Economics: HDI, Unemployment, and Globalization

ECONOMICS
Economics
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ECONOMICS
Table of Contents
Answer 1..........................................................................................................................................2
Answer 2..........................................................................................................................................3
Answer 3..........................................................................................................................................4
References........................................................................................................................................6

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ECONOMICS
Answer 1
Thesis statement: Human Development Index (HDI) produces a good index for tracking well-
being of the economy and the society as a whole.
Critical analysis
HDI is a combined measure of well-include state of education, health and per capita
income. There is separate index for each of these indices and HDI is the weighted average of
these three indices with each having an equal weight. Life expectancy at birth represents state
health. Gross enroll ratio and adult literacy are representative measure of education. For per
capita income gross national income is taken into consideration. The index ranged between 0 and
1. Values closer to 1 represent higher human development while value closer to 0 represent low
levels of human development.
How good is HDI is measuring overall well-being is a matter of debate. There are some
instances where HDI constitutes a good measure of well-being while in others HDI suffers from
significant shortcomings. Health and education are among the basic necessities of life. People in
their lifetime always want to acquire more education and live a long and healthy life. In order to
satisfy these basic necessities people, need a higher average income. Therefore, situations where
human development is measured in terms of achieving success to basic necessities HDI is a good
measure. Most of developed countries despite having far higher average income ranked lower in
in the HDI list. Norway though is far behind than US in terms of aggregate income, the nation
still enjoys a better quality of life in terms of ensuring longer life for its people. Here, HDI ca be
regarded as good indicator as it indicates true picture of development.