4.3

Question 1

What are the 3 objectives of development?

Answer 1

1. Life sustaining goods and services: To increase the availability and widen the distribution of basic life sustaining goods such as food, shelter, health and protection services.
2. Higher incomes: To raise levels of living, including, in addition to higher incomes, the provision of more jobs, better education, and greater attention to cultural and human values, all of which will serve not only to enhance material well-being but also to generate greater individual and national self-esteem
3. Freedom to make economic and social choices: To expand the range of economic and social choices available to individuals and nations by freeing them from servitude and dependence not only in relation to other people and nation-states but also to the forces of ignorance and human misery.

Question 2

What is economic growth?

Answer 2

o A sustained rise in a country’s productive capacity
o An increase in real value of GDP / GNI per capita
o Increases in the productivity of factors of production

Question 3

What is economic development?

Answer 3

o Progress in expanding economic freedoms
o Sustained improvement in economic and social opportunities
o Growth in personal and national capabilities

Question 4

What are the 3 factors that the HDI takes into account?

Answer 4

1. Knowledge: First an educational component made up of two statistics – mean years of schooling (of those already in the workplace) and expected years of schooling (of those still in school)
2. Long and healthy life: Second a life expectancy component is calculated using a minimum value for life expectancy of 25 years and maximum value of 85 years
3. A decent standard of living: The final element is gross national income (GNI) per capita adjusted to purchasing power parity standard (PPP)
   * GNI (Gross National Income is used because of the growing size of remittances across countries)
   * Log of income is used in the HDI calculation because income is instrumental to human development, but higher incomes are assumed to have a declining extra contribution to human development.

Question 5

What are the disadvantages of using the HDI

Answer 5

• The standard HDI measure does not take account qualitative factors, such as cultural identity and political freedoms (human security, gender opportunities and human rights)
• The GNI per capita figure – and consequently the HDI figure – takes no account of income distribution.
• If income is unevenly distributed, GNI per capita will be an inaccurate measure of people’s well-being
• Purchasing power parity (PPP) values used to adjust GNI data change quickly and can be inaccurate
• Higher GNI may result in more spending on aspects that could reduce living standards e.g. polluting power stations rather than green energy production, or armaments

Question 6

What are the advantages of using the HDI

Answer 6

• Relatively easy data to collect and compare
• As objective as possible – it could be difficult, for example, to come up with an accurate/reliable measure of more qualitative factors such as freedom of speech
• Measures such as longevity and education levels are indicative of other development factors
  o People tend to live longer if there is better access to doctors and healthcare, access to good
  sanitation and housing etc

Question 7

Give 10 sustainable development goals

Answer 7

1. Goal 1 End poverty in all its forms everywhere
2. Goal 2 End hunger, achieve food security and improved nutrition, promote sustainable agriculture
3. Goal 3 Ensure healthy lives and promote well-being for all at all ages
4. Goal 4 Ensure inclusive and equitable quality education and promote life-long learning opportunities for all
5. Goal 5 Achieve gender equality and empower all women and girls
6. Goal 6 Ensure availability and sustainable management of water and sanitation for all
7. Goal 7 Ensure access to affordable, reliable, sustainable, and modern energy for all
8. Goal 8 Promote sustained, inclusive and sustainable growth, full and productive employment and decent work for all
9. Goal 9 Build resilient infrastructure, promote inclusive & sustainable industrialization and foster innovation
10. Goal 10 Reduce inequality within and among countries