Parameters of Development

Parameters of Development

Two most important indicators of economic development.

1. Per Capita Income
2. Human Development Index

What is per capita income?

1. It is a traditional way to measure economic development.
2. Increase in per capita income over a long period of time means it is an index of development.

What is Human Development?

Human development is the process of widening people's choices as well as raising the level of well-being achieved.

Human development is concerned with widening not merely income choices but covering all aspects of human development i.e.; income, social, cultural or political.

Human development is universal in nature.

Construction of Human development index

The three basic dimensions of Human development are:

1. A long and healthy life
2. To acquire knowledge
3. To have a decent standard of living

Indicators of HDI

Three indicators of HDI are:

1. Life Expectancy Index (LEI)
2. Education Attainment Index (EAI)
3. Adjusted Gross Domestic Product Index (AGDPI)

Merits of HDI

1. Combines Economic and Social indicators.
2. Comprehensive measure of development.
3. Increases the understanding of development.
4. Focuses on the ultimate objective of development.

Open Ended

State two most important indicators of economic development.

Open Ended

Name the traditional method used to measure economic development.

Open Ended

Name the three basic dimensions of HDI.

Open Ended

How is long and healthy life measured?

Open Ended

What are the two variables of ability to acquire knowledge?

Open Ended

What are the three indicators of HDI?

Open Ended

Give any two merits of HDI.