4.3.1 Measures of development

Question 1

Human Development Index (HDI)

Answer 1

HDI is a composite index that measures economic development.

It is based on three factors:
-Health - measured by life expectancy at birth.
-Education - measured by the mean years of schooling and the
expected years of schooling.
-Living standards - measured by real GNI per capita at purchasing power parity.

Each of the three indicators is given equal weighting and a mean is taken to give a figure
between 0 and 1. The higher the number, the greater the level of development.

Question 2

Advantages of using HDI to compare levels of development between countries over time

Answer 2

-Relatively easy data to collect and compare i.e. it would be difficult to come up with an accurate/reliable measure of more qualitative factors such as freedom of speech.
-It takes into account three key factors which are important for the development of a
country.

Question 3

Disadvantages of using HDI to compare levels of development between countries over time

Answer 3

• Ignores qualitative factors, such as democracy, quality of education or human rights.
• Ignores other measures ranging from gender equity, proportion of the workforce in agriculture to environmental biodiversity.
  -Ignores income distribution.
  -PPP values change very quickly and are likely to inaccurate or misleading.

Question 4

Other measures of development: