1. Measuring Inequality Between Countries

2. 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

3. 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

4. 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

5. 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

6. 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?

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

8. HDI
Features?

9. GDP p.c.
Features?

10. Usefulness?
HDI:
GDP p.c.:

11. Reason?

12. 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.

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

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

15. 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.