Unit 4: Measuring Development Flashcards
What are the Measurements of Economic Development?
GDP / GDP per capita HDI IHDI MPI Other Indicators
How does GDP / GDP per capita show Economic Development?
GDP / GDP per capita shows the average income per person in a country
Why is GDP not the best measure of economic development?
It doesn’t take other factors into account
(factors include health, pollution, education, happiness, etc)
It is a strictly monetary figure; whereas development isn’t.
What does HDI stand for?
Human Development Index
What does the HDI do, and how does it measure Economic Development?
The HDI ranks countries in terms of social & economic development
It’s split into 3 equally weighted sections:
- Health (measured by life expectancy)
- Education (measured by average/expected years in school)
- Standard of Living (measured by GNI per capita)
What are the Rankings (2015) for HDI?
1st: Norway
2nd: Australia
3rd: Switzerland
8th: USA
14th: UK
What Criticism has surrounded HDI as a Measure of economic development?
Education - HDI doesn’t consider the quality of the schools/ education system
GNI per capita - may be tempered with (via the hidden economy, etc); doesn’t consider inequality
Life Expectancy - doesn’t consider/represent happiness
What Evaluation points surround HDI as a Measure of economic development?
The HDI excludes many aspects of economic + social life regarded to constraint development
(e.g. crime, corruption, negative externalities)
Critics argue that the equal weighting between the 3 main components is “rather arbitrary”
What does IHDI stand for?
Inequality-Adjusted Human Development Index
When was the IHDI introduced?
2010
What is the IHDI?
HDI which is adjusted for inequalities in the distribution of achievements in each of the 3 components
What is the Relationship between HDI and IHDI?
The HDI will be equal to the HDI if there is no inequality. It falls below HDI as inequality increases.
The difference between HDI + IHDI shows the ‘loss’ in potential human development.
What does the MPI stand for?
Multi-dimensional Poverty Index
When was the MPI first published?
2010
What does the MPI do?
Reports + complements money-based measures, by considering multiple deprivations and their overlap.
It takes into account the many factors that may make up a poor person’s experience of deprivation - such as poor health, lack of education, lack of income, threat from violence, etc.
It shows the number of people who are multi-dimensionally poor, and the number of deprivations which poor household contend.
It highlights the complexity of poverty.
