Measuring Development

Question 1

What are the two main types of development measures?

Answer 1

• Single measures: Focus on one aspect (e.g., GDP, life expectancy).
• Composite indices: Combine multiple indicators (e.g., HDI, GII).

Question 2

What is GDP, and what are its limitations?

Answer 2

• Gross Domestic Product (GDP) measures the total value of goods and services produced in a year.
• Limitations:
• Does not show income inequality.
• Does not indicate how money is spent (e.g., military vs. healthcare).
• Countries may have high GDP but poor living conditions.

Question 3

What is life expectancy, and how does it differ from GDP rankings?

Answer 3

• Life expectancy measures average years a person is expected to live.

Example: Japan (84.2 years) ranks highest, but the USA (78.5 years) ranks lower despite high GDP.

Question 4

What is the Human Development Index (HDI)?

Answer 4

• A composite index measuring:
1. Life expectancy (healthcare quality).
2. Education levels (expected and mean years of schooling).
3. Gross National Income (GNI) per capita (economic strength).

Norway (0.94), Australia, and Switzerland ranked highest in 2015.

Question 5

What is the Environmental Quality Index (EQI)?

Answer 5

• A measure combining environmental factors like air pollution to assess quality of life.

Question 6

What is the Gini Coefficient, and how does it measure inequality?

Answer 6

• 0 = perfect equality (everyone has the same wealth).
• 1 = perfect inequality (one person owns all wealth).

Examples:
• South Africa (0.62 in 2017) = very unequal.
• Iceland (0.25 in 2017) = one of the most equal countries.

Question 7

What does the World Inequality Report (2018) say about wealth distribution?

Answer 7

• In the USA, the top 1% owned 11% of income in 1980 → increased to 20% in 2014.
• In the UK, London is the most unequal city, while Sunderland is the most equal.

Question 8

How does globalisation contribute to inequality?

Answer 8

• TNCs and the wealthy benefit the most, while poorer workers earn low wages.
• The richest 1% control disproportionate wealth (“We are the 99%” – Occupy movement).

Example: Alisher Usmanov (Russian billionaire) was the UK’s richest person in 2013, worth £13.3bn.