4.3.1 - Measures of development

Question 1

What are the three dimensions of human the human development index ?

Answer 1

• Education (Education index)
• Health (life expectancy)
• Living standards (Income per capita)

Question 2

How would you explain how living standards are compared ?

Answer 2

income as measured by real GNI per capita at purchasing power parity.

Question 3

When we combine the different dimensions of the HDI we get a value, what does this value tell us.

Answer 3

Each of the three indicators is given equal weighting and a mean is taken to give a figure between 0 and 1. The higher the number, the greater the level of development.

Question 4

Advantages of using the HDI ?

Answer 4

• It is widely used all over the world which provides an opportunity for meaningful comparisons.
• It incorporates the three of the most important metrics for households i.e health, education and income.

Question 5

Disadvantages of using the HDI ?

Answer 5

• It doesn’t not measure inequality as it uses the mean GNI/capita.
• It also doesn’t measure the levels of absolute and relative poverty that exists.

Question 6

What are some other indicators of development ?

Answer 6

• IHDI (Inequality-adjusted development index) : This just an adjustment if the HDI where Inequality is taken into account.
• MPI (Multi-dimensional poverty index) : an indicator of development that measures poverty beyond just income. It assesses multiple deprivations that people face in three key areas:
  1. Health (e.g., child mortality, nutrition)
  2. Education (e.g., years of schooling, school attendance)
  3. Standard of living (e.g., access to electricity, clean water, sanitation, housing, and assets)

A person is considered multidimensionally poor if they experience deprivations in multiple areas. The MPI provides a more comprehensive view of poverty and development than income alone, highlighting inequalities within countries. - * It can focus in on regions, ethnicities and also any of the three dimensions making it a useful tool for policymakers and non-government organisation (NGOs) working to reduce poverty

Question 7

Sustainable development goals.

Answer 7

Don’t need to know but very nice to have.