What is the limitations of average income as a measure of development?

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1085549

2026-07-13 13:20

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Average income can be misleading as a measure of development because it does not account for income distribution within a population. High average income might coexist with significant income inequality, leaving large segments of the population in poverty. Additionally, it overlooks other critical factors such as access to education, healthcare, and overall quality of life, which are essential for assessing true development. Consequently, relying solely on average income may provide an incomplete or distorted picture of a country's developmental status.

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