Measurement of Socio-Economic Development Using Better Life Index

The measurement of socio-economic development efforts in developing countries has generally focused on the growth of GDP or GNP per capita. However, economists have become aware that growth of output or income are not adequate indicators of socio-economic development, and that the diminution of poverty and the satisfaction of human needs should be included in a measure of socio-economic development. The aim of this paper is to evaluate the measure of socio-economic development by an alternative indicator Better Life Index - BLI. The use of this index points his ability to express the quality of growth processes in the economy and defines its impact on the practice of economic policy. The method of DEA (data envelopment analysis) is used to identify the dimensions involving qualitative aspects of development respectively what is the potential for improvement in a reduction of inequality among countries.