9.3 Human Development Index Flashcards
1) What are the pros of using the Human Development Index (HDI) as a measure of development?
The HDI is a more comprehensive and broader measure of development than any single indicator. It considers incomes, school progress, and health progress. While GNI/capita alone is too narrow, the HDI takes into account multiple dimensions of development. It allows for meaningful comparisons of development progress between countries. It provides insights into development outcomes beyond economic growth and guides policy and resource allocation for future development
3) How does the HDI allow countries to track their development progress over time?
The HDI serves as a composite and trusted indicator of development, enabling countries to measure their development progress from year to year and decade to decade. It facilitates the evaluation of policies and government effectiveness for development. By monitoring changes in the HDI over time, countries can make informed judgments about the impact of their strategies and allocate resources accordingly.
4) In what way does the HDI aid in making effective policy decisions and directing aid money?
The HDI provides a clear breakdown of development progress, indicating areas that require concentration. This makes it an excellent tool for making effective policy decisions and efficiently directing aid money in developing countries. By identifying strengths and weaknesses in the HDI components, policymakers can prioritize interventions and justify resource allocation based on the specific needs of a country.
1) What is a limitation of the HDI regarding different rates of development progress within a country?
The HDI does not differentiate between different rates of development progress within a country, such as the disparities in development outcomes between urban and rural areas. It fails to account for income inequality within a country and the impact of inequality on development. However, this limitation can be overcome by using the income inequality adjusted HDI (IHDI), which considers income distribution and provides a more comprehensive indicator of development.
2) Why might the equal weighting of incomes, schooling, and healthcare in the HDI be considered arbitrary?
In the HDI, incomes, schooling, and healthcare scores are weighted equally. This equal weighting can be seen as arbitrary, especially if there is a clear imbalance where one area, such as healthcare, is lacking more than others. Consequently, it becomes harder to efficiently allocate funds and aid money may be directed to areas that are not in utmost need.
3) What is a criticism of the HDI in terms of its coverage of development factors?
The HDI only comprises three areas of development: incomes, schooling, and healthcare. Some argue that this narrow focus overlooks a multitude of other factors that contribute to development, such as freedom, gender equality, infrastructure, poverty alleviation, and a clean environment. These factors are not directly measured in the HDI. Nonetheless, it can be argued that the selectivity and focus on three major pillars of development is justified, especially considering the difficulty in measuring and including all aspects of development.
