4.3 Emerging and developing economies

Question 1

What does HDI stand for

Answer 1

Human development index

Question 2

What is the HDI

Answer 2

• introduced in 1990 UN
  is a composite index measuring the average achievement in basic areas of economic development

Consists of
- health
- education
- living

Question 3

What is the health section of HDI

Answer 3

measured by the life expectancy at birth
- represents levels of national healthcare

Question 4

What is the Knowledge section of HDI

Answer 4

first an educational component kade of the
- means years of schooling
- expected years of schooling

Question 5

What is the income section of HDI

Answer 5

as measured by the real Gross national income per capita at PPP

Question 6

What does the HDI do

Answer 6

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

Question 7

Why is GNI used instead of GDP for the HDI

Answer 7

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

Question 8

What are the advantages of of using HDI

Answer 8

• 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

Question 9

What are the disadvantages of the HDI

Answer 9

• 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.

Question 10

What does IHDI stand for?

Answer 10

Inequality adjusted HDI

Question 11

What is the IHDI

Answer 11

adjusts the HDI for inequality distribution of each dimension across the population

Question 12

What are the characteristics of IHDI

Answer 12

• 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

Question 13

What does MPI stand for

Answer 13

multi dimensional poverty index

Question 14

What is the multi dimensional poverty index

Answer 14

reflects the mult deprivations that poor people face in education, health and living standards