Human Development Indicators and Poverty

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Questions and Answers

How does high population growth impact resource availability in a country?

  • It strains resources like education, healthcare, and infrastructure. (correct)
  • It leads to surplus in education and healthcare resources.
  • It enhances the development of infrastructure projects.
  • It allows for more effective use of environmental resources.

Why are economies reliant on primary commodities particularly vulnerable?

  • They depend on high demand for manufactured goods.
  • They have diverse economic bases that can mitigate risks.
  • They experience rapid technological advancements.
  • They rely on exports of raw materials, making them vulnerable to price fluctuations. (correct)

What does the Human Development Index (HDI) aim to measure in countries?

  • National socioeconomic development by combining education, health, and income (correct)
  • The average life expectancy alone
  • Only economic wealth based on GDP
  • The political stability of a nation

How does the HDI adjust for diminishing marginal utility of income?

<p>Using a logarithmic scale for income per capita (A)</p> Signup and view all the answers

In what way does HDI adjust for income differences?

<p>By applying a logarithmic scale of income in its calculation. (A)</p> Signup and view all the answers

What characterizes absolute poverty measurement?

<p>It is defined by the World Bank's international poverty line. (C)</p> Signup and view all the answers

Which factor attributed to the tragic incidents in Bangladesh's garment industry?

<p>Poor safety regulations and standards (D)</p> Signup and view all the answers

What is the male-to-female ratio in Pakistan and Bangladesh that indicates gender inequality?

<p>1.05 (C)</p> Signup and view all the answers

Which of the following describes a consequence of poor infrastructure?

<p>Impediments to growth due to inadequate transportation, energy, and communication networks. (D)</p> Signup and view all the answers

Which organization had a significant impact on women's empowerment in Bangladesh?

<p>BRAC and Grameen Bank (B)</p> Signup and view all the answers

What has been a key criticism of foreign aid in Pakistan since 1947?

<p>Elites benefit more than the impoverished population (A)</p> Signup and view all the answers

What was a significant effect of the 2013 garment factory collapse in Bangladesh?

<p>Heightened awareness of unsafe working conditions (C)</p> Signup and view all the answers

Which of the following statements about female education enrollment is correct?

<p>Bangladesh has higher female education enrollment than male (B)</p> Signup and view all the answers

What was a key aspect of governance during General Pervez Musharraf's rule in Pakistan?

<p>Major military influence in governance (A)</p> Signup and view all the answers

Which statement accurately reflects the military's role in Bangladesh after the 1990s?

<p>The military completely withdrew from politics after 1990 (B)</p> Signup and view all the answers

What was the Corruption Perceptions Index score for Pakistan in 2017?

<p>32 (C)</p> Signup and view all the answers

What describes the condition of women's education in Pakistan as per the governance model?

<p>Deprioritized to maintain elite control (B)</p> Signup and view all the answers

What major development improvement has Bangladesh seen compared to Pakistan?

<p>More effective NGO sector involvement (C)</p> Signup and view all the answers

In which area did Ghana significantly outperform Côte d'Ivoire (CIV) according to the development comparison?

<p>Youth literacy rates (B)</p> Signup and view all the answers

What historical factor influenced Ghana's democratic development positively?

<p>Indirect British rule (D)</p> Signup and view all the answers

Which metric indicates that Ghana has improved its status relative to Côte d'Ivoire (CIV)?

<p>Higher Human Development Index (HDI) score (D)</p> Signup and view all the answers

What role does colonial history play in the development trajectories of Ghana and CIV?

<p>It shaped their legal systems and administrative structures. (D)</p> Signup and view all the answers

What issue is prevalent in both Pakistan and Bangladesh despite their differing governance structures?

<p>Corruption (D)</p> Signup and view all the answers

Which concept emphasizes that development is about improving people's quality of life?

<p>Sen's capability approach (C)</p> Signup and view all the answers

What is a possible consequence of growing per capita income without poverty reduction?

<p>Elitism and exclusion of large population segments. (A)</p> Signup and view all the answers

What factor contributed to significant political instability in Bangladesh post-2014?

<p>Boycotting of elections by major political party (D)</p> Signup and view all the answers

In which way can high-income countries benefit from aiding low-income countries?

<p>By promoting mutually beneficial trade relationships. (C)</p> Signup and view all the answers

Which of the following did NOT contribute to the post-independence development of Ghana?

<p>French direct rule institutions (C)</p> Signup and view all the answers

Why is money alone inadequate for achieving development goals?

