ABSTRACT
This chapter discusses how development in the sense of levels of living is intertwined with the concept of welfare and the difficulties in making spatial and inter-temporal welfare comparisons. The concept of development has a chequered history. This history shows that, although per capita gross domestic product has often been used as an indicator of development, the concept of development has not always remained synonymous with the growth of per capita income. Usually growth refers to rising economic prosperity commonly measured by increases in per capita income. Hicks defined income as the amount that can be consumed today without endangering the amount that could be consumed in the future, as this reflects a sustainable level of consumption. The level of human development was measured by aggregating three components – level of per capita income, educational attainment measured by literacy and health attainment measured by longevity.
