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HDI - what is it and how do we measure it?
it is used to compare the level of social and economic development in different countries.
To calculate the countries position in the index it uses the following categories:
Health
Life expectancy at birth
Education
Expected years of schooling for children
Mean years of schooling for adults
Economic
GNI per capita
GNI is an indicative of the standard of living of the avrg citizen.
Generally, high GNI = higher life expectancy, more literate, better access to safe water and experience lower rates of infant mortality
Why is HDI a food measure of development? What are the issues with measuring development this way?
Allows for comparison between countries over time
Provides a more holistic view of progress as it also considers individual’s wellbeing and quality life rather than solely focusing on economic indicators like GDP.
All three indicators are equally weighted, and given the same importance, but what is important in one country might not be important in another
Figures only averages and do not consider regional differences in a country, like economic disparities (income inequality).
Limited factors that might affect people like corruption, freedom, environmental sustainability or gender equality
Gross national income (GNI)
The total value of goods and services made by the country in one year (including profits made in foreign countries)
Gross domestic product (GDP)
The total value of goods and services produced by a country in one year
Infant mortality
Child mortality
Standard of living
Number of deaths of children under the age of 1
Number of deaths of children between brith and 5 years
The amount of wealth and material comfort available to a person or community
HDI range + when is it considered a low, medium or high HDI country?
Ranges from 0-1
Low = less than 0.550
Medium = 0.550 - 0.699
High = 0.700 - 0.799
Very high = 0.800 and above
What is the link between democracy and development? Are there any exceptions?
Generally, the more democratic a country is, the more developed it is.
There are exceptions:
Autocracies but are developed (high HDI): Saudi Arabia (petrol and oil reserves), the UAE (oil and gas), Brunei (oil and gas), Qatar are (gas).
China (high HDI): not very democratic (authoritarian) but developed and continues developing = global trade and investment in technology drives growth
India (medium HDI): pretty democratic but quite underdeveloped.
Case study: Mali low HDI (impact of diff political systems in communities and individuals)
Hybrid democracy: authoritarian and democratic features
President has a lot of power + elections are still reasonably free
Weak institutions because of concentration of power in the executive branch of government and its lack of accountability to both citizens and other branches of government.
Corruption high = negatively affects the economy by impeding the growth of the private sector and the activities of entrepreneurs.
Literacy rate ~35%
People can’t read → citizens can’t make informed decisions and vote “fairly”
may vote based on other things (e.g ethnic ties) rather than issues
be easily manipulated (corruption high in Mali)
Result: Leaders aren’t held accountable, so policies may ignore public needs (e.g., rural poverty).
Poverty high (worse in rural areas, ~90% of them live under the poverty line)
Can’t invest in education, healthcare, etc
Low literacy → Few skilled workers → Weak economy → Less tax revenue for public services (e.g., schools, clean water).
Poor health → less children able to go to school
Poverty → high drop out rates (early marriage or to work)
Result: persistent poverty limits access and continues poverty cycle = reinforcing low HDI
Periods of droughts and floods = wash away crops and homes → worse living conditions
Poor basic services and high mortality
Tot 20 million, 12 million don’t have access to adequate sanitation & 4 million no safe drinking water
Waterborne (communicable) diseases (cholera and hepatitis) + high infant mortality
Loss of human capita
Study case: Egypt medium HDI (impact of diff political systems in communities and individuals)
Hybrid regime
Case study: Denmark high HDI (impact of diff political systems in communities and individuals)
Constitutional monarchy + full democracy
High voter turnout (80-90%) indicates citizen’s engagement (they care) = demonstrators that policies addresses public needs
Shows government accountability
Strong welfare system = good quality of life
High taxation (45% average income tax) funds services shows a collective commitment to improve social overall quality of life for all.
Spends approx 5.5% of its GDP on education and ~10% on healthcare = not just free also ensure quality
Free healthcare: increased life expectancy + healthy means can attend school means more skilled & productive workforce
Free education (ages 6-16 free and compulsory): literacy rates ~99%
ages 16-19 free, not compulsory. Free uni for Denmark and EU
Reduced inequalities + educated people employed easily (even more if higher education) + fuels innovation