4.3 Emerging and developing economies Flashcards
What does HDI stand for
Human development index
What is the HDI
- introduced in 1990 UN
is a composite index measuring the average achievement in basic areas of economic development
Consists of
- health
- education
- living
What is the health section of HDI
measured by the life expectancy at birth
- represents levels of national healthcare
What is the Knowledge section of HDI
first an educational component kade of the
- means years of schooling
- expected years of schooling
What is the income section of HDI
as measured by the real Gross national income per capita at PPP
What does the HDI do
published by the UNDP and focuses on longevity, basic education and minimal income
- it tracks progress made by countries in improving these three outomes
- the inclusion of education and health indicates sign of successful government policies in providing access to important merit goods
Why is GNI used instead of GDP for the HDI
GNI is now used rather than GDP because of the growing size of remittances in the global economy and the importance of international aid payments
What are the advantages of of using HDI
- composite indicator which provides a more useful comparison metric than single indicator do
- corporates 3 important household metrics
- wifely used all over the world which provides an opportunity for meaningful comparisons
- provides a goal for governments to use when developing their policies
- provides citizens at understanding how their quality of life compares to other countries
What are the disadvantages of the HDI
- it does not measure the inequality that exists as it uses the mean GNI/capita
- it does not measure or compare the levels of absolute and relative poverty that exist
- many countries it does not provide useful short-term information as gathering the data required for the calculation is difficult. This means the data often lags by several years.
What does IHDI stand for?
Inequality adjusted HDI
What is the IHDI
adjusts the HDI for inequality distribution of each dimension across the population
What are the characteristics of IHDI
- created to deal with the lack information that hid provides
- will be equal to HDI value when no inequality, but falls below the HDI value as inequality
- the IHDI measures the level of human development when inequality is accounted for
- difference between the two can be presented as a percentage
- it provides greater insight into the differences in human development that exist in a country as opposed to the average development
What does MPI stand for
multi dimensional poverty index
What is the multi dimensional poverty index
reflects the mult deprivations that poor people face in education, health and living standards