Free Essay

Gdp vs Hdi

In: Business and Management

Submitted By gabesdefig
Words 446
Pages 2
GDP VS HDI
The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis.

HDI: The Human Development Index (HDI) is a statistical tool used to measure a country's overall achievement in its social and economic dimensions.

UK currently 14 on the HDI, were 9th in Europe
UKs GDP position is 6th
China are 91st on the HDI and GDP is 2nd "Although the economy in China is very large, the income of Chinese people is still much lower than in many developed countries," "and I think environmental pollution also affected China's ranking on the list."

Countries high on the Human Development Index tend to have annual population growth rates of 1 percent or less, high urban population percentages (65 percent and up) and balanced percentages of people under 15 and over 65 years of age. Those low on the index tend to have annual population growth rates of 1.5 percent or higher, less than 35 percent of the population in urban areas, and an under-15 population that greatly outnumbers those above 65 years (in most cases, more than 10 times as many.)

There is today a very strong correlation between rising GDP/capita. If you exclude 6 countries on the right side of the strong correlation that have higher GDP/capita than HDI due to oil or diamonds; and if you exclude 6 former Soviet Republics with collapsed economy but still high literacy rate on the left side of the correlation; you will find that the GDP/capita and the value on Human Development Index follow each other very closely from the worst-off country Congo to the best-off country Norway

Nations today are surprisingly capable in converting the available national income (measured as GDP/capita) into a longer lifespan for the people (measured as Life expectancy at birth) and into access to education (measured by mean of years of schooling for adults aged 25 years and expected years of schooling for children of school entering age). But the reason may also be that nations today are very good at converting improved health and education into economic growth. Most probably the causality goes in both directions.

Reasons for the good GDP in the UK
Services is the biggest sector of the economy and accounts for more than 75 percent of total GDP. The key segments within Services are Distribution, Transport, Hotels and Restaurants (18 percent of total GDP), Government, Health and Education (20 percent); Professional and Support (11 percent); Financial and Insurance (9 percent) and Real Estate (9 percent).
Gdp growth currently 0.7percent

Similar Documents

Premium Essay

Gdp vs. Hdi- the Adequate Measure of Societal Well - Being.

...GDP vs. HDI- the adequate measure of societal well-being Introduction “We need a new economic paradigm that recognizes the parity between the three pillars of sustainable development. Social, economic and environmental well-being are indivisible. Together they define gross global happiness,” said the Secretary-General Ban Ki-moon in the high-level meeting – “Happiness and Well-being: Defining a New Economic Paradigm” at UN Headquarters in New York on the 2sd, April, 2012. These words remind us of the fact that not just economic well-being but social well-being (as much as enviromental well-being) is also an essential factor in rating a nation’s happiness, as well as that of a man. Therefore, the important thing to do now is to find a way to measure social well–being, and should that be Gross Domestic Product (as some country has done)? However, in actual fact, there are people who believe that GDP is inadequate and it should be replaced by the Human Development Index (HDI). We find this opinion very convincing. The United States Institue of Peace (USIP) defined “social well-being” as “an end state in which basic human needs are met and people are able to coexist peacefully in communities with opportunities for advancement.” But what is an “end state”? And we can base on which factors to evaluate it? To answer these questions, the USIP also pointed out the 4 neccesery conditions to achive this “end state”, which were: Access To and Delivery of Basic Needs Services,......

Words: 1767 - Pages: 8

Free Essay

Gdp & Hdi

...Assignment On Relationship between GDP & HDI Submitted ToCourse Instructor Of B-University of DhakaDepartment of Banking | Submitted ByMd. Yasir ArafatId No. 62B.B.A 13th BatchDepartment of BankingUniversity of Dhaka | Date of Submission08.o7.09 | Introduction to GDP A region's gross domestic product, or GDP, is one of the ways of measuring the size of its economy. The GDP of a country is defined as the total market value of all final goods and services produced within a country in a given period of time (usually a calendar year). It is also considered the sum of value added at every stage of production (the intermediate stages) of all final goods and services produced within a country in a given period of time. Components of GDP Each of the variables C (Consumption), I (Investment), G (Government spending) and X − M (Net Exports) (where GDP = C + I + G + (X − M) as above) C (Consumption) is private consumption in the economy. This includes most personal expenditures of households such as food, rent, medical expenses and so on but does not include new housing. I (Investment) is defined as investments by business or households in capital. Examples of investment by a business include construction of a new mine, purchase of software, or purchase of machinery and equipment for a factory. Spending by households (not government) on new houses is also included in Investment. In contrast to its colloquial meaning, 'Investment' in GDP does not mean......

