4.3.1 Measures of development Flashcards
Measures of development
- Economic growth
- Economic development
- HDI
HDI
Three measures of index
- education
- health/life expectancy (25-85 years)
- living standards (real GNI per head at PPPs)
These are ranked in an index between 0 and 1: the higher the value, the higher the level of development
HDI comparison of highest and lowest
2015:
• One of the highest HDI = Norway at 0.944
• One of the lowest HDI = Malawi at 0.445
Developed country HDI
• Switzerland 2021 = 0.962
• Netherlands 2021 = 0.941
• UK 2022 = 0.932
Developing country HDI
• Algeria 2021 = 0.745
• Philippines 2021 = 0.699
• Chad 2021- 0.394 – poorly managed, poor governed
HDI (education)
the mean years of schooling for an adult aged 25 and expected years of schooling for a pre-school child
Advantages of HDI
it combines the effects of increased growth with other quality of life indicators
- education and health are important development factors to consider, and it can provide info about the country’s infrastructure and opportunities. It also shows how successful government policies have been.
- better than GDP
Disadvantages of HDI
This does not take account of
- income distribution
- quality of education
- gender equality
- environment
- political freedom
- other measures of deprivation and, in that respect, is regarded by some as being of limited value.
Disadvantages of HDI (political freedom)
HDI does not consider how free people are politically, their human rights, gender equality or people’s cultural identity.
Disadvantages of HDI (environment)
HDI does not take the environment into account. It could be argued that this should be included to focus on human development more.
Disadvantages of HDI (inequality)
HDI does not consider the distribution of income. A country could have a high HDI but be very unequal. This can mean many people might still be in poverty.
Other measures of development
- Inequality adjusted HDI
- Multi-dimensional Poverty Index (MPI)
- Human Poverty Index (HPI)
- Gender-related development Index (GDI)
Other measures of development (Inequality adjusted HDI)
- was introduced in 2010
- the IHDI is the HDI adjusted for inequalities in the distribution of achievements in each of the three dimensions of the HDI
- The IHDI = HDI value when there is no inequality, but < the HDI value as inequality rises.
- The difference between the HDI and the IHDI shows the ‘loss’ in potential human development due to inequality and can be expressed as a percentage.
Other measures of development (- Multi-dimensional Poverty Index (MPI))
- was published for the first time in 2010
- It reports and complements money-based measures by considering multiple deprivations and their overlaps
- identifies deprivations across the same three dimensions as the HDI
- shows the no. of people who are multi-dimensionally poor (suffering deprivations in 33% of weighted indicators) and the no. of deprivations with which poor households typically contend. It can be deconstructed by region, ethnicity and other groupings as well as by dimension, making it a useful tool for policymakers.
Other measures of development (human poverty index)