<p>It fails to guarantee access to essential services. (B)</p> Signup and view all the answers

What was one major social issue, as observed in both countries, that impacted development?

<p>Severe gender inequality (A)</p> Signup and view all the answers

What was the status of life expectancy in Ghana as of 2017 compared to Côte d'Ivoire?

<p>Higher in Ghana (C)</p> Signup and view all the answers

What aspect of happiness is linked to development policies?

<p>Social factors, such as community and freedom, also play a role. (B)</p> Signup and view all the answers

What strategy did landowners in rural Pakistan use to reinforce inequality?

<p>Dominance over tenant rights (C)</p> Signup and view all the answers

What distinguishes Bangladesh's development path from Pakistan’s?

<p>Emphasis on women's empowerment and social development in Bangladesh. (D)</p> Signup and view all the answers

How does a vicious cycle of low income manifest in developing countries?

<p>Low income limits savings, leading to low investment. (D)</p> Signup and view all the answers

What are common problems faced by diverse countries in Africa, Asia, and Latin America?

<p>Poverty and inequality throughout their societies. (D)</p> Signup and view all the answers

What underlying issue can extreme inequality in a country lead to?

<p>Social instability and civil conflicts. (B)</p> Signup and view all the answers

Which factor contributes to the effectiveness of development policies?

<p>Implementation of policies that also address social dimensions. (A)</p> Signup and view all the answers

Which approach is highlighted as a means of empowering individuals in the context of development?

<p>Enhance capabilities to function. (A)</p> Signup and view all the answers

What did the development trajectories of Ghana and CIV indicate about post-colonial relationships?

<p>They significantly influence long-term development. (B)</p> Signup and view all the answers

Flashcards

Human Development Index (HDI)

A measure of a country's overall development, combining factors like education, health, and income.

Diminishing Marginal Utility

The idea that the value of each additional unit of something (like income or consumption) decreases as you have more of it.

How HDI Adjusts for Diminishing Marginal Utility

The HDI uses a logarithmic scale for income to account for the diminishing value of income as it increases. So, a large difference in income between two countries contributes less to the HDI than a similar difference between two poorer countries.

Education Gender Gap

The percentage of women enrolled in education compared to the percentage of men enrolled. A higher percentage of women indicates greater gender equality in education.

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Girls' Mortality Rate

The rate at which girls die compared to boys, often due to factors like neglect or access to healthcare. A lower rate indicates greater gender equality in survival.

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Foreign Aid

Financial aid provided by one country to another. It can be used to support development initiatives.

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Effective Use of Aid in Bangladesh

The use of NGOs like BRAC and Grameen Bank in Bangladesh, which have been effective in promoting women's empowerment and socioeconomic development.

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Aid Ineffectiveness in Pakistan

A situation where elites, or the wealthy, see the most benefits from foreign aid, often at the expense of the poor. This can be a problem in countries with poor governance and corruption.

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Elitist Growth Model

A governance model where a small elite group, often including the military and bureaucracy, holds significant power with limited checks and balances, prioritizing their own interests over the needs of the majority.

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Common Law

A system where legal decisions are based on established precedents and past court rulings, rather than codified laws.

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Multidimensional Poverty Index (MPI)

A measure that reflects the combined impact of poverty on various aspects of life, including health, education, and living standards.

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Indirect Rule

The practice of governing a territory through local officials and institutions, while respecting their existing traditions and structures.

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Direct Rule

The practice of governing a territory directly by imposing the colonial administration's systems and structures.

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Ethnolinguistic Fractionalization

The degree to which a population is divided into distinct ethnic, linguistic, or cultural groups.

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Political Manipulation of Ethnic Divisions

The practice of using ethnic divisions to manipulate and exploit the population for political gain.

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Military Influence in Governance

A situation where the military exerts significant influence over government policies and decisions.

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Inequality

The degree to which resources and opportunities are distributed unevenly within a society.

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Political Stability

The ability of a country to maintain political stability and avoid major disruptions like civil wars or coups.

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Democratic Transition

The process of transition from a military-dominated regime to a civilian-led government.

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Civil Society

The ability of a country's citizens to freely express their opinions, participate in political activities, and hold their leaders accountable.

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Poverty Reduction

The rate at which a country's poverty levels decline over time.

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Development Gap

The gap between the level of development achieved by a country and the level predicted based on its income.