Words: 4174 - Pages: 17

Premium Essay

Caselet

...Group Activity- Caselet 2 Group 7 1. The Philippines is No. 83 on HDI ranking last 2003, No.112 last 2011 and No. 114 as reported by UNDP for 2013. Account on the reasons for such changes. Compare the following factors; a. life expectancy b. literacy c. average GDP Despite gains it has made on the economic front, the Philippines remained at 114th globally for the 5th straight year in the Human Development Index (HDI) released by the United Nations Development Program (UNDP) on Friday, March 15. The HDI is a key indicator of citizens' state of health, education, and income, among others. In the 2013 Human Development Report titled "The Rise of the South: Human Progress in a Diverse World," the UNDP said the Philippines' HDI score has been improving in the past 30 years. But its score -- 0.654 -- is still slightly below the East Asia and the Pacific regional average of 0.683. (A total of 186 countries were covered by the UNDP study.) Some data on the Philippines from the 2013 HDR include the following: * The life expectancy of Filipinos is 69 years old. * The mean years of schooling in the Philippines is 8.9 years while the expected years of schooling is 11.7 years. * The country's Gross National Income per capita level is $3,752 (computed using 2005 purchasing power parity) * The country ranked 77th overall in the Gender Inequality Index, the third lowest rank in the ASEAN. * Around 18.4% of the population lived below $1.25 in the......

Words: 2343 - Pages: 10

Free Essay

Human Develoment Index

...HUMAN DEVELOPMENT INDEX (HDI) What is the human development index (HDI)? The HDI—human development index—is a summary composite index that measures a country's average achievements in three basic aspects of human development: longevity, knowledge, and a decent standard of living. Longevity is measured by life expectancy at birth; knowledge is measured by a combination of the adult literacy rate and the combined primary, secondary, and tertiary gross enrolment ratio; and standard of living by GDP per capita (PPP US$). For details on how to calculate the HDI, see pages 340–1 Technical Note 1. What is the gender-related development index (GDI)? The GDI—gender-related development index—is a composite indicator that measures the average achievement of a population in the same dimensions as the HDI while adjusting for gender inequalities in the level of achievement in the three basic aspects of human development. It uses the same variables as the HDI, disaggregated by gender. For details on how to calculate the GDI see pages 340, 343-344 and 346 Technical Note 1. What is the gender empowerment measure (GEM)? The GEM— gender empowerment measure—is a composite indicator that captures gender inequality in three key areas: • political participation and decision-making, as measured by women’s and men’s percentage shares of parliamentary seats; • economic participation and decision-making power, as measured by two indicators—women’s and men’s percentage shares of positions as......

Words: 952 - Pages: 4

Premium Essay

Finance and Development

...Executive Summary Thailand is a newly industrialized and export dependent country. Although it is developing country its economic growth rate is sustaining over the long period of time. It is middle income country in the south-east Asia. In 1988 the GDP growth rate was 12%.Then there was economic boom in the country. The purpose of paper is to assess is to find out the economic condition of Thailand and its economic performance regarding different policies. The economic growth of Thailand is better than any other developing country. Over the ten years between 1987 and 1996, the average annual GDP growth rate was 9.4 percent; the growth rate of real exports was 14.5 per cent, while inflation was contained at 4.7 per cent. The high level of investment and the rapid growth had been supported by large inflows of foreign capital: in the period 1987–96, annual capital inflows were on average equal to 8.7 per cent of GDP. But there are some financial shocks in the economy. They are Asian financial crisis:1997-1998, Global financial crisis and flood of 2011and political instability of Thailand. These crises were recovered successfully. On 11 August 1997, the IMF unveiled a rescue package for Thailand with more than $17 billion, subject to conditions such as passing laws relating to bankruptcy (reorganizing and restructuring) procedures and establishing strong regulation frameworks for banks and other financial institutions. The IMF approved on 20 August 1997, another bailout package......

