Explain why GDP is a poor indicator of economic development, and why development is hard to measure

GDP refers to the total output within a country during a period of time. Whilst this represents economic growth, this does not necessarily measure development. Countries economies can grow, however if living standards within them fall then economic development has not occurred.Instead one may argue that GDP per capita is a better measurement of development, since this accounts for the output within a country per person, and a rise in this indicates that, on average, people are better off within the specific country than previously. However, this is still a single indicator, and therefore ignores other factors which must be accounted for when measuring living standards (inequality, political influence, environmental impact, provision of healthcare).Instead, a successful measurement of economic development within a country must be a composite indicator. In this case, the indicator in question would be HDI (human development index). This measures GDP per Capita, life expectancy, and education in order to create a more well-rounded picture of whether a country has successfully developed. Whilst this provides a better indicator, it still fails to speak on political matters, inequalities, environmental impact. Other indicators do exist which focus on different aspects of development (happy planet index, green GDP per capita), however it is very difficult to find a successful indicator, since there are so many different aspects of development, as well as contrasting views on development itself. However, we do know that a more successful indicator of development must be a composite indicator, rather than merely a single indicator such as GDP.