Flashcards in The Limits of the HDI Deck (13):
Author of the paper?
Three components of the HDI
'Longevity', 'knowledge' and 'economic welfare'.
First limitation: HDI fails to take into account...
...the degree of economic and social cohesion in a country, and hence to the extent to which the population shares in the average progress achieved there.
FINLAND and USA
Have almost exactly the same HDI levels, but in USA the income of the wealthiest 10% of the population is 15.9 times that of the poorest 10%, while in FINLAND it is only 5.6 times greater.
Second limitation: HDI fails to reflect any...
...development-oriented strategies that may be adopted by govts to translate economic growth into development.
Technique to check if improvements in the HDI are driven exclusively by increases in per capita income
The position of a country in the world ranking for GDP per capita can be compared with its position in the HDI ranking.
Third limitation: HDI does not reflect the...
...prospects for development in a country on the basis of sustainability of current development levels.
Countries that dedicate fewer resources to R&D can be expected to find it more difficult to compete in new markets so their positions will be weaker.
Balance of Payments sustainability
BofP and external debt indicators give an idea of the degree of dependence of a state on external funding and can provide early warning of potential constraints on its economic performance.
Refers to the degree to which population trends in a country match its need for human resources to make its economy work.
Expected population growth of AFRICA by 2040?
Expected population growth of EUROPE by 2040?