development: longevity ( long life ), knowledge, and a decent standard of living.
Longevity is measured by life expectancy at birth; knowledge is measured by a
combination of the adult literacy rate and the combined primary, secondary, and
tertiary gross enrolment ratio; and standard of living by GDP and Per capita
income.

The HDI has three dimensions.

1. The health dimension is assessed by life expectancy at birth component of the HDI is
calculated using a minimum value of 20 years and maximum value of 85 years.
2. The education component of the HDI is measured by mean of years of schooling for
adults aged 25 years and expected years of schooling for children of school entering age.
Mean years of schooling is estimated by UNESCO Institute for Statistics based on
educational attainment data from censuses and surveys available in its database. Expected
years of schooling estimates are based on enrolment by age at all levels of education. .
Expected years of schooling is capped at 18 years. The indicators are normalized using a
minimum value of zero and maximum values of 15 and 18 years respectively. The two
indices are combined into an education index using arithmetic mean. The HDI does not
reflect on inequalities, poverty, human security, empowerment, etc. the HDI is the key
issues of human development, inequality, gender disparity and human poverty.

3. Economic growth is a means and not an end of development. Moreover, high GDP
growth does not necessarily translate to progress in human development. Global
experience has shown that income and human development are not always perfect
companions, where some countries display relatively high levels of human development
for their income and vice versa.
Human development is often being misconstrued and confused with the following
concepts and approaches to development.

 HDI calculate the standard of living which can be different from country to country
 The human welfare approach looks at human beings as beneficiaries rather than
participants in the development process;
 The basic needs approach concentrates on the bundle of goods and services that
deprived population groups need - food, shelter, clothing, health care and water. It
focuses on the provision of these goods and services rather than their implications on
human choices.

Communication as an indicator

Characteristics of indicators
An indicator is a quantitative or qualitative factor or variable that provides a simple and
reliable basis for assessing achievement, change or performance. It is a unit of
information measured over time that can help show changes in a specific condition. A
given goal or objective can have multiple indicators

Why communication
Most current development policy rests on the belief that development works best when it
is rooted in country ownership, when people have a voice in their own development and
when they can hold both governments and others in power to account. Communication
strategies enable people to know and understand issues that affect them, and they provide
people with the means and spaces to articulate their own perspectives in public and
political debate. Without knowledge of issues that affect you, and without the capacity to
make your voice heard, there can be no participation or ownership. This is particularly
and especially the case for people living in poverty. Repeated surveys of people living in
poverty find that people consistently treasure one thing more than money – that one thing
is having a voice in their own development.
 Communication for development is a tool to promote dialogue, to share information
and knowledge, and give people voice. Its likeness to what in other situations is referred
to as participation is striking. Communication reinforces people's participation.

The communication for development intervention has its own objectives, activities and
outputs to be monitored and evaluated whether these stand on their own or they are
mainstreamed into the overall sector programme objectives, activities and outputs.
Communication for development is an essential component of any strategy designed to
guarantee that voice.
 SELECTED INDICATORS - COMMUNICATION FOR SOCIAL CHANGE
 Expanded public and private dialogue and debate
What increase has there been in family discussions, among friends, in community
gatherings, in debate and dialogue in political processes
 Increased accuracy of the information that people share in the dialogue/debate
Evidence of this may be gathered on a few topics, one example may be the accuracy of
information about the ways to spread/avoid HIV/Aids
 Increased leadership role by people disadvantaged by the issues of concern
Did the affected people manage to become decision makers concerning the priorities and
activities of the communication intervention?
 Linked people and groups with similar interests who might otherwise not be in
contact
Which new groups are involved, new contacts established? This may help people to see
opportunities for action which they did not see before – a very important indicator.
The following can serve as guideline in using communication for development.

1) As Charles Wright says that the functions of communication include correlation,

entertainment, socialization and education. All these are directly as well as indirectly
related with development in our country.
2) Apart from fulfilling these functions communication can serve to speed up the acceptance
of new ideas into a community.

3) Communication can also expand peoples horizon and thinking on many aspects
pertaining to development.

4) We know about the steps to be taken to face any disaster, calamity only through
communication.

5) Communication can provide specific direction towards achieving development by

focusing on problem areas in a developmental program me.

