Economics Unit 28: Measuring Economic Development Terms
Terms in this set (12)
Poverty Trap/Poverty Cycles
A poverty trap is any linked combination of barriers to growth and development that forms a cycle, thus self-perpetuating unless the circle can be broken.
Solitary measures that may be used to assess development. They tend to be financial measures, health measures, or education measures.
Single Financial measures (GDP per Capita and GNI per Capita figures) are often used to assess growth and/or development. Another set of single financial measures used are GDP per Capita figures and GDP per Capita figures at Purchasing Power Parity (PPP)
Single Health Measures: Life expectancy at birth and Infant mortality rate
Single Education Measures: Adult literacy rate and Net enrolment ratio in primary education
Combines a number of single indicators with weighting, to give a single, combined figure.
Human Development Index (HDI)
Is a composite statistic of life expectancy, education, and income indices used to rank countries into four tiers of human development.
Other Indicators of Development
There are many different aspects to development other that the three included in HDI
Gender-related Development Index (GDI)
Human Poverty Index (HPI)
The Gender-Related Development Index (GDI)
Looks at the same indicators as the HDI but takes into account the inequalities in these indicators for men and women. Inequality between men and women will result in GDI < HDI.
The Gender Empowerment Measure (GEM)
measures extent of which women are able to actively participate in economic and political life.
The Human Poverty Index (HPI)
Looks at the proportion of people who are deprived of the opportunity to reach a basic level in each area. It is a composite index and looks at indicators that are comparable with indicators in HDI.
The Genuine Progress Indicator (GPI)
Attempts to measure whether a country's growth, which is simply an increase in the output of goods and services, has actually led to an improvement in the welfare of the people.