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The Impact of GDP Per Capita on Human Development Index: A 2008 Perspective

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46 diapositives · 634 Views · Aug 28, 2014

This analysis, dated January 18, 2008, examines the relationship between GDP per capita, life expectancy, literacy rates, and school enrollment as determinants of the Human Development Index (HDI). It highlights that while GDP per capita has a significant influence on HDI, it does not solely determine a country's development status. The discussion also touches on income inequality measured by the Gini Index and questions the environmental responsibility of traditional GDP metrics. Insights from the Human Development Report 2007/2008 and the World Development Indicators are critically reviewed.

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  1. Human Development Index 18 Jan 2008 R. Shanthini

  2. GDP per capita 18 Jan 2008 R. Shanthini

  3. GDP per capita • Life Expectancy 18 Jan 2008 R. Shanthini

  4. GDP per capita • Life Expectancy • Literacy Rate • School Enrollment 18 Jan 2008 R. Shanthini

  5. GDP per capita • Life Expectancy • Literacy Rate • School Enrollment 1/3 1/3 1/3 Human Development Index 18 Jan 2008 R. Shanthini

  6. 18 Jan 2008 R. Shanthini

  7. 18 Jan 2008 R. Shanthini

  8. 18 Jan 2008 R. Shanthini

  9. United States is a very developed country! • United States is more developed than Singapore! • Sri Lanka has to develop like Singapore (at least)! - based on GDP per capita 18 Jan 2008 R. Shanthini

  10. Sources: Human Development Report 2007/2008; World Development Indicators Online 2008 18 Jan 2008 R. Shanthini

  11. Sources: Human Development Report 2007/2008; World Development Indicators Online 2008 18 Jan 2008 R. Shanthini

  12. Sources: Human Development Report 2007/2008; World Development Indicators Online 2008 18 Jan 2008 R. Shanthini

  13. Sources: Human Development Report 2007/2008; World Development Indicators Online 2008 18 Jan 2008 R. Shanthini

  14. Source: Human Development Report 2007/2008 18 Jan 2008 R. Shanthini

  15. Source: Human Development Report 2007/2008 18 Jan 2008 R. Shanthini

  16. Source: Human Development Report 2007/2008 18 Jan 2008 R. Shanthini

  17. Source: Human Development Report 2007/2008 18 Jan 2008 R. Shanthini

  18. Source: Human Development Report 2007/2008 18 Jan 2008 R. Shanthini

  19. Source: Human Development Report 2007/2008 18 Jan 2008 R. Shanthini

  20. Source: Human Development Report 2007/2008 18 Jan 2008 R. Shanthini

  21. Source: Human Development Report 2007/2008 18 Jan 2008 R. Shanthini

  22. GDP per capita has a strong influence on the HDI. 18 Jan 2008 R. Shanthini

  23. How important is GDP per capita in Human Development? 18 Jan 2008 R. Shanthini

  24. from 1977 to 2005 Source: World Development Indicators Online 2008 18 Jan 2008 R. Shanthini

  25. from 1970 to 1999 (not updated)

  26. from 1960 to 1995 (not updated)

  27. It seems that GDP per capita plays only a marginal role in Human Development? 18 Jan 2008 R. Shanthini

  28. But, GDP per capita growth is important for people to live comfortably! Is that true? 18 Jan 2008 R. Shanthini

  29. Let us take a look at the GINI Index, which is a measure of unequal distribution of wealth • Gini Index of 100 means absolute inequality • Gini Index of zero means absolute equality 18 Jan 2008 R. Shanthini

  30. Gini Index must be close to 0 for equal distribution of wealth Source: Human Development Report 2007/2008 18 Jan 2008 R. Shanthini

  31. Gini Index must be close to 0 for equal distribution of wealth Source: Human Development Report 2007/2008 18 Jan 2008 R. Shanthini

  32. Socially responsible GDP per capita index GDPI_GI= GDPI*IEQI where ln(GiniIndex) - ln(20) IEQI = 1 - ln(100) - ln(20) and ln(GDPper capita) - ln(100) GDPI = ln(40000) - ln(100) 18 Jan 2008 R. Shanthini

  33. Socially responsible GDP per capita • Life Expectancy • Literacy Rate • School Enrollment 1/3 1/3 1/3 Socially Responsible Human Development Index 18 Jan 2008 R. Shanthini

  34. Is the GDP per capita-dependent Human Development environmentally responsible? No, it is not. 18 Jan 2008 R. Shanthini

  35. from 1975 to 2003 Source: World Development Indicators Online 2008 18 Jan 2008 R. Shanthini

  36. from 1975 to 2003 Source: World Development Indicators Online 2008 18 Jan 2008 R. Shanthini

  37. Global CO2 emissions from the burning of fossil fuels & the manufacture of cement (Unit: 109 kg) Source: http://cdiac.ornl.gov/trends/trends.htm 18 Jan 2008 R. Shanthini

  38. courtesy NASA Earth Science Enterprise Source: http://www.visionlearning.com/library/module_viewer2.php?mid=95&l=&let1=Ear 11 Jan 2008 R. Shanthini

  39. CO2 concentration in the atmosphere 383.7 (Unit: ppmv) Source: http://cdiac.ornl.gov/trends/trends.htm 11 Jan 2008 R. Shanthini

  40. Environmentally Responsible Index ERI= CEFI*ECRI where ln(30) - ln(CO2pc) CO2I = ln(30) - ln(0.1) and ln(30000) - ln(Elecpc) ElecI = ln(30000) - ln(10) 11 Jan 2008 R. Shanthini

  41. Socially responsible GDP per capita • Life Expectancy • Literacy Rate • School Enrollment • Environmental Responsibility 1/4 1/4 1/4 1/4 Responsible Human Development Index 11 Jan 2008 R. Shanthini

  42. The modified HDI is a good index? No, it is not. 18 Jan 2008 R. Shanthini

  43. Life Expectancy - 25 Life Index = 85 - 25 Education Index = 2 Adult Literacy 2 Enrollment + 3 100 3 100 The biggest problem with HDI is how the indices are defined. 18 Jan 2008 R. Shanthini

  44. GDPI_GI= GDPI*IEQI ln(GDP per capita) - ln(100) GDP Index = ln(40000) - ln(100) ln(Gini Index) - ln(20) IEQI = 1 - ln(100) - ln(20) Socially responsible GDP index 18 Jan 2008 R. Shanthini

  45. Environmentally Responsible Index ERI= CEFI*ECRI where ln(30) - ln(CO2pc) CO2I = ln(30) - ln(0.1) and ln(30000) - ln(Elecpc) ElecI = ln(30000) - ln(10) 11 Jan 2008 R. Shanthini

  46. What is the problem? sustainable No limit is placed on GDP per capita, CO2 emissions and Electricity consumption 18 Jan 2008 R. Shanthini