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Discuss the Human Development Index (HDI) and Gross National Product (GNP) as measures of levels of economic development. - Leaving Cert Geography - Question 9B - 2018
Question 9B
Discuss the Human Development Index (HDI) and Gross National Product (GNP) as measures of levels of economic development.
Worked Solution & Example Answer:Discuss the Human Development Index (HDI) and Gross National Product (GNP) as measures of levels of economic development. - Leaving Cert Geography - Question 9B - 2018
Step 1
Reference to HDI as measure
Answer
The Human Development Index (HDI) is a composite index that measures a country's average achievements in three basic aspects of human development: health (life expectancy), education (mean years of schooling and expected years of schooling), and standard of living (GNI per capita). It provides a broader perspective of development beyond economic output alone, highlighting the importance of human well-being.
Step 2
Reference to GNP as measure
Answer
Gross National Product (GNP) measures the total economic output that belongs to a country's residents, including the value of goods and services produced by its firms, both domestically and abroad. While GNP reflects the economic performance of a nation, it does not capture the distribution of income among residents or consider factors such as environmental sustainability and social progress.
Step 3
Discussion
Answer
Both HDI and GNP serve as essential tools for assessing economic development, yet they focus on different aspects. GNP emphasizes economic productivity and growth, which can often be skewed by inequality and external investments. Conversely, HDI underscores the value of social progress and individual quality of life, presenting a more holistic view of development.
While GNP can indicate the economic power of a nation, it may not reflect how this wealth translates into improving citizens' lives. In contrast, HDI accounts for factors that enhance well-being and social development, making it a more balanced measure, especially in assessing the efficacy of economic policies.
In summary, relying solely on GNP can provide a misleading picture of development. The integration of HDI offers a more comprehensive assessment, prompting policymakers to focus on both economic growth and human development to achieve sustainable progression.