4.3 emerging and developing economies

Question 1

What are the 3 indicators associated with HDI?

Answer 1

1. Health - Life expectancy
2. Education - Average/mean number of years a 25 year old has received
3. Income - Real gross national income per capita

Question 2

Advantages of using HDI

Answer 2

• Widely used all over the world which provides an opportunity for meaningful comparisons
• Helps Governments identify goals/targets to set up/remove any policies etc.
• Provides citizens an understanding of how their quality of life compares to others

Question 3

Disadvantages of using HDI

Answer 3

• Inability to measure inequality as it uses the mean GNI/capita
• Doesn’t measure nor compare levels of absolute or relative poverty that exist
• Not useful for providing information in the short term as gathering the data is time consuming/difficult. Hence, data often lags reality by many years.