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Purchasing Power Parity (PPP)

A measure of a country's income level that takes into account the cost of living in different countries. It adjusts for price differences, providing a more realistic comparison of the purchasing power of income across countries.

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Why PPP shows smaller income differences between rich and poor countries?

The difference in income between rich and poor countries seems smaller when measured using PPP because it considers the varying prices of goods and services in different countries. For example, a dollar in a developing country might buy more goods and services than a dollar in a developed country.

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Absolute Poverty

A method of measuring poverty by setting a minimum income threshold, below which people are considered to be living in poverty. This threshold is usually based on the cost of essential goods and services.

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Relative Poverty

A method of measuring poverty by comparing a person's income to the average income in their country. People who earn significantly less than the average are considered to be living in relative poverty.

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What is Development Economics?

The study of how to improve the well-being of people in developing countries, considering not just economic factors but also social, political, and institutional aspects.

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What is Elitist Growth?

A situation where a country's economy grows but the benefits mainly go to a small elite, leaving the majority of the population poor. This can happen when growth is not inclusive or sustainable.

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How do high-income countries benefit from helping low-income countries?

The argument that helping low-income countries develop is in the best interests of high-income countries because it creates stable trade partners, reduces migration pressures, and helps address global challenges like climate change.

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What are 'Capabilities to Function?'

This concept emphasizes that development is about enhancing people's capabilities to live fulfilling lives, not just about increasing income. It looks beyond material wealth to consider factors like health, education, and freedom.

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How does Happiness Relate to Development?

Happiness is not just about money, but also about social factors, freedom, and self-esteem. Development strategies should consider not just economic growth, but also social well-being.

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How Does Road Infrastructure Affect Development?

Road infrastructure can significantly impact development by improving access to markets, education, healthcare and other services. Good roads can help lift communities out of poverty by enabling economic activity and social inclusion.

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How have Bangladesh and Pakistan's development paths differed?

Bangladesh has focused on social development, especially women's empowerment and education, with strong NGOs like BRAC and Grameen Bank playing a key role in poverty reduction. Pakistan, on the other hand, has prioritized economic growth favoring elites, with limited investment in social sectors.

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How does low income turn into a vicious cycle of poverty?

Low income can create a vicious cycle of poverty where people cannot save, leading to low investment, low productivity, and poor health and education, perpetuating low income.

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What are some common development challenges faced by diverse developing countries?

Many developing countries face similar challenges despite their diverse contexts. These include widespread poverty, inequality, weak institutions, and limited access to resources.

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What is Inclusive Growth?

Growth that benefits all members of society, not just a small group. It means reducing inequality, promoting access to education and healthcare, and creating opportunities for everyone.

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What is Inequality?

A situation where a country's income is unevenly distributed, with a small group having a disproportionate share of wealth. This can lead to social unrest and hinder development.

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What are 'Freedoms and Capabilities'?

The ability of individuals to make choices and participate in society, such as accessing education, healthcare, and employment opportunities.

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What is Extreme Inequality?

This refers to situations where extreme disparity in wealth or income exists, often leading to significant social challenges and potentially even instability and conflict.

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What is Colonial Legacy?

A range of factors, including the legal system, administrative structures, and relationships with former colonial powers, that can significantly influence a country's development trajectory.

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What is Social Investment?

Investment in education, health, and other social services, often aimed at improving the well-being of the population. This can contribute to long-term development by boosting productivity and human capital.

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Study Notes

Human Development Index (HDI)

  • Measures national socioeconomic development using education, health, and adjusted real income per capita.
  • Ranges from 0 to 1.
  • Ranks countries on three goals: long and healthy life (life expectancy), knowledge, and a decent standard of living (adjusted GDP per capita).
  • Diminishing marginal utility of income is accounted for by using a logarithmic scale for income, decreasing the contribution to the HDI as income rises.

