Development - measurement

Question 1

GDP per capita drawbacks

Answer 1

Doesn’t show inequality

• 80% of the world’s population live in a country where inequality is rising
• 2003 richest 10% in Latin America earned 48% of the income, while the poorest 10% earned 1.6%
• Equatorial Guinea is richest per capita in Africa, but is 136th on HDI, 1/2 population don’t have water, and 20% of children die before they are 5

Other factors not shown

• China, second largest economy in the world
• ranked 171/178 on Press Freedom Index
• inequality rising

Question 2

Alternative measurements

Answer 2

UN Human Development Index
- uses life expectancy
- average purchasing power
adult literacy