6) Communication can keep the people informed of the steps taken towards the national
integration and national development.

7) Communication can help people to face problems on an individual and also on collective
basis on various fronts.

8) Development oriented themes such as family planning; adult education, primary health
care etc. can be spread to people much faster through communication.

9) People feedback on developmental programmes can be passed to the policy makers only
through communication.

Communication is an indicator of development for the future since people come to know
about the event in advance, that may happen only through communication.

Happiness Index (HI)

We have certain strategies, certain policies, to pursue this goal of happiness. We should
enrich our knowledge and understanding of happiness itself; and further, how much we
can improve and refine the processes that we have adopted. Happiness is the ultimate
desired end. Greater intellect and further wisdom on the subject of happiness is the key
requirement.

HI is offering a more rational and human approach to development:

 First, HI stands for the holistic needs of the human individual - both physical and
mental well being. It reasons that while material development measures, contribute, to
enhancing physical well-being, the state of mind which is perhaps, more important
than the body, is not conditioned by material circumstances alone.

 Second, is that HI seeks to promote a conscious, inner search for happiness and
requisite skills which must harmonize with beneficial management and development
of outer circumstances.

 Third, it supports the notion that happiness pursued and realized within the context of
the greater good of society offers the best possibility for the sustained happiness of the
individual. It may be emphasized that the society as a whole cannot obtain happiness
if individuals compete irresponsibly for it. HI stresses collective happiness to be
addressed directly through public policies in which happiness becomes an explicit
criterion in development projects and programmes.

 Fourth, as happiness is the most common strong desire of the electorate both
individually and collectively and as it transcends ideological values, public policies
based on HI will be far less arbitrary than those based on standard economic tools.

Dimensions and Indicators of HI

The HI indicators have been designed to include nine core dimensions that are regarded
as components of happiness and well-being. These are constructed of indicators which
informative with respect to each of the dimensions. The nine dimensions were selected on
normative grounds, and are equally weighted, because each dimension is considered to be
relatively equal in terms of equal intrinsic importance as a component of happiness.
Within each dimension, several indicators were selected, and were relatively
uncorrelated. The nine dimensions are:

1. Psychological Well-being

2. Time Use

3. Community strength

4. Culture

5. Health

6. Education

7. Environmental Diversity

8. Living Standard

9. Governance

HI is a balanced and holistic approach to development. It is based on the conviction that

man is bound by nature to search for happiness, and that it is the single most desire of
every citizen. Evidently, there is growing interest in how to be happy as opposed to how
to make money. Dollars and cents are not the bottom line in life. It is our hope that as
more thought is given to this common quest in life, there will be more ideas and reasons
why HI should guide human development to further human civilization. It started to
converge on happiness as a collective goal. That happiness is an indicator of good
development and good society.

HI indicators include both objective and subjective dimensions of life. The construction
of an index should give equal weight to both the functional aspects of human society as
well as the emotive side of human experience. To give just one example, people’s
perceptions of their own safety and security are as important in determining happiness as
objective crime statistics. That balance allows good representation of information
between the objective and the subjective.

When measuring objective conditions such as educational and medical facilities, etc.,
measure of the psychological or subjective experience that accompanies this condition is
important. For example, a student attends a school that scores highly in the conventional
educational statistics, but he/she subjectively views the educational experience as entirely
deficient the teachers might be oppressive, or the classroom tense. In other words, the
process of obtaining the education, including the classroom experience, does not promote
a sense of well-being in the student, despite the schools apparent high objective
performance. Self reporting of experiences along with objective statistics therefore
provides a more accurate picture of well-being than the objective statistics alone.

As indicators reflect values, and shape programmes, they become a vital link in providing
feed-back on the effectiveness of existing policies and programmes and feed-forward into
programme implementation, thereby allowing the values they embody to be infused into
policies and programmes in a broad based manner. Thus, in the case of using HI
indicators as evaluative tools, they can be used not only to check whether programmes
are consistent with HI indicators but also to create conditions for a coherent, organic
relationship between professed values on the one hand and actual policies, programmes
and projects on the other. it means that the country’s economic, political, social,
environmental, cultural and technological environments will be penetrated by HI values,
and that there will be a natural coherence to the country’s policies that reflect its
cherished values.
The conventional subjective versus objective division is an abstraction from what is
actually inter-relational. For HI indicators, this cultural concept means that seeing
everything as relational is more useful than seeing them as separate categories. In fact,
happiness itself dwells in the experience of quality of relationship. Thus, the various
domains are not simply separate conditions of happiness in and of themselves. Rather, it
is the intimate inter-relationship among these domains that is significant.