Case Study: Pakistan and Bangladesh

  • Social Development:

    • Bangladesh has higher female education enrollment than male, while Pakistan's is lower, with female enrollment under 75% of male.
    • Both countries have unsafe garment factory conditions, with significant worker deaths.
    • Bangladesh's NGOs (BRAC and Grameen Bank) have shown promising impacts on women's empowerment.
    • Pakistan's military influence significantly impacted governance, hindering some social development.
    • Tragic incidents of factory fires and collapses led to worker safety concerns, with European retailers having a more effective response to safety standards than North American retailers.
  • Gender Inequality

    • Both countries show gender inequality, with a male-to-female ratio near 1.05, indicating higher mortality rates for girls and selective abortions.
    • Women's safety in industries like garment factories is critical in both countries.
  • Foreign Aid

    • Pakistan was a top recipient, but aid effectiveness was questioned, possibly benefiting elites more than the poor.
    • Bangladesh effectively utilized aid through organizations like BRAC and Grameen Bank.
  • Governance and Military Influence

    • Pakistan's military played a major role in governance under General Pervez Musharraf's rule.
    • Ongoing conflict with India and Kashmir disputes divert resources away from social priorities.
    • Corruption was a significant issue in Pakistan and Bangladesh.
    • Pakistan still struggles with political instability after democratic transitions.
  • Civil Society

    • Bangladesh has a dynamic NGO sector, which played a significant role in poverty reduction and empowerment of women.
    • Pakistan's NGO sector is less developed but with potential.
  • Governance Models

    • Pakistan's elite-growth model focused on elites and the military, failing to address the needs of the public, hindering development in health, education, and literacy.
    • Bangladesh made significant social development progress in education and women's empowerment.
  • Conclusion

    • Bangladesh showed more progress in education, women's empowerment, and NGO involvement over time.
    • Pakistan had higher economic growth that was not equally distributed, impacted by military involvement and instability.
    • Both countries face persistent gender inequalities and significant corruption issues.

Case Study: Ghana and Côte d'Ivoire (CIV)

  • Development Comparison

    • Ghana surpassed initial development setbacks and outpaced CIV in income growth and inequality.
  • HDI Comparison

    • Ghana had a higher HDI (0.592) than CIV (0.492), exceeding projected values. This suggests more success in areas beyond just income.
  • Poverty Trends

    • Ghana had lower poverty rates (12% below $1.90/day) compared to CIV (28.2%).
    • Ghana had a much lower multidimensional poverty index (MPI) than CIV
  • Economic Growth

    • Ghana outpaced CIV in GDP per capita around 2017.
  • Life Expectancy & Mortality

    • Ghana had higher life expectancy.
    • Lower under-5 mortality.
  • Education

    • Ghana had higher youth literacy rates.
  • Colonial Legacies

    • Both countries have lasting colonial legacies, with Ghana having a better administrative structure and a more decentralised government than CIV, potentially impacting success. The British model of indirect rule in Ghana versus the French model of direct rule in CIV.
  • Extractive Institutions

    • Both countries faced colonial exploitation, with differing legal systems affecting economic development. Ghana's common law is considered more business-friendly
  • Postcolonial Relations:

    • Postcolonial ties with France somewhat hindered CIV's development.
  • Ethnolinguistic Fractionalisation:

    • Both countries are diverse. CIV's ethnic divisions exacerbated civil conflicts.
  • Inequality

    • Ghana had slightly lower inequality than CIV - potentially related to social instability in CIV.
  • Conclusion

    • Ghana's post-independence development surpassed CIV in several key development criteria.
    • Historical legacies, specifically colonial practices, have strongly influenced each nation.

General Development Economics

  • Development Economics Definition: Focuses on the efficient allocation of scarce resources and sustained economic growth over time, considering social, political, and institutional factors.

  • Growth without other objectives: Per capita income growth doesn't automatically lead to poverty reduction or increased self-esteem, highlighting the need for inclusive growth policies.

  • High-income country interest in low-income country development: High-income countries often benefit materially from stable, growing trade partners and reduced migration pressures.

  • Capabilities to Function: Development is about improving people's ability to lead valued lives (e.g., health, education, and social engagement), not just income.

  • Happiness and Development: Happiness is related to economic security, freedom, community, and self-esteem.

  • Road Infrastructure: Improves access to opportunities and markets, impacting overall development and social inclusion

  • Development Path Differences: Examining the differing approaches between Pakistan and Bangladesh; including governance, social priorities, and aid utilization, highlights the crucial role of governance to improve development.

  • Vicious Cycle of Poverty: Low income can create a cycle where low savings, investment, productivity, healthcare, and education further trap countries in poverty.

  • Similar Problems in Diverse Countries: Several regions of the world face similar issues: poverty, inequality, weak institutions, population growth, dependence on primary commodities, poor infrastructure, limited education and healthcare, and conflict.

  • Purchasing Power Parity (PPP) and Exchange Rates: PPP measures account for price differences between countries, showing smaller income disparities than exchange rate methods, which disregard these differences.

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