Measuring Inequality Between Countries

Terms GDP GDP per capita The value of all goods and services produced in a country per year GDP per capita GDP divided by the population equals the money value of goods and services produced in a country per person

Limitations as a Measure of Quality of Life Don’t show the standard of living Countries producing expensive goods have a high GDP and those with cheaper goods have a low GDP but may not reflect real quality of life Doesn’t show how the wealth is shared – two nations Subsistence farmers not included but may be well fed

Human Development Index Considered to be a better indicator of quality of life because it includes: Income as measured by GDP per capita Life expectancy Literacy and education levels Longer life expectancy means better diet, housing and access to health care Higher levels of literacy mean better participation in the work force and the community

Use of HDI to Determine Quality of Life Used by governments to target areas of need eg health, education, job creation Used by NGOs to develop programs to increase quality of life in chosen countries

Discuss the usefulness of GDP per capita statistics and the HDI Discuss the usefulness of GDP per capita statistics and the HDI. Why has the HDI largely replaced GDP per capita as a measure of a country’s level of development?

Plan Your Answer GDP p.c. HDI Usefulness? Usefulness? reason

HDI Features?

GDP p.c. Features?

Usefulness? HDI: GDP p.c.:

Reason?

Writing GDP per capita and HDI are both . . . . GDP per capita is . . . HDI is . . . (adverbial phrase) the HDI has begun to replace the GDP per capita statistics as a (adjective) measure of a country’s level of development. There are several reasons for this.

Develop several sentences that outline the features of GDP pc Outline the limitations

Develop several sentences that outline the features of HDI Outline the advantages of these features over the GDP pc

Because . . . . . , the HDI is a more useful tool for determining a country’s level of development. This information enables governments and NGOs to establish with greater accuracy the quality of life of the people, thus enabling them to target programs to support areas of need.