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The table shows the selected economic data in 2014 for Vietnam and India - Edexcel - A-Level Economics A - Question 5 - 2017 - Paper 2
Question 5
The table shows the selected economic data in 2014 for Vietnam and India. Gross National Income per capita (2011 PPPs) | Country | GNI per capita | HDI value | |-... show full transcript
Worked Solution & Example Answer:The table shows the selected economic data in 2014 for Vietnam and India - Edexcel - A-Level Economics A - Question 5 - 2017 - Paper 2
Step 1
Step 2
With reference to the data provided, explain two limitations of using the HDI to compare levels of development between countries and over time.
Answer
One limitation of using the HDI is that it ignores qualitative factors such as democracy, quality of education, or human rights, which are important for assessing overall development. Another limitation is that HDI does not consider income distribution, meaning it may not accurately reflect disparities within a country's wealth. Using Vietnam's HDI value of 0.666 as a reference illustrates that while the HDI provides a snapshot of development, it can be misleading if income inequality or qualitative aspects are not taken into account.