Transcript 4.3.1 Measure of development student versionx

Emerging and developing economies:
measures of development
4.3.1 Unit content
Students should be able to:
• Define the three dimensions of the Human
Development Index, HDI, (education, health and living
standards) and explain how they are measured and
combined
• Assess the advantages and limitations of HDI in
making comparisons between countries and over time
• Interpret and use other measures of development such
as the % of adult males working in agriculture
Macroeconomic measurements recap from 2.1.1
The main methods of measuring national economic
performance are
Bobby Kennedy and GDP (1968): take notes
HDI definition
The United Nations calculates a measure of economic
development called the Human Development Index.
This is based on three indicators of development:
1.
Longevity
2.
Education
3.
Income
It uses these to create an overall score between 0
(low) and 1 (high), the higher the value the
__________ the level of development.
Longevity, education and income
Longevity refers to average _____________________
So this measure is a measure of the health of the
population.
Education attainment looks at ___________ years of
schooling for an adult aged __ and expected years of
schooling for a _________________ child
Income Index refers to the standard of ________ as
measured by real ___ per capita at purchasing power
parities. So this measure is looking at living standards.
GDP, GNI and GNP recap from 2.1.1
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What is gross domestic product (GDP)?
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GDP does not include earnings by its ________ while
__________ of the country.
Gross National Income (GNI) is GDP plus income paid
into the country by other _________ for such things as
interest and dividends.
Gross National Product (GNP) is GDP plus income
that residents have received from_________, minus
________ claimed by non-residents.
abroad, countries, income, outside, residents
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HDI examples
Limitations of using HDI to compare countries
Advantages of using HDI to compare
countries
Other measures: the inequality-adjusted HDI (IHDI)
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Introduced in 2010
IHDI is HDI adjusted for ___________ in the
distribution of achievements in each dimension of the
HDI (health, education and __________)
IHDI = HDI value when there is _____ inequality
But IHDI < HDI value as inequality ______
The difference between the HDI and the IHDI
represents the ‘loss’ in potential _________
development due to inequality and can be expressed
as a percentage.
human, income, inequalities, no, rises
Other measures: the multi-dimensional poverty index (MPI)
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This identifies deprivations across the three HDI
dimensions (health, __________ and standard of
living).
It shows the __________ of people who are multidimensionally _______ (suffering deprivations in 33%
of _________ indicators) and the number of
deprivations with which poor households typically
contend.
It can be deconstructed by_______, ethnicity and
other groupings as well as by dimension, making it a
useful tool for policymakers.
education, number, poor, region, weighted
Other measures to compare countries
Why might a measure such as the % working in
agriculture be useful?