Economic Development Measure

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Introduction: Defining Economic Development is controversial, since we usually think in terms of underdevelopment rather than development when measuring the least developed countries. According to the textbook The Geography of the World Economy, “the term ‘development’ implies a trajectory of improvement in relative and absolute terms” (p 23). However, if we look at leading economists, nongovernmental organizations, scholars, and world leaders the term has been considered to include social well-being. Most of the Economic Development Measures only focus on how the economy is going in a country. They don’t extend to measuring the effects of people’s lives within that community. If we look at this term through a broader lens, we can begin to…show more content…
In order to measure human development we need to look at the well-being of a society. Therefore, the HDI includes three main dimensions: a population’s overall health, education attainment and standard of living (Keenan). Along with these three main dimensions, the HDI includes basic indicators to be able to measure the economic development of a specific country. This index focuses on: life expectancy at birth, which is uses to measure the knowledge and longevity; a measurement of education within the communities and finally, GDP per capita at purchasing power parity (PPP). To better understand why the HDI is the best model for ‘economic development,’ lets expand on it and define it in this paper as the process in which the principal objective is to improve the quality of people’s lives. The HDI model is about enlarging the freedoms and opportunities of the members of each community. This concept was created due to the fact that the commonly used measure, GDP, had failed to address the measure of well-being. Therefore, the HDI was created to capture the capabilities of human development. This index goes beyond just the measurement of income, and it includes as well an education and health index in its final calculations for each country. The three main building blocks of well-being and opportunity can be agreed upon by most to be a long…show more content…
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