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Measuring Development » Comparing Countries with Development Indicators

What you'll learn this session

Study time: 30 minutes

Cambridge spec: 8.1.2

How to use indicators to compare countries at different levels of development
How indicators are linked (correlations)
Why indicators are useful but have limits, and why the HDI helps
How to answer a "compare" or "evaluate" question using data

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Comparing countries with data

Indicators are only useful when you put them side by side. Geographers compare countries by looking at the same indicators for each one. Remember, an indicator is a number that measures one part of development, such as income or health. Here is a table of clearly made-up data for three countries.

Indicator	Country P	Country Q	Country R
GNI per capita (US$)	900	6,500	52,000
Life expectancy (years)	61	72	83
Infant mortality rate (per 1,000 live births)	58	18	3
Adult literacy rate (%)	52	88	99
Doctors per 1,000 people	0.2	1.6	4.1
HDI (0 to 1)	0.48	0.74	0.94

Fig. 1.1 (made-up data)

Country P has the lowest level of development on every indicator. Country R has the highest. Country Q is in the middle. Notice that a higher GNI per capita goes with a higher life expectancy, a higher literacy rate and more doctors, but with a lower infant mortality rate. That is because a lower infant mortality rate is better.

Key terms:

Correlation: a link between two sets of data, where one changes as the other changes.
Positive correlation: both values go up together.
Negative correlation: one value goes up as the other goes down.
Informal economy: work that is not officially recorded, such as street trading or farming for the family's own food.

Correlations between indicators

When you plot two indicators on a graph, they often show a pattern. This is a correlation.

📈 Positive correlation

As GNI per capita rises, life expectancy rises too. In Fig. 1.1, GNI goes from US$900 to US$52,000 and life expectancy goes from 61 to 83 years.

📉 Negative correlation

As GNI per capita rises, infant mortality falls. In Fig. 1.1, it falls from 58 to 3 deaths per 1,000 live births.

Richer countries can afford more hospitals, doctors, clean water and schools. That is why the indicators usually move together. But a correlation shows a link, not proof that one thing causes the other. There are also exceptions, as you will see below.

How useful are indicators?

Indicators let us compare countries quickly and fairly, and show change over time. But each one has weaknesses. In the exam, you should be able to say what they are.

📊 Averages hide inequality

GNI per capita is an average. A country could have a high average while most people are poor and a few are very rich. Rich cities and poor rural areas are mixed into one figure.

💰 The informal economy is missed

Street traders, market sellers and family farmers earn a living but are not officially counted. So the income of a low income country can look lower than it really is.

🔍 Data quality

Collecting data is costly. Some countries have old figures, small surveys or hard-to-reach areas. Some governments may not record data accurately. Countries may also measure things in different ways.

⚠ One indicator can mislead

A single number gives a narrow picture. Made-up Country T has a GNI per capita of US$30,000 because it sells oil, but only 70% of adults can read. Income alone makes it look more developed than it is.

Why the HDI is more useful

The Human Development Index (HDI) combines life expectancy, education and income (GNI per capita) into one score from 0 to 1. Because it joins social and economic measures, it is harder for one strong figure to hide a weak one. In Country T above, the poor literacy would pull its HDI down.

But the HDI is still limited:

It is still an average, so it hides inequality inside a country.
It leaves out things people care about, such as safety, freedom and the environment.
It relies on the same data, which may be old or inaccurate.
One score cannot show which part of development is strong or weak. You need to look at the separate indicators too.

The best approach is to use several indicators together, plus the HDI.

How to answer "compare" and "evaluate" questions

Compare (look for similarities and differences)

Name both countries and use comparing words such as "higher than", "whereas" or "both".
Quote figures from the table for each country.
Use a calculation if it helps, such as the difference or "about three times as much".
Say what the figures show about development.

Evaluate (weigh up strengths and weaknesses)

Give at least one strength, with a reason.
Give at least one weakness, with a reason.
Use an example or figures from the data.
End with a judgement: how useful is it overall, and why?

Worked example

Compare GNI per capita in Fig. 1.1 for Country R and Country P.

Country R has a GNI per capita of US$52,000 whereas Country P has only US$900. The difference is US$51,100. 52,000 ÷ 900 is about 58, so Country R's GNI per capita is about 58 times higher. This shows that people in Country R have far more income and Country R is much more developed economically.

Common mistakes

Do not just list the numbers for each country without comparing them. Do not say a high infant mortality rate is "good" because the number is higher. Do not say a correlation proves one thing causes another. And remember, an evaluate answer needs a judgement, not only a list of weaknesses.

Exam-style question

Fig. 1.2 shows made-up data for three countries.

Indicator	Country J	Country K	Country L
GNI per capita (US$)	1,500	9,000	45,000
Life expectancy (years)	60	74	82
Infant mortality rate (per 1,000 live births)	54	15	4

Fig. 1.2

(a) Identify the country with the highest life expectancy in Fig. 1.2. [1 mark]

(b) Calculate how many times greater GNI per capita is in Country L than in Country J. [2 marks]

(d) Evaluate how useful GNI per capita is on its own for comparing the level of development of countries. [6 marks]

Model answer

(a) Country L. (1)

(b) 45,000 ÷ 1,500 (1) = 30 times. (1)

(c) There is a negative correlation. (1) As GNI per capita rises, infant mortality falls. (1) For example, Country J has US$1,500 and 54 deaths per 1,000 live births, whereas Country L has US$45,000 and only 4. (1)

(d) Top level (5-6 marks): GNI per capita is useful because it is easy to compare and in Fig. 1.2 it matches other indicators: the country with the highest GNI also has the highest life expectancy and lowest infant mortality. It gives a quick idea of how much money a country has to spend on schools and hospitals. However, it is only an average, so it hides inequality within a country: a few rich people can raise the figure while most people stay poor. It also misses the informal economy, such as family farming, and the data may be old or inaccurate. A single indicator can mislead, because it says nothing about health or education directly. So it is a useful starting point but should be used with social indicators or a composite one such as the HDI, which gives a fuller picture.

Exam tip

In part (d), give strengths and weaknesses, use figures from Fig. 1.2, and finish with a clear judgement. That judgement is what lifts an answer into the top level.

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