4.3.1 Measures of development

Question 1

Economic growth

Answer 1

An increase in the size of a country’s GDP.

Question 2

Economic development

Answer 2

A normative concept which involves making value judgements about what would make up a ‘more developed’ country.

Question 3

Difference between hdi and Gini coefficient

Answer 3

The HDI is a summary measure of a country’s average achievements in three basic aspects of human development: a long and healthy life, knowledge, and a decent standard of living.
Components:
Health: Measured by life expectancy at birth.
Education: Measured by mean years of schooling and expected years of schooling.
Standard of Living: Measured by gross national income (GNI) per capita.
Interpretation:
The HDI provides a broad overview of a country’s overall development level, but it doesn’t capture income inequality or other important aspects of human development.

• Purpose:
  The Gini coefficient is a statistical measure of income inequality, indicating the extent to which income distribution deviates from a perfectly equal distribution.
  Interpretation:
  A Gini coefficient of 0 represents perfect equality (everyone has the same income).
  A Gini coefficient of 1 (or 100%) represents perfect inequality (one person has all the income).
  A higher Gini coefficient indicates greater income inequality.