L2

Question 1

Define development and three questions that come along with the statement

Answer 1

Enhancement of human well-being
For whom?
Trade-offs?
Which dimensions?

Question 2

Name four ways of defining development

Answer 2

Economic growth
Poverty reduction
Inequality reduction
Basic human needs

Question 3

Development as basic human needs-how is it measured?

Answer 3

Acess to health care
Life expectancy
Health adjusted life expectancy
Child mortality
Education 
Human development index=HDI=combine health education and income

Question 4

Development as economical growth -how is it measured?

Answer 4

Change in GDP (total services and products produced in one year) or GNI (total income of the residents one year) over time
Comparing over time require nominal GDP and real GDP
Comparing across countries require GDP/capita and/or PPP ratio (cost for basket in one currency/cost for basket in another currency)

Question 5

Problem with development as economical growth

Answer 5

Measures only market transactions
Underestimate economic activity (excludes volenteering, household work, improvement on products, shadow economy)
Overestimate improvement (exclude inequality, sustainability of economic growth, trade-offs)

Question 6

Alternative to GDP

Answer 6

Adjusted economic measures that include social and environmental factors (GPI)
Subjective measures of well-being based on surveys (WVS=world value survey=satisfaction or Gross national happiness index that measure content in nine areas)-tricky to compare across societies and cultures
Weighted composite measures of several indicators (Happy planet index)

Question 7

What is Genuie progress indicator? And what is the problem?

Answer 7

Measure sustainable economic welfare
Reduce overestimations and underestimations of welfare
Based on personal consumption expenditures
-cost related to inequality, crime, environmental degradation, loss of leisure
+volunteering, household, parenting etc.
Difficult to collect all the data and doesn’t give policy guidelines

Question 8

Development as poverty reduction-how is it measured?

Answer 8

Absolute poverty or relative poverty
Income or consumption but can also be based on nutrition, basic need, international poverty line
Poverty headcount, poverty ratio or poverty gap ratio (cost to take away all poverty)

Question 9

Pros and cons with using consumption as measurement for poverty

Answer 9

+Consumption creates utility and are closer to well-being
+Easier to measure
+More balanced throughout a humans life than income
-Difficult to see in individual level since it is often done for a whole household
-A lot of errors because of bad memory
-Doesn’t include difference in taste

Question 10

Development as inequality reduction - how is it measured?

Answer 10

Share of income held by top % compared to share of income held by bottom %
Lorenz curve that ranks individuals from poorest to richest
Gini coefficient that measure distance between Lorentz curve and perfect equality line

Question 11

Problem with development was inequality reduction

Answer 11

Focus on money and outcome

Should focus on opportunity that are decided by where you were born, ethnicity, gender etc.