To measure economic development the traditional approaches are concerned with, increase in GNP, increase in per capita GNP. But with the passage of time a dissatisfaction developed against these measures. Rather these measures, it was emphasized to use the measures of "Employment and Distribution". This chapter provides knowledge of economic development – basic need approach or physical quality of life approach. | 2. Economic Development – Basic Need Approach or Physical Quality of Life Approach Lecture 7 Background To measure economic development the traditional approaches are concerned with, increase in GNP, increase in per capita GNP. But with the passage of time a dissatisfaction developed against these measures. Rather these measures, it was emphasized to use the measures of "Employment and Distribution". But so many economists are of the view that criteria of Increase in Employment is not a suitable index of economic development. It is so because that the unemployment which is found in UDCs is different from that unemployment which exists in DCs. Therefore, it will be least attracting to measure economic development with increase in employment. In the same way, to link Redistribution of Income with economic development may not be accepted as it may happen that poverty is existing in a country despite equal distribution of income, or unequal income distribution is co-existing with fall in absolute poverty. In such state of affairs the economic development would require the abolition of absolute poverty and adversity, which could be possible only if people get the Basic Needs of life. Therefore, the economists use the criterion of basic needs to measure economic development. According to this approach if people are in a position to avail more amount of food, have better access to educational facilities, and have greater command over the civic amenities like water supply, water sewerage, health care and shelter etc., all such would represent economic development. Therefore, according to this approach whether GNP and per capita GNP increase or not, whether a fairer distribution of income is made or not, the real matter lies with the Provision of Basic Needs or facilities to the people. This index identifies the components of the produced goods and the segments of the society which are benefited by such goods and services. Therefore, if people . | 2. Economic Development – Basic Need Approach or Physical Quality of Life Approach Lecture 7 Background To measure economic development the traditional approaches are concerned with, increase in GNP, increase in per capita GNP. But with the passage of time a dissatisfaction developed against these measures. Rather these measures, it was emphasized to use the measures of "Employment and Distribution". But so many economists are of the view that criteria of Increase in Employment is not a suitable index of economic development. It is so because that the unemployment which is found in UDCs is different from that unemployment which exists in DCs. Therefore, it will be least attracting to measure economic development with increase in employment. In the same way, to link Redistribution of Income with economic development may not be accepted as it may happen that poverty is existing in a country despite equal distribution of income, or unequal income distribution is .
