Measures of Economic Development Flashcards
What is the Human Development Index (HDI), and what does it measure?
A measure and rank of countries’ levels of economic and social development.
What are the 3 components of the HDI, and how are each measured?
1) Health: Measured by the life expectancy of the country (average life time in the country).
2) Education: Measured by average and expected years in school.
3) Standard of living: Measured by GNI per capita, using PPP.
What are 3 advantages of using HDI to compare development between nations/over time?
1) The data is easy to collect and standardise between nations.
2) An index can easily track levels of development over time.
3) Provides insight into wellbeing, as well as economic performance.
What are 4 disadvantages of using HDI to compare development between nations/over time?
1) A long life expectancy does not equal a high quality life. E.g. western nations have longer life expectancies, but higher levels of stress and mental illness.
2) Number of years in school is a poor measure of quality of education.
3) HDI does not account for levels of inequality within a nation.
4) Two countries can achieve the same HDI, but have very different profiles.
How is HDI scored/represented, and what are the 4 tiers a country could be placed in?
Through an index number (1-0):
1) 0.8+ : A very high level of human development.
2) 0.7 - 0.79: High levels of human development.
3) 0.5 - 0.69: Medium levels of human development.
4) 0.5> : Low levels of human development.
What country has the highest HDI (2023), and what is their score?
Switzerland - 0.962.
What country has the lowest HDI (2023), and what is their score?
Niger - 0.400.
