5. From GDP per capita to HDI and beyond Flashcards
What are Indicators of Development?
The extent to which a country has developed may be assessed by considering a range of narrow and broad indicators, including per capita income, life expectancy, education, and the extent of poverty.
What is HDI (Human Development Index)?
Provide a means of measuring economic development in three broad areas - per capita income, heath and education. The HDI tracks changes in the level of development of countries over time.
What are the features of HDI?
A scale from 0 (no development) to 1 (complete development).
An index, which is based on three equally weighted components:
1. Longevity, measured by life expectancy at birth
- Knowledge, measured by adult literacy and number of years children are enrolled at school
- Standard of living, measured by real GDP per capita at purchasing power parity.
How do you ‘interpret the figures’ of HDI?
0 – 0.49 means Low Development
- 5 – 0.69 Medium Development
- 7 to 0.79 means High development
- 8 + very High Development
What are the factors of Life Expectancy?
A variety of factors may contribute to differences in life expectancy, including:
1. stability of food supplies
- War
- The incidence of disease and natural disasters
- According to World Bank figures, life expectancy at birth in developing countries over the past 40 years has increased by 20 years.
How is Adult literacy measured?
The percentage of those aged 15 and above who are able to read and write a simple statement on their everyday life.
How is GDP per capita found?
It is found by measuring Gross Domestic Product in a year, and dividing it by the population.
What is the criticism for HDI?
The HDI index is for a single country, and as such does not distinguish between different rates of development within a country, such as between urban and traditional rural communities.
Critics argue that the equal weighting between the three main components is rather arbitrary.
As with the narrow measure of living standards, GDP per capita, there is no indication of the distribution of income.
In addition, the HDI excludes many aspects of economic and social life that could be regarded as contributing to or constraining development, such as crime, corruption, poverty, deprivation, and negative externalities.
What additional indicators have been added by the UNDP?
HDI adjusted for income inequality
HDI adjusted for gender inequality
HDI adjusted for levels of poverty
