Measuring Development
Gross Domestic Product (GDP) per Capita
- Gross Domestic Product (GDP) per capita is the total value of goods and services produced within a country in a year divided by the population of the country
- There can be huge differences in GDP depending on the size and population of a country
- Dividing it by the population means that more meaningful comparisons can be made between countries
- GDP per capita is an average this means that the variation in wealth is hidden
- It is possible that two countries can have the same average GDP per capita but that one has a few very wealthy people and lots of people living in poverty whereas the other has a more equal distribution of wealth
- There is no way of knowing what the GDP is spent on - for example, GDP increases after an earthquake due to the rebuilding which is needed this does not mean that the country is more developed or that everyone's quality of life has improved