A number of multivariate statistical techniques such as Principal Component Analysis, Factor Analysis, Discriminant Analysis, Cannonical Analysis and Multidimensional Scaling have so far been applied to the study of development. Some of these applications are examined and it is suggested that a new technique known as ‘Cluster Analysis’ can be used more effectively than the previous ones for analysing the nature and process of development. As an illustration, the technique is applied to group 108 countries on the basis of 120 socioeconomic indicators. The selected countries are also ranked on various social and economic scales by using the Wroc1aw Taxonomic Method and the results provide a lot of important information about the structure of world development.
