I will advance the thesis that the Human Development Index (HDI) is a better measure of economic performance than the Gross Domestic Product (GDP) per capita. By saying that the HDI is a better system to measure economic performance, I mean that because the HDI highlights the trend between longevity, education and economic growth, it calculates a better analysis of an economy (Costa, Steckel 1997, p. 71). In contrast, the GDP per capita only accounts for the gross domestic product without paying any attention to other factors of an economy (Hawthorn, Sen 1997, p. 60). With this being said, my thesis asserts that the HDI is a better measure for economic performance because it considers significant factors that play large roles in an economy, namely longevity and education; whereas the GDP per capita solely consider the gross domestic product, which is a calculation that is much too narrow to gather an appropriate analysis.
As mentioned above, in an economy there is a trend between longevity, education, and economic growth, which means that this trend is essential in understanding an economy and its performance because these aspects are all interconnected. First, the longevity of people is vital in a prosperous economy because economic growth depends on the health and capability of the people who work and run it (Costa, Steckel 1997, p. 47). For example, the economic performance of an economy is slowed when the health of a large fraction of the population is very poor because then the population is too unhealthy to increase the productivity and output (Costa, Steckel 1994, p. 33). As well, in this context, when the population cares about it’s longevity and welfare, they take further steps to ensuring their wellbeing by spending ad...
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...o the economy, which concludes that the HDI is a better option for measuring economy’s for their economic performance because it is far less exclusive as it considers the vital factors of longevity and education.
Works Cited
Costa, Dora L., and Richard H. Steckel (1997): Long-Term Trends in Health, Welfare, and Economic Growth in the United States, in: Richard H. Steckel and Roderick Floud: Health and Welfare during Industrialization, Chicago, IL: University of Chicago, pp. 47- 89.
Hawthorn, Geoffrey, and Amartya Sen (1994): Lives and Capabilities, in: Hawthorn, Geoffrey, and Amartya Sen: The Standard of Living: The Tanner Lectures, Clare Hall, Cambridge, Cambridge, UK, Cambridge University, pp. 20-38.
Nelson, Richard R., and Edmund S. Phelps (1966) Invest in Humans, Technological Diffusion, and Economic Growth, in: American Economic Review, pp. 69-75.
"Viaggiando manterrà il vostro cuore giovane nella vostra mente forte," was one of the many inspirational quotes told to me by my Italian grandmother. Storytelling was her forte. And it is because of these stories of her life that I developed an obsession for Italy and travel. Full of energy and complete wanderlust, she lived life to the fullest, passing away at 94. I often wonder if her long life had anything to do with growing up in Italy, and whether her lifestyle choices varied significantly from that of American culture. From a business perspective, GDP is an oftentimes used term to describe the government’s spending habits. And as a business major intent on making a positive difference in our society, I can’t help but wonder why Italians have a much longer lifespan, yet spend nearly half of what the United States do on their health care system.
An aging population is indeed a problem for the society and will possibly cause many social and economic difficulties in the future. According to David Foot (2003), professor of Economics at University of Toronto, an effective birth rate of 2.2% against current 1.75% will be necessary to replace the current work force in the near future and the government’s policy of bringing in more immigrants will eventually fail (Foot, 2003, 2). However some people predict that the increased size of an aging population will drive growth in the home, health care, and many other industries resulting in job creation and economic growth (Marketwire, 2013, 1). Majority of the people are of the opinion that the issue will be mainly in the health care and economic activity. As humans age, they start to develop health problems, leading to more visits to a medical clinic putting extra burden on health care system.
Variations in life expectancy and its changes are one major cause of rising income inequality. How long a person lives, as well as their quality of health, can have an important and huge impact on their income and social mobility. The life expectancy of the bottom 10% increases at only half the rate that the life expectancy of the top 10% does (Belsie). This shows that improvements in medicine benefit the wealthy more than the poor. The less wealthy have decreased access to good medical insurance and cannot afford more expensive, quality medical care. The poor are less likely to invest in healthy food and exercise, lowering life expectancy and overall health. These changes result in a cycle that causes the poor to be less healthy, and the less healthy to become increasingly poor. On the other side, the rich have different variations of habits, education, and environments, which can affect life expectancy, often positively for the
“Researchers have found a surprising effect of education: On average, the farther that people go in school, the longer they live. On average, compared with high school drop-outs, those who complete college live at least ten years longer (Kaplan et al. 2014). The most likely reasons for the longer life are that the more educated have healthier lifestyles (better diets, less smoking), better jobs, higher pay, and superior medical services” (Henslin, 2017, p. 505). This excerpt from Henslin’s textbook shows how crucial education can be to a person’s life: without it, they tend to be much unhealthier. This proves how important an influence education is on
During the Industrial Revolution of the Victorian Era, life expectancy was so low due to the lack of sanitation, working conditions, and less medical knowledge that we have now. At the time, the average age people were dying was at 35 years old (Lambert). The age, however, varied depending on where one lived. Normally, people who lived in cities died at a younger age than people who live in rural areas. The class that one was in also greatly impacted a person’s life span. It mainly impacted poor working-class communities, because of the poor conditions that came with being a member of that class (Wilde).
The Human Development Index rates each country with a score between 0 and 1, with 1 being the most advanced, globalized country. Factors that are involved in determining a country's HDI are gross domestic production per capita, life expectancy at birth, adult literacy, and the number of persons enrolled in educational institutions. In 1975, Peru's Human Development Index was 0.643. By 2003, the Human Development Index had risen more than one tenth to 0.762. The substantial increase in Peru's HDI is a clear indication that globalization has made a positive impact.
Standard of Living, in a purely material dimension is the average amount of GDP per person in a country (therefore determining access to goods and services). However the term has a much broader, non-material dimension involving issues of quality of life and are therefore much more difficult to quantify. There is no single measure of SoL, but a range of indicators, which can be used together to give a good idea of a countries’ SoL. Reasons for GDP figures alone giving an incomplete understanding of SoL in a country will be explained in this essay, along with problems faced when comparing levels of development between countries.
Uhlenberg, Peter. 1992. “Population Aging and Social Policy.” Annual Review, Sociology, University of North Carolina, Chapel Hill.
...an HDI of 0.36. These discrepancies in levels of development have led to an exodus of people, from less developed areas to the areas that have been benefitted by development. This situation seems to depict that predicted by the Dependency theory in which the developed countries progressed due to the exploitation of peripheral nations; the same seems to be happening in India. The states that are wealthier are exploiting the poorer states. It would be difficult to imagine India having the economic status that it now has, if it was not for the terrible working conditions and wages at which the Indians are willing to work and the massive work force available in the country. Now that India has seen economic growth the government should start taking care of its citizens by implementing policies that protect the labor rights of the workforce.
Berger, K. S. (2010). Invitation to The Life Span (Second Edition). Unite State of America: Worth Publishers.
In international parlance, development encompasses the need and the means by which to provide better life for people in poor countries and it includes not only economic growth, although that is crucial, but also human development like...
The fact that it has been developed and used by the United Nations is significant. The syll It can be deduced that although social and economic indicators do have their relative merits, they have many weaknesses. Generally, it can be said that economic indicators measures the wealth of the country but gives little indication of the standard of living of the majority of people. The World Bank classifies GNP as an economic indicator of development but stresses that. Classification by income does not necessarily reflect development.
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.
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Pakistan has all the major ingredients necessary to become a developed nation; it has a geo-strategic location, a generous availability of natural resources and a large population in the working age. Despite having the potential to turn itself into a developed country, Pakistan has not been able to fulfill its potential.