Abstract:

To determine the economic level, respect. rate of economic development, the two most commonly used indicators, are gross national (domestic) product and gross national income. These indicators are used because of the relative ease of finding and understanding them. According Hokrová and Taborská (2008, p 104) they have their limitations – they "measure only formal monetary policy and do not include the informal economy, or social, political, cultural and environmental aspects of development." It was therefore necessary to create a new indicator that reflects the issues of development and maturity, and thus measure the overall socio-economic development.

According to Todaro and Smith (2011), the most used indicator to measure socio-economic development is called the Human Development Index - HDI. This is also the indicator which has been used by the UNDP since 1990. Because economic, respect. socio-economic development is very closely linked with the problems of poverty, which can not be measured only by income, another index was developed to measure it (and therefore its impact on other aspects of the development of individual economies), the human poverty index - HPI. Both of these indices will be analyze in this paper, in relation to the LDCs.