Measures Of Development

Question 1

Single indicators of development

Answer 1

1. GDP per Capita - the average income per person in an economy, GDP doesn’t tell us about equality and is quite one dimensional. Rising popularity of GI - the total income generated by a country’s factors of production (no matter where they may work). We also want to look at the PPP to look at how far the money can actually go (usually done in dollars)
2. Health measures - perhaps life expectancy and infant mortality. If these are improving then it is likely development is increasing (better hospitals, education, infrastructure, more stable government)
3. Education measures - adult literacy, enrollment in primary education - if education increases then likely development is increasing - more skilled workers etc.

Question 2

Human development index

Answer 2

Human Development Index:
• It is the main way that development is measured
• Aims to include as many important factors of development in one index
The factors are longevity, knowledge and standard of living
• Longevity = the life expectancy at birth
• Knowledge = adult literacy and school enrollment
• Standard of living = GDP/capita PPP
• Index between 0-1, 0 is low development, 1 is high development (uk around 0.93)

Question 3

Pros of HDI

Answer 3

Pros of HDI:
• Broad - it includes majority of the single indicators (especially GDP/capita)
• Focus on development outcomes
• Allows progress to be measured over time - compare against own country and others
• Allows global organisations to focus on low development countries - provide aid

Question 4

Cons of HDI

Answer 4

Cons of HDI:
• No mention of income distribution - equality
•Perhaps factors shouldn’t be weighted equally - GDP/capita may be more important for
certain countries
• Freedom and choice is not measured in HDI
• No inclusion of crime, corruption, poverty, negative externalities etc