The Limits of the HDI Flashcards Preview

Economic Development > The Limits of the HDI > Flashcards

Flashcards in The Limits of the HDI Deck (13):
1

Author of the paper?

Bilbao-Ubillos (2011).

2

Three components of the HDI

'Longevity', 'knowledge' and 'economic welfare'.

3

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.

4

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.

5

Second limitation: HDI fails to reflect any...

...development-oriented strategies that may be adopted by govts to translate economic growth into development.

6

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.

7

Third limitation: HDI does not reflect the...

...prospects for development in a country on the basis of sustainability of current development levels.

8

Technology sustainability

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.

9

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.

10

Demographic sustainability

Refers to the degree to which population trends in a country match its need for human resources to make its economy work.

11

Expected population growth of AFRICA by 2040?

>1%.

12

Expected population growth of EUROPE by 2040?

Negative.

13

Environmental sustainability

HDI does no consider the depletion of non-renewable natural resources.