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Human Development Index, its indicators and evaluation

Ivan Ang

on 7 July 2010

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Transcript of HDI

HDI What is HDI? The Human Development Index(HDI) is an index between 0 and 1 that is used to measure development in a country. A HDI of 0.499 and below is considered as a low developed country, 0.5-0.799 is considered as a medium developed country, and 0.8-1 is considred as a highly developed country. There are three main aspects of HDI: Economic Well-Being Health Education This is measured by: GDP per capita Employment structure Employment opportunities This is the money each person earns on average in a country in a year. Shows the proportion of workforce in three main sectors:
the primary industry - this generates the least income
the secondary industry - generates medium income
the tertiary industry- generates highest income
The availibility of jobs in a country Poverty The minimum amount of money needed to achieve a good standard of living in a country. Xx sdasdasd Zasd z zz zz zz Employment structure, Employment opportunities, GDP per capita and Poverty threshold. x It is the market value of all final goods and services made within the borders of a country in a year. GDP stands for Gross Domestic Product, which determines the money earned by a country in one year. Higher employment opportunities will lead to more people will be able to obtain employment and thus an increase in GDP per capita. The poverty threshold of one country cannot be compared to another as different countries have different levels of poverty A basket of goods deemed necessary to live at the minimum standard of living
A basket of goods is the basic needs of a person or family, such as clothes and food. It can be defined as: An absolute number based on national poverty lines(A minimum sum of money to achieve adequate standard of living). Often, the amount of goods a currency can purchase within two nations varies drastically. Thus, the United Nations (UN) uses the Purchasing Power Parity (PPP) to measure GDP accurately. PPP PPP is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. Life expectancy This is the average number of years a person is expected to live. According to 200 years of data, it is proven that black people have less life expectancy when compared to their white counterparts Infant Mortality Rate This is rate at which the number of babies less than one year of age dies for every 1000 live births. Singapore has the second lowest infant mortality rates in the UN Populations Division Sanitation The ability to properly dispose waste products hygenically. The less a country's sanitation, the less their access to proper sanitation facilities and diseases will spread more easily and vice versa. Access to clean water The percentage of the country's population with access to clean water. In LDCs people have less access to clean water and are more prone to water-borne diseases. Adult Literacy Rate The percentage of people above 14 years old that can read and write. The higher the literacy rate, the higher the GDP of a country. This is because a higher literacy rate will contribute more to the tertiary industry.
Conversely a low literacy rate will result in lower GDP. The PPP is limited to some extent, due to the fact that the value of commodities is not based on quality, just price. It compares prices of several commodities between countries using a set currency. An example is the Big Mac Index. It is an exchange rate based on how much a Big Mac costs in a country. (Eg. US Big Mac = $3, Singapore Big Mac = $5 therefore, US$3 = S$5.) Countries that have attained high levels of literacy do not keep track of their literacy rates. Thus, their rates when measuring HDI are 99.0 %. World map indicating the Human Development Index based on 2007 data, Picture from biojobblog.com picture from incentre.net D Acknowledgements Pictures which are not stated where they are taken from are from wikipedia.org. This was done by Ivan Ang and Lim Zheng Yee
Il Finale
da\d Evaluation The HDI is a 0 to 1 index used by the United Nation Development Programme to measure the level of development in a country.
HDI takes into three aspects: Economic well-being, health, education standards of a countrty. It includes ecnomic indicators such as employment structure, health indicators such as life expectancy and education indicators such as literacy rates. This aspects are chosen because they can be easily measured and compared across countries.
While the HDI is the most widely used indicators to access the level of development in a country, we have to bear in mind that it does not provide an accurate assessment for every country. The HDI is most accurate and it is used to accesss the Developed Countries (DCs). This is because DCs is easier to obtain data needed to calculate the HDI in places where data is unavailable, the final value of HDI may be less reliable. For example, in places where the majority of the economy relies on informal trading such as in a rural area, only estimates can be used to calculate the incomes of the people there. Therefore, the HDI does not provide a completely accurate assessment of the level of development in such places. Also, the HDI fails to take into account the measurement of human rights and freedom.
Therefore, although we think that the HDI is not perfect, it is still the best indicator for development that is available out there. That is why it is one of the most respected development indices. Additional Information is either from the internet or from the Geography text. Picture from randomdude.com We mean, The End.
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