Measures of development — Edexcel A-Level Economics A
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Measures of development explained
Economists use other indicators alongside the Human Development Index (HDI) to capture inequality, poverty, and gender disparities.
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Measures include the Inequality-adjusted Human Development Index (IHDI), which lowers the HDI value if inequality is high; the Multidimensional Poverty Index (MPI), which measures overlapping deprivations in health, education, and living standards; and the Gender Inequality Index (GII). The Genuine Progress Indicator (GPI) accounts for environmental costs. Each indicator has strengths and limitations: the MPI highlights specific deprivations but requires complex data, while the IHDI reveals distributional issues. For MCQs, match a definition or scenario to the correct alternative indicator.
Your focus
- Identify other indicators of development such as the IHDI, MPI, and GII.
- Explain what each alternative indicator measures and how it is interpreted.
- Distinguish between standard measures and other indicators that capture inequality or environmental costs.
Measures of development exam tips
Marking Points
- Identifies other indicators of development such as the Inequality-adjusted Human Development Index (IHDI), Multidimensional Poverty Index (MPI), and Gender Inequality Index (GII).
- Explains that the IHDI adjusts standard development measures to account for inequality within a country.
- States that the Multidimensional Poverty Index (MPI) measures overlapping deprivations in health, education, and living standards.
- Recognises the Genuine Progress Indicator (GPI) as a measure that includes environmental costs and non-market activity.
- Evaluates that while these other indicators provide a broader picture than single metrics, they often require complex data collection.
Examiner Tips
- 💡Learn the specific focus of each other indicator: for example, the IHDI focuses on inequality, while the MPI focuses on multiple deprivations.
- 💡When a question describes a measure, check whether it accounts for environmental costs (like GPI) or gender disparities (like GII) before choosing an answer.
- 💡Practise distinguishing between the standard HDI and other indicators like the IHDI and MPI, as MCQs often test this contrast.
Common Mistakes
- Misunderstanding: HDI is the only composite indicator of development. Correction: Other indicators like the IHDI and MPI provide additional insights into inequality and poverty.
- Misunderstanding: The MPI only measures income poverty. Correction: The MPI measures deprivations in health, education, and living standards, not just income.
- Misunderstanding: Other indicators of development are only about income. Correction: They cover inequality, gender disparities, and environmental sustainability.