Question

Explain in brief, the limitations of Physical Quality of Life Index.

Answer 1

Limitations of PQLI:

1. PQLI is calculated on the basis of only 3 indicators. On the basis of just three indicators it cannot be said whether the country has actually developed or not. To get a correct picture we need to include other factors also.
2. PQLI gives only average. As per the equation of PQLI, the values obtained from three indicators are divided by 3 to obtain PQLI which is in the form of average.
   Average of three aspects of a country does not show the prominence or backwardness of each indicator. Hence, one cannot make decisions on the basis of averages.
3. If a country’s present PQLI is high, it cannot be generalized that the economic development is high compared to other countries.
4. It is not right to give equal weightage of 100 to all indicators because all three aspects do not have same importance in human life.
5. Growth of income has high importance in physical quality of life index. PQLI does not consider this which is a major limitation.
6. The PQLI of rich countries rise at a slower rate because average life cannot increase beyond a particular limit.