Metrics of human development

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1. What does GDP per capita income measure? What are the problems with this kind of a metric?

2. What is the HDI development indicator? Compare the pre- and post -2010 why of calculating the composite index. What are the problems with the old and new composite index? Is the new metric better? Give an example.

3. Looking at excel-sheet (table1), explain why the rank by HDI and GNI can be so different? Would you agree with Ravallion's position that the HDI and GNI are the same indicators?

4. In excel-sheet (table 2) we see changes in the HDI over-time. Comment on the speed of change. In addition comment on the nature of change: "In 1960 the majority of the world's people, 73% were in the ‘low' human development category. In 1992 only 35% were in that category.

Nearly two thirds had shifted to the medium or high category of HDI. But while HDI may be improving, recent research still suggests the number of those living in poverty (under one dollar per day) may have risen!"

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5. Comment on the problems with the HDI metric?

Should it incorporate more variables: environment, food security, political rights or gender?

What problems are created by inadequate and unreliable data?

Aid Conditionality may be attached to the HDI rank. Should it be used?

Reference no: EM13812669

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