Human Rights as indicator

Human rights, as the term is most commonly used, are the rights that
every human being is entitled to enjoy and to have protected. The underlying
idea of such rights - fundamental principles that should be respected in the
treatment of all men, women and children - exists in some form in all cultures
and societies. The contemporary international statement of those rights is the
Universal Declaration of Human Rights.

The declaration covers two broad sets of rights. One set is known as
Civil and Political Rights. The other set of rights is known as Economic,
Social and Cultural Rights. In the words of the declaration, these two sets of
rights aim to give all people “freedom from fear and want.” Both sets of
rights must be protected as the “foundation of freedom, justice and peace in
the world.”

It is the responsibility of governments to protect the human rights

proclaimed by the declaration. Under the provisions of Civil and Political
Rights, all governments are to protect the life, liberty and security of their
citizens. They should guarantee that no-one is enslaved and that no-one is
subjected to arbitrary arrest and detention or to torture. Everyone is
entitled to a fair trial. The rights to freedom of thought, conscience, religion,
and to freedom of expression are to be protected.
Under the heading of Economic, Social and Cultural Rights, all
governments are expected to try progressively to improve the living
conditions of their citizens. For example, they should try to guarantee the
right to food, clothing, housing and medical care, the protection of the family
and the right to social security, education and employment. They are to
promote these rights without discrimination of any kind.

• Human rights are the natural rights of all human beings irrespective of their sex.
• Efforts are made all over the world to take adequate measures for the promotion
and protection of human rights.
• It is only through communication that people become aware and educated about
their rights, which they can exercise or have been granted to them.
• The United Nation General Assembly adopted the Universal Declaration of
Human Rights on 10th December 1948, according to which all men and women are
entitled to civil, political, economic, social, cultural rights and freedom for the
people of the world.
• The United Nations and other international organizations, several non-
governmental organizations: Amnesty International, In India the People’s Union
of Civil Liberties and the Media have been creating greater awareness.
• Ex: The Frontline in its issue of 24 Sep’ The Times of India in its special report on
28 Nov, both in 1999 spell out in detail the gross violation of Human Rights in
Tamil Nadu.
• Every Development programme should incorporate an aspect on human rights and
development communicators must shoulder the responsibility of educating various
target groups how to respect and exercise human rights and how to work towards
conquering them. This requires democratization of communication. Access to all
existing media to the masses and sharing information and the facts related to
human rights without any discrimination.
• According to Varadarajan,” freedom of information and human rights have
become issues of world concern approximately at the same time-for the freedom to
know and to communicate constitutes a vital human right. Without this freedom,
other human rights cannot be exercised effectively either within National borders
or within the world community. The expansion of human rights therefore depends
largely on the success of expanding the flow of information everywhere.”
• The preamble to the constitution, fundamental rights and directive principles,
which together have been described as forming the core of the constitution reflect
the basic principles of the Universal Declaration of Human Rights.
• The Declaration by United Nations on 4th Dec, 1986 Article 8, Says-The States
should undertake, at the National level, all necessary for the realization of the right
to development and shall ensure, equality of opportunity for all in their access to
basic resources, education, health services, food, housing, employment and the fair
distribution of income. Effective measures should be undertaken to ensure that
women have an active role in the development process.
• The problems in enforcement of human rights also should be communicated to the
masses. Their participation and cooperation should be sought in and controlling
these problems.
• The real challenge is to prepare a development communication strategy to
highlight human rights. So far media have not been successful in projecting an
impressive and popular image of human rights issue, which constitutes an integral
part of life and activity of the average citizen.

The Human Right principles to guide development programming identified in this

agreement are:

• Universality and inalienability

• Indivisibility
• Interdependence and interrelatedness
 • Equality and non-discrimination
• Inclusion and participation
• Accountability

This becomes a major hindrance in using participatory approach to development.

Therefore, human rights have also become one of the areas of concern for
development.

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