Understanding Key Indicators of World Development

WDI- World Bank

Muqaddas Khan

World Development denotes the process by which states are changing positively, growing their economy, advancing their technology, increasing their resources, protecting their environment, controlling their poverty, reforming health as well as education system, maintaining gender equality etc.

This article intends to provide  guidance to weigh world development and provide certain indicators on the basis of which it can be measured.

There are ten most important indicators of world development which are discussed further.

1. Gross Domestic Product (GDP):

Gross Domestic Product (GDP) of a country makes the total value of its production and services including technology now a days, during certain timeframe. It is also used to measure the economic development of a country.

The statistics of global GDP in 2022 were 101,560.9 billion USD and these are projected as 106,181.92 billion USD for 2023, data of Work Bank revealed.

2. The Human Development Index (HDI):

The Human Development Index (HDI) is used to measure the aggregate of country’s life expectancy, health, education and income capacity. States are ranked on account of these human development indicators.

According to World Population Review; Switzerland, Norway and Iceland ranked at top three among the countries in 2022 regarding their human development indexes. They have also maintained their rank during the year 2023 so far.

3. Governance:

Governance mechanism of a state ensures the smoothness of development. Governance itself is measured by the stability, accountability, transparency, efficiency, openness, and rule of law.

According to a world bank report, Denmark and Finland ranked at top two positions among the states measured for global governance index. World Bank shall issues ranking for 2023 by the end of this year.

4. Health Security:

Development of Health system in a country in measured by life expectancy, infant and mother mortality rate, ratio of hospitals for population, access to health facilities, professional staff and medical equipment.  

According to the report of Statista, for global Health index by year 2023, Singapore has ranked first so far with health index score of 86.9, followed by Japan and South Korea. 

5. Education:

Education is the most important part of social and economic development. It is measured on the basis of literacy rate, enrolment rate, years of education, research etc.

According to World Population Review; United States, United Kingdom and Germany ranked at top three last year among the countries measure for education index. While for the current year of 2023, Germany, Finland and Iceland have been ranked at top three so far.

6. Employment:

Employment development index includes the number jobs in accordance with proportion of population, employment rate, labor force, participation rate, quality of the job and salary.

According to International Labor Organization, Japan had the highest employment rate last year in 2022.

7. Poverty Rate:

Poverty stands amongst the key indicators of development. Poverty rate is measured by the aggregate of people living below the threshold of basic standards of living.

According to the statistics given by World Bank, South Sudan, Equatorial Guinea, Madagascar, Eritrea and Guinea Bissau stood among the countries with highest poverty rate in 2022.

According to the date revealed by Organization for Economics Cooperation and Development (OECD), Iceland, the Czech Republic and Denmark remained among the countries with lowest poverty rate in 2022.

8. Environmental Protection:

Environmental Protection rate includes the measurement of air and water quality, emissions of greenhouse gases, deforestations and climate disaster management system.

In 2022, Chad, Somalia, Syria, Congo, Afghanistan, India and Pakistan were reported among the most climate vulnerable countries.

9. Gender Equality:

Gender equality is also considered for key social, political and economic development indicator. It includes rate of women’s rights, political participation, inclusion in employment, protection from harassment.

Greentown University issued a report in which it claimed that Norway, Finland and Iceland are top three countries ranked for Gender and development index.

10. Basic Infrastructure:

Infrastructure indicates the access to basic facilities like electricity, water, sanitation, roads, parks and markets. This is weighed for quality of life as well as for economic development.

University of Notre Dame issued ranking in 2022 for infrastructure. In the row of 189 countries, Norway stood at top for upper, Colombia ranked second for upper middle and Algeria was third for lower middle income groups.

The writer has done MS in International Relations from International Islamic University, Islamabad