Words: 5177 - Pages: 21

Free Essay

Cage Analysis

...CULTURAL DISTANCE | KENYA | UGANDA | NIGERIA | Diversity | 13 ethnic groups and 27 sub groups. | 3 Major Etnic Tribes: Baganda, Basoga and Bagisu. | 3 Major Ethnic Tribes: Yoruba, Hausa-Fulani and Igbo | Language, Religion, Ethnicity | The Most Spoken Languages are English and Swahili. | The Most Spoken Languages are English, Swahili and Arabic. | Over 250 languages. English is the official language | Gender | 1.02 Males/Female | 1.03 Males/Females | 1.031 Males/Females | Inequality (GINI) | 47.7 % | 44.3% | 42.9% | Individualism | Collectivist Society | Collectivist Society | Collectivist Society | Quality of Life (Interpersonal Relationship Vs Material Aspect) | Interpersonal Relationship are Valued. Influence of “Ubuntu” | Interpersonal Relationship are Valued. Influence of “Ubuntu” | Interpersonal Relationship are Valued. Influence of “Ubuntu”.Concept of extended family.“Male egotism “ | Long Term or Short term orientation | Long Term Orientation | Long Term Orientation | Long Term Orientation | Asian Paints should take into account the diversity of Kenya & Uganda while selling different shades of its products. The major implication will be in the marketing communication where language has to be kept in mind. Packaging & designing the product has to be as per the ethnic color preferences. Since interpersonal relationships are family time is valued – Asian paints should push more pastel shades in the market. Long term orientation implies that......

Words: 1248 - Pages: 5

Free Essay

Harley Davidson

...Harley is cash rich firm with very little debt. However Harley has no idea what to do with their extra money. They need to find strategic measures to determine how to invest the cash for that it is obtaining a smaller rate of return (2%) compared to the ROE of its core business (29%). This excess cash is diluting the returns of the firm. Revenue Should Increase: Harley is committed to expanding and as long as the increases to production will give them overall increases in revenue. Catalysts: 1. Positive Demographics 2. Strong Brand Name 3. Good Management Team Target Price: $58.40 Brief Company Overview/Description Harley-Davidson, Inc. (HDI) is the parent company for the group of companies doing business as Harley-Davidson Motor Company, Buell Motorcycle Company and...

Words: 6731 - Pages: 27

Premium Essay

China and India

... ❖ India ❖ Bilateral trade between India and China 4. Population Trends ❖ Drawing a comparison 5. Conclusion 6. Bibliography Introduction China’s and India’s rapid growth and economic policies, as well as their role in International trade and capital markets, have generated a large amount of interest and research. Much of the attention focuses on their growth prospects and on their faculty to influence global governance. Two salient characteristics of China and India are the vast size of their territory and their enormous populations. They are two of the most populous countries, accounting for nearly 40 percent of the world’s population in 2006. China’s economy is also one of the largest, with a GDP exceeding two billion dollars. At the onset of the reforms in the late 1970s, China was the 10th largest economy in the world and by 2005 became the...

