Hdi to Measure Development Essay
1. Introduction 2
2. Growth and Development 2
3. Human Development Index 3
3.1 Historical Background of Human Development Measurement 4
3.2 Definition of Human Development and HDI 5
3.3 HDI Calculation 6
3.4 HDI Interpretation and Application 7
3.5 Limitations 8
3.6 Criticism 9
4. Conclusion 10
Appendix-I (Acronyms and abbreviations) 10
Over the last two decades economic growth has got a lot more attention among policymakers, corporate, economists, and academics in India and across the world. Since 1991, when India implemented liberalization, privatization, and globalization policies, GDP growth rate has become a buzz word. It has got …show more content…
Economic development is a normative concept meaning that the definition is variable however, Michael Torado has defined it as “an increase in living standards, improvement in self-esteem needs and freedom from oppression as well as a greater choice”.
Economic Growth is an increase in a country's real level of national output which can be caused by an increase in the quality of resources by education etc, increase in the quantity of resources & improvements in technology. Economic Growth can be measured by an increase in a country's GDP. However, this does not necessarily mean that development has occurred.
There is an issue of the distribution of income. It is thought that an increase in a country's GDP means everyone benefits however this increase might only benefit the rich. This creates alienation, encourages crime and threatens social cohesion. This can be justified on the grounds that wealth will eventually trickle down, the 'trickle down' effect. But the problem this creates is that it is far too slow compared to other development policies for example an increase in government spending on health and education.
Economic Growth does not take into account the depletion of natural resources which might lead to pollution, congestion & disease. Development however is concerned with sustainability