Essay about International Comparisons Between The And The Welfare Of People

Essay about International Comparisons Between The And The Welfare Of People

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GDP is internationally comparable and used universally by all countries regardless of output levels. International comparisons allow countries to compete in the global market and also help states create policies to improve education, health and overall improve welfare. The NHS is seen as a success to help improve health in the UK, many countries have attempted to copy the NHS’s key ideas to renovate their health service to improve welfare. (The Economist, 2014) Without comparisons, countries have no position to equate countries on how they can improve therefore leaving a cycle where countries aren’t productive and create no new national income. Whilst GDP is measured internationally, it doesn’t include non-market activities that occur within a country’s economy. This includes volunteering and housework that have positive externalities on the economy and the welfare of people. An example of this is a homemaker who stays at home to raise children has an optimistic effect on the economy and improves the standard of living of the children. This isn’t included in the calculations of GDP as there is neither market transaction nor a price. These activities do help improve welfare, but aren’t considered in the calculations for GDP as no income is produce.

Furthermore, the levels of high economic growth is often linked with an increase in welfare through the access of health care and education. (Sen, 1999) implies that growth though GDP helps increase the income per capita and disposable income to allow more opportunities for creative and healthy lifestyles. The rise in income creates a multiplier effect in the circular flow of income and as the strong economic growth increases consumption that then improves the countries tax revenue mak...

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...992) it is often scrutinised that the sections of HDI is restricted to only the social and economic side of development but rejects the political matters. For example, the occupation of the Taliban in Afghanistan, they have caused female literacy rates to drop to a low percentage of 24.2% compared to 57.3%. (, 2016)
This gives Afghanistan a low rating of HDI but doesn’t take account for the turmoil occurring, it just shows that Afghanistan is not successful in achieving welfare. Although some argue HDI enhances political competition between states and encourages economic performance. (Dash and Mukherjee, 2014) A case by Dash and Mukherjee (2014) suggests that political states perform well in order to achieve a higher HDI ranking. This study insinuates rural villages in India that a higher HDI score helps increase public spending to improve welfare

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