Good and Bad Growth Flashcards
Author of the paper?
Ravallion (1997).
HDR mentions ‘lopsided development’
Where there is either good growth but little human development or good human development but little growth. HDR suggests growth should be seen as a separate end to HD.
Tradeoffs built into the HDI
Attainments in any of the three dimensions (income, longevity and education) can be directly traded off against each other.
A country with GDP per capita less than the world mean:
An increase of GDP per capita of $99 will exactly compensate for one year less of life expectancy, so as to keep the HDI constant.
A country with GDP per capita three times the world mean:
An increase of GDP per capita of $31,631 will exactly compensate for one year less of life expectancy. HDI therefore assumes that life is far less valuable in poorer countries.
Jobless growth
Income growth exceeds the rate of employment growth.
Ways of avoiding jobless growth
Target labour intensive sectors with subsidies or trade protection.
Is it common for growth to fail to deliver income gains to the poor/
No. On average, a 5% rate of growth for household income can be expected to result in a 10% drop in the proportion of the population living below the poverty line in low-income countries.
The higher the initial inequality of incomes…
The lower the rate at which income poverty falls.
Main reason for the increasing number of poor in the world?
Too little growth in some of the poorest countries, rather than too much of the wrong sort of growth.
The HDR focusses too much attention on the _____, rather than the ______.
Residuals, regression line.
