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CompetitiveExams:EvolutionofAlternativeMeasuresExamrace

Thesecorrections,however,didnotleavemanypeoplesatisfiedandnationalincomeoritspercapitavariantasindicatorsofwelfare
havebeeninuseforlongthoughwithreservations.However,inthelastfewdecades,someattemptshavebeenmadetodevelopsome
alternativeindicatorsofeconomicwelfareandofsocialdevelopment.Searchforbetterindicatorsofsocialdevelopmenthascontinued.
WeoftenreadinthenewspaperthatSriLankahasafairlyhighlifeexpectancy,lowinfantmortalityandgoodliteracylevels.Thelevels
inSriLankaarecomparabletotheircounterpartsindevelopedcountries.OurownstateKeralahasdonewondersonliteracyfrontas
wellasondemographyfront.TamilNaduisalsofaringwell.Therefore,itwasnaturalforresearcherstotrytodevelopsuchindicesas
wouldcapturethesesocialdimensions.
ThereisanUNinstitutioncalledUnitedNationsResearchInstituteforSocialDevelopment(UNRISD).Inthisinstitute,peopletriedto
developsuchindicesaswouldencompasssocial,politicalandeconomicvariables(indicators)impinginguponindustrialisation,
urbanisationandmodernisation.Theywentonenlistingindicators,whichtheythought,reflectedsomeortheotherdimensionof
development.Atonestage,theylistedasmanyas73indicatorsthough,finally,theyselectedonly16asitwasfoundthatmanyofthe
indicatorswerereflectedthroughothers.Hospitalbedsandnumberofdoctorsperlakhofpopulation.Theyalsoincludedenrolment
rates,electricityconsumptionandsteelconsumptionperhead.Lengthofmetalledroads,numberofvillageselectrifiedandavailability
ofpostofficesalsogottheirwayintoit.Sodidthecharacterofagriculturalorganisation.Theseareimportantindicatorsandare
consideredbymanyastheendsinthemselves.
Aquestionwas,however,raised:Whetherinputscanbetakenasdevelopmentindicators.Whileenrolmentrateindicatesaninput,
literacyrateshowstheoutput.Whilehospitalfacilitiesindicateinputs,lifeexpectancyshowstheoutput.Ifyouhavebettersanitation,
youhavebetterhealthandyourequirelessofhospitalfacilities.Evenincomeisinawayaninput.Researchersandpolicymakerswere
notveryhappywithsuchalternativestonationalincomeaswelfaremeasuresastheydidnotfindtheapproachsuitabletoproducea
meaningfulsocialindicator.Attemptswere,then,madetodevelopcompositeindexofdevelopment,purportedlybasedonaimsand
objectivesofdevelopmentoroutcomesofthedevelopmentprocessratheronthemeansthereof.

QualityofLifeIndices
Wemayrecalltheconstituentsofqualityoflifeinthepreviouschapter.Theyweregenerallyindicatedashealth,freedom,education,
environment,etc.thethingsthatyoudirectlyenjoy.Basedontheseparameters,attemptshavebeenmadeintherecentpastto
constructindices,whichmay,broadly,becalledindicesofqualityoflife.Infact,longevityandForeigntradepercapita,1960US
$PercentageofsalariedandwageearnerstototaleconomicallyactivepopulationWhileatyourlevel,itisnotnecessarytogointothe
nittygrittyofthewaystheindicesweredeveloped,anideaofthevariablesthatwereincludedinsuchattemptscouldbeofsome
interest.Thevariablesincludedarepercapitaincome,literacyhaveundisputedlybeenacceptedasparametersofqualityoflife.We
shallbestudyingtwopopularindices,viz.PhysicalQualityofLifeIndex(PQLI)andHumanDevelopmentIndex(HDI),whichhaveboth
usedlongevityandliteracyasbasicconstituents.Thereis,indeed,anattempttomeasurequalityoflifeandwewillmakereferencetoit
towardstheend.Itisimportanttoremindatthisstagethattheseindicesweredevelopedintheinternationalcontextandwereused
forrankingdifferentcountriesaccordingtonumericalvalueofachievementindescendingorder.Theindicesaresimplearithmetic
averagesofnormalisedaggregatesforsociety/groups.

PhysicalQualityofLifeIndex
Towardstheendoftheseventiesofthepastcentury,MorrisDavidMorrisperusedthevariablesadoptedbyseveralUNCommittees,the
UNRISD,andtheOECDdevelopmenteconomists.Hefoundthatmostoftheindicatorswereinputstodevelopmentprocessratherthan
resultofthedevelopmentprocess.Theseindicatorsreflectedthebeliefthatthereexistsonlyonecourseofdevelopment.Itimpliedthat
economicallylessdevelopedcountriesaresimplyunderdevelopedversionsofindustrialisedcountries.Thisviewhascertainbiasesand
valuebiasofEurope.Itoverlooksthediversityamongtheunderdevelopedcountriesandthedifferencesinsocialorganisationin
differenteconomies.Moreover,sucheffortsseemtomeasuredevelopmentasanactivityratherthanasanend.He,therefore,proposed
asetofcriteriafordevelopingacompositeindexofdevelopment.Hefurtherproposedthatindicatorschosenshouldreflectresultsand
socialdistributionofresultsandshouldnotreflectvaluesofspecific(EuroAmerican)societies.Compositeindexshouldbesimpleto
constructandeasytocomprehendandshouldleaditselftointernationalcomparison.

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