Why is GDP Per capita not the best indicator of economic development?
Bad hint. GDP per capita, even GDP per capita using purchasing power parity, is a bad measure because it only reflects the total monetary output of the economy; it says nothing about how that output was achieved, which is really what development was all about. As an extreme example, consider Qatar. Its nominal per capita GDP is #2 or #3 in the world: http://en.wikipedia.org/wiki/List_of_cou… Its GDP (PPP) per capita makes it #1 or #2 in the world: http://en.wikipedia.org/wiki/List_of_cou… But Qatar makes most of its money by selling oil and natural gas https://www.cia.gov/library/publications… Its economy is not developed. For example, every developed economy has a large services secto
