4.3.1 Measures Of Development Flashcards
1
Q
What is the HDI?
A
- composite index measuring the average achievement in basic areas of economic development
- consists of three area: knowledge (education), long + healthy life (health) + decent social standard of living (living standards)
2
Q
How is the HDI measured?
A
- knowledge = educational component made up of mean years of schooling + expected years of schooling
- long + healthy life = life expectancy component calculated using minimum value of LE of 25 years + maximum of 85
- a decent standard of living = gross national income (GNI) per capita adjusted to purchasing power parity standard (PPP)
3
Q
Indicators of development
A
- more than just increasing national income
- increasing life expectancy
- increasing number of doctors per thousand of population
- increasing years in education
- improving literacy rates
- access to clean water
- improved sanitation
4
Q
Why is GNI used instead of GDP?
A
- because of growing size of remittances in the global economy + the importance of international aid payments
- remittances increased as a result of globalisation e.g. because of remittances from abroad GNI in the Philippines great,y exceeds GDP
5
Q
What is logarithm of income?
A
- used in the HDI calculation because income is instrumental to human development but higher incomes are assumed to have a declining contribution to human development
6
Q
Classifications of HDI
A
- low = 0.0 to 0.5
- medium = 0.5 to 0.8
- high = 0.8 to 1.0
7
Q
Top 5 countries HDI
A
- Norway
- Ireland
- Switzerland
- Hong Kong
- Iceland
8
Q
Lowest 5 countries HDI
A
- Burundi
- South Sudan
- chad
- central Africa republic
- Niger (lowest)
9
Q
Characteristics of the lowest HDI countries?
A
- extreme/absolute poverty
- low per capita incomes
- poorly developed health + education systems + infrastructure
- all of these countries are within sub Saharan Africa
10
Q
Where is the UK on the HDI list?
A
13
11
Q
What is the contract of HDI rank with GNI rank?
A
- resource rich countries HDI rank is lower than GNI rank
- the country may have higher levels of inequality, high gini coefficient e.g. Brazil, South Africa
- corruption
12
Q
Limitations of GDP or GNI per capita
A
- unequal income distribution means figure is not representative of the average income
- doesn’t measure pollution, negative externalities, hours worked = so if gdp is higher because of more working hours not necessarily true living standards have increased
- doesn’t measure well-being = happiness, stress levels
- doesn’t include liberty, political freedoms, war
13
Q
Advantages of HDI
A
- gives broader picture of development than real GNI or GDP per head
- composite index = covers different areas of development (education, health, living standards)
14
Q
Limitations of HDI
A
- fails to take into account qualitative data e.g. quality of education or quality of life e.g. political freedoms, gender opportunities, security
- income per head doesn’t take into account distribution of income
- PPP values can change quickly + can be misleading
15
Q
What is the IHDI?
A
- inequality-adjusted HDI
- IHDI takes into account the inequalities not account for within different countries by the HDI e.g. the HDI figure in north China is lower than south China
- counteracts the problem of countries with a handful of extremely rich citizens + millions in poverty not being accurately represented + instead show the high level of income inequality
16
Q
Other indicators of development
A
- multi-dimensional poverty index
- Inequality-adjusted HDI
17
Q
What is the multidimensional poverty index?
A
- reports + complements money based measures by considering multiple deprivations + their overlap
- the index identifies deprivations across the same three dimensions as HDI (health, education, living standards)
- shows the number of people who are multi-dimensionally poor (suffering deprivations in 33% of weighted indicators)
- can be constructed by region, ethnicity etc. = useful tool for policymakers
18
Q
What does the different between HDI and IHDI show?
A
- the IHDI will be equal to the HDI value when there is no inequality, but falls below the HDI value as inequality rises
- the difference between HDI + IHDI represents the ‘loss’ in potential human development due to inequality + can be expressed through a percentage
19
Q
Other development indicators
A
- proportion of the population engaged in agriculture
- energy consumption per person
- proportion of population with access to clean water
- proportion of population with internet access
- mobile phones per thousand of population
