9- Measures of development Flashcards
What is a developed economy?
Countries with a high GDP per capita and a high standard of living.
What is a developing country?
Countries with a low GDP per capita and a low standard of living.
Human Development Index (HDI)
The HDI is a composite measure which is used in the United Nations Development Report and which consists of 3 elements:
- Standard of living- measured at GNI per head at PPP
- Health- measured in terms of life expectancy at birth
- Education- measured in terms of mean years of schooling at the age of 25 and expected years of schooling at the age of 4.
Each three has equal weighting
3 elements of the HDI?
- Standard of living- measured at GNI per head at PPP
- Health- measured in terms of life expectancy at birth
- Education- measured in terms of mean years of schooling at the age of 25 and expected years of schooling at the age of 4.
Each three has equal weighting
Advantages of the HDI
- Broader measure than GDP per capita
- Important 3 factors taken into account
- Easy for governments to collect data
Limitations of the HDI
- Too narrowly focused on just 3 aspects of development
- No consideration of equality of income
- Weighted evenly- each element varies for each nation- we don’t know where resources need to allocated.
- Health takes no consideration of quality of life and education no consideration of success.
Measure of HDI
- Between and value of 0 and 1.
- 0-0.49- low development
- 0.5-0.69- medium development
- 0.7-0.79- high development
- > 0.8 very high development
Countries with high HDI outcomes?
- Australia
- UK
- Canada
- Norway
Countries with low HDI outcomes?
- Sub-Saharan Africa
Other measures of development?
- The inequality-adjusted Human Development Index (IHDI)
- The Multidimensional Poverty Index
- The Genuine Progress Indicator