Words: 5871 - Pages: 24

Premium Essay

Country Feasibility Study

...Table of Contents Executive Summary 1.0 Introduction Page 1 1.1 Company Profile Page 2 1.2 Product Profile Page 2 1.3 Company’s Aim and Vision Page 2 1.4 Scope of the Analysis Page 2 2.0 Geographic Location Page 3 3.0 Demographic Analysis Page 3 4.0 Economic Analysis Page 3 4.1 Macroeconomic Analysis Page 4 4.1.1 GDP and GDP Growth Page 4 4.1.2 GDP per capita and GDP per capita PPP Page 5 4.1.3 Income Distribution Page 5 4.1.4 Major Exports and Imports Page 5 4.2 Business Environment Page 6 4.2.1 East of Doing Business Page 6 4.2.2 Economic Freedom Page 7 4.2.3 Perceived Corruption Page 7 4.2.4 Tariffs and Trade Agreements Page 7 4.2.5 Competitive Analysis Page 8 4.3 Per Capita Spending Page 9 4.4 Technological and Physical Infrastructure Page 9 4.4.1 Transport Infrastructure Page 10 4.4.2 Physical Infrastructure Page 10 5.0 Social Characteristics and Market Potential Page 11 6.0 Political and Legal Environment Page 11 6.1 Political Risk Page 11 6.2 Legal Risk Page 11 7.0 Trade and Diplomatic Relations with Australia Page 12 8.0 Country of Choice Page 12 9.0 Mode of Entry Page 12 10.0 Conclusion Page 13 References Page 14 Executive Summary This report examines and assesses the market suitability of two countries for the company Octahedron’s SWIM software....

Words: 4387 - Pages: 18

Premium Essay

International Bsinrsss

...are set by the US * Now domination China, Asia US domination is gone, different countries dominate the world The demographics of the world economy has changed How do you measure globalization? * University of zurich * http://globalization.kof.ethz.ch/ The KOF Index of Globalization measures the three main dimensions of globalization: 1. Economic globalization * Actual flows (37%) * Trade (percentage of GDP) * Foreign direct investement, flows (percentage of GDP) * Portfolio investement (percentage of GDP) * Income payments of foreign nationals (percentage of GDP) * Restrictions * Hidden import barriers * Mean tariff rate * Taxes on international trade (percentage of current revenue) 2. Social (39%) * Data on personal contact * Data on information flows 3. political. (25%) * Embassieses 3. Types of globalization 1. Globalization of products 2. Globalization of markets Active vs passive globalization Globalization can also be passive. Companies that do not want to globalize could also be affected by globalization. Companies might lose everything if they do not globalize 4. What are the drivers of globalization * Technological: Telecom, transport,… * Barriers to trade have reduced: The decline of barriers for the free flow of goods Doha Round 5. Positive and negative Positive * Globalization......

Words: 10538 - Pages: 43

Premium Essay

Business in Global Arena Exam

... |Tanzania |Uganda | |GNI |$60.27 Billion |$52.05 Billion |$36.08 Billion | |GNI per capita in PPP dollars |$1,550 |$1,260 |$1,140 | |GDP |$1,600 |$1,400 |$1,200 | |GDP Growth Rate |2.6% |6% |5.3% | |HDI |0.470 |0.398 |0.422 | |Inflation Rate |9.3% |21.4% |13.1% | |Public Debt |66.7% of GDP |21.4% of GDP |19.7% of GDP...

Words: 2594 - Pages: 11

Premium Essay

Development

...Human Development Report 2014 Sustaining Human Progress: Reducing Vulnerabilities and Building Resilience Empowered lives. Resilient nations. The 2014 Human Development Report is the latest in the series of global Human Development Reports published by UNDP since 1990 as independent, empirically grounded analyses of major development issues, trends and policies. Additional resources related to the 2014 Human Development Report can be found online at http://hdr.undp.org, including complete editions or summaries of the Report in more than 20 languages, a collection of papers commissioned for the 2014 Report, interactive maps and databases of national human development indicators, full explanations of the sources and methodologies employed in the Report’s human development indices, country profiles and other background materials as well as previous global, regional and national Human Development Reports. Human Development Report 2014 Sustaining Human Progress: Reducing Vulnerabilities and Building Resilience Empowered lives. Resilient nations. Published for the United Nations Development Programme (UNDP) Human Development Reports 1990–2014 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007/2008 2009 2010 2011 2013 2014 Concept and Measurement of Human Development Financing Human Development Global Dimensions of Human Development People’s Participation New Dimensions of Human Security Gender and Human Development......

