Human Development Index
Questions:
Read the United Nation Development Programme's
discussion of the Human Development Index.
- What are the advantages of using a measure such as the Human Development Index to compare
economic wellbeing across countries?
- Why might there be some problems is using per capita GDP as a way of comparing economic
wellbeing in different countries? As part of your answer, consider the effect of differences
in:
- household production
- pollution
- crime
- leisure time
- income distribution
- While the Human Development Index may be a reasonable measure to compare wellbeing in
different countries, would it be a very useful guide to policymakers conducting fiscal and
monetary policy in a given economy? Why are most government policymakers more concerned
with GDP?
