4.3 Emerging And Developing Economies

Question 1

Human development index (HDI) factors:

Answer 1

HDI = measure of economic development calculated by UN (composite index) based on:

• health (life expectancy at birth)
• education (mean years of schooling of adults aged 25+ & expected yrs of schooling of current 5 yr old over their lives)
• income (real GNI per capita at purchasing power parity)

Each of 3 indicators given equal weighting & mean taken to give figure between 0 and 1 (higher number = greater level of development)

Question 2

Advantages & Limitations (disadvantages) of HDI to compare levels of development between countries, over time

Answer 2

+ composite factor so includes many factors all contribute to development

+ relatively easy to calculate as govs tend to collect these statistics regularly

• health takes no notice of quality of life ppl enjoy & education doesn’t take into account quality & success of education
• no consideration for equality of income
• other factors affect development too (freedom from corruption, the environment)
• only an indicator, not precise measure so not exact

Question 3

Other indicators of development

Answer 3

The Inequality-adjusted Human Development Index (IDHI)

• adjustment of HDI, includes 4th indicator of development (inequality). Atkinson Index adjusts measures for education, health, income.