Overview of Global Measurement Indexes: Concepts, Applications, and Limitations

This article provides an overview of key indices used to measure economic and social development worldwide. The Global Competitiveness Index (GCI), published annually by the World Economic Forum, assesses national competitiveness based on 12 pillars, categorizing economies into three stages: factor-driven, efficiency-driven, and innovation-driven. While GCI offers insights into resource utilization and development strategies, it has yet to fully integrate environmental and cultural factors. Meanwhile, the Human Development Index (HDI) by UNDP evaluates human development based on life expectancy, education, and income, expanding measurement beyond economic growth. However, HDI does not fully reflect inequality and educational quality across nations. The Multidimensional Poverty Index (MPI) by UNDP and OPHI measures poverty through three dimensions: health, education, and living standards, providing a more detailed perspective on poverty but lacking representation of happiness and spiritual aspects. Additionally, indices such as the Youth Development Index (YDI) and the Better Life Index (BLI) focus on youth welfare and overall quality of life. These indices play a crucial role in policymaking, helping governments track progress and identify areas for improvement. However, challenges remain in data collection, methodological consistency, and adapting indices to specific national contexts. This article analyzes the strengths and limitations of these indices and draws lessons for their application in Vietnam.