Words: 191797 - Pages: 768

Free Essay

2004 Un Article Multiculturalism

...HUMAN DEVELOPMENT REPORT 2004 Cultural Liberty in Today’s Diverse World Accommodating people’s growing demands for their inclusion in society, for respect of their ethnicity, religion, and language, takes more than democracy and equitable growth. Also needed are multicultural policies that recognize differences, champion diversity and promote cultural freedoms, so that all people can choose to speak their language, practice their religion, and participate in shaping their culture— so that all people can choose to be who they are. 65 108 166 55 34 82 3 14 91 51 40 138 29 62 6 99 161 134 114 66 128 72 33 56 175 173 130 141 4 105 169 167 43 94 73 136 144 168 45 163 48 52 30 32 Albania Algeria Angola Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Central African Republic Chad Chile China Colombia Comoros Congo Congo, Dem. Rep. of the Costa Rica Côte d'Ivoire Croatia Cuba Cyprus Czech Republic 17 154 95 98 100 120 103 109 156 36 170 81 13 16 122 155 97 19 131 24 93 121 160 172 104 153 115 23 38 7 127 111 101 10 22 21 79 9 90 78 148 28 44 110 135 50 80 Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Greece Grenada Guatemala Guinea...

Words: 113315 - Pages: 454

Premium Essay

Poverty in Phillipine

...SEARCA Agriculture & Development Discussion Paper Series No. 2007-1 Why Does Poverty Persist in the Philippines? Facts, Fancies, and Policies Arsenio M. Balisacan SOUTHEAST ASIAN REGIONAL CENTER FOR GRADUATE STUDY AND RESEARCH IN AGRICULTURE Science and education for agriculture and development Arsenio M. Balisacan SEARCA College, Los Baños, Laguna Tel/Fax: (63) 495362290 E-mail: post@agri.searca.org The SEARCA Agriculture and Development Discussion Paper Series aims to disseminate information on current trends or researches to inspire discussion between the author and other stakeholders in the same field of interest. SEARCA encourages readers to directly contact the author through the address provided or join the discussion board for this paper at http://bit.ly/searca-dps-2007-1. DISCLAIMER The point of view taken in this paper is entirely that of the author and does not reflect in any way, SEARCA’s position. INTRODUCTION A ddresing the widespread poverty problem is the single most important policy challenge facing the Philippines. Not only is poverty high compared with other countries in East Asia, but also its reduction is so slow that the country has become the basket case in the region. Proposals peddled to address the poverty problem are plenty—and keep growing. At one end of the spectrum are proposals contending that the root of the problem is simply the lack of a respectable economic growth. Putting the economy on a high-growth path is......

Words: 7211 - Pages: 29

Premium Essay

European Cluster

...Journal of World Business 37 (2002) 69±80 Eastern European cluster: tradition and transition     Gyula Bakacsi, Takacs Sandor, Karacsonyi Andras, Imrek Viktor1 Budapest University of Economic Sciences and Public Administration, 1093 Budapest, Hungary Abstract The eastern European cluster consists of Albania, Georgia, Greece, Hungary, Kazakhstan, Poland, Russia, and Slovenia. It has a population of 232 million and a gross domestic product (GDP) of U.S.$772 billion. The cluster's distinctive cultural practices are high power distance and high family and group collectivism. The region is facing signi®cant challenges during its period of transition from communist philosophy to market-based economies. The participating managers value a much greater degree of future and performance orientation, but are strongly attached to their cultural heritage of deep family and group cohesion. They are also highly value charismatic and team-oriented leadership. The challenges and complexities facing the region are explored in the paper. # 2002 Published by Elsevier Science Inc. 1. Introduction This article provides an in-depth look at the eastern European culture. This region is understudied due to its socialist past and was not (with the exception of Greece and Yugoslavia), included in Hofstede's seminal work (1980) or basic reviewing and synthesizing study of Ronen & Shenkar, 1985 comparative study of 25 countries. Over the past few years, a few writers have examined cultural......

Words: 8788 - Pages: 36