Non-Monetary Measures of Development

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Questions and Answers

How many unique indicators are listed for the SDGs, considering repeated ones?

248 unique indicators

240 unique indicators

235 unique indicators

231 unique indicators (correct)

Which criterion is NOT one of the five criteria in selecting indicators for the SDGs?

Cost-effectiveness (correct)

Statistical adequacy

Timeliness

Coverage

What is the purpose of establishing performance thresholds in measuring the SDGs?

To identify unnecessary indicators

To determine the best and worst performers (correct)

To compare past results directly

To set indicators' valid measures

What does the International Spillover Index track?

Impacts of a country’s actions on others Signup and view all the answers

What must be true for the overall rating of a country to be considered red in the dashboard’s traffic light reading?

Two worst performing variables must be red Signup and view all the answers

Which of the following issues presents a challenge in measuring the SDGs?

Uneven data availability across the world Signup and view all the answers

What is meant by 'censoring extreme values' in the context of creating indexes and scoring?

Removing outliers from data distributions Signup and view all the answers

What is a significant problem caused by indicators that are still vague?

They may not provide clear policy guidance Signup and view all the answers

What is a significant impact of shocks on the poor compared to the non-poor?

Greater reduction in income Signup and view all the answers

Which type of risk affects many people simultaneously?

Covariate risks Signup and view all the answers

What does risk reduction primarily focus on?

Minimizing future risks and impacts Signup and view all the answers

Which of the following is NOT considered a basic need for human development?

Transport infrastructure Signup and view all the answers

Which index combines measures of education, health, and purchasing power for socioeconomic development assessment?

Human Development Index Signup and view all the answers

What does sustainability primarily concern itself with?

Intergenerational equity and resource usage Signup and view all the answers

Which aspect is NOT mentioned as part of the aspects of sustainability?

Quality of education Signup and view all the answers

What is a characteristic of situational poverty?

Instability caused by sudden shocks Signup and view all the answers

How many Quality of Life indicators does William Easterly describe?

81 Signup and view all the answers

Which of the following strategies is NOT a method of coping with risk?

Investing in high-risk stocks Signup and view all the answers

What is indicated by a decline in indicators such as life expectancy and infant mortality?

Increased poverty incidence Signup and view all the answers

What are the three important categories for higher Quality of Life according to William Easterly?

Individual rights and democracy, political stability and peace, absence of 'bads' Signup and view all the answers

What is a typical source of risk that affects individuals or specific households?

Idiosyncratic risks Signup and view all the answers

What does Amartya Sen's concept of capabilities focus on?

Choices and opportunities individuals have Signup and view all the answers

Which of the following freedoms is NOT included in Sen's Central Human Capabilities?

Freedom from governmental regulations Signup and view all the answers

What type of poverty results from continuous movements between being poor and non-poor?

Persistent poverty Signup and view all the answers

What is the outline of measuring the Sustainable Development Goals (SDGs)?

Goals → Targets → Indicators Signup and view all the answers

Which of the following is a challenge of sustainability in terms of social scope?

Determining for whose wellbeing to consider Signup and view all the answers

What does the concept of intergenerational equity in sustainability refer to?

Ensuring that future generations inherit a stable environment Signup and view all the answers

What major topic does not directly relate to the indicators for Quality of Life?

Economic development Signup and view all the answers

Study Notes

Vulnerability to Shocks

Exposure to shocks can lead to increased poverty incidence, particularly affecting the poor.
Consequences can include lower future income, reduced food consumption, and prolonged periods of poverty.
The poor exhibit higher risk aversion; income declines have a more significant impact on them compared to wealthier individuals.

Types of Risks

Covariate risks affect large populations, while idiosyncratic risks impact individuals or specific households.
Risks can lead to chronic poverty, persistent poverty from temporary shocks, or regular movement in and out of poverty.

Risk Reduction and Management

Risk reduction involves strategies such as education, vaccination, and agricultural investments.
Risk management focuses on mitigatory actions like savings, income diversification, and social capital investments.
Coping mechanisms for shocks can include asset liquidation, child labor, or postponement of expenditures.

Basic Needs and Entitlements

Basic needs encompass commodities or services crucial for human development, including health, education, and nutrition.
Essential aspects include access to healthcare, educational enrollment and literacy rates, and nutrition levels measured by stunting and wasting rates.

Indicators of Basic Needs

Human Development Index (HDI) combines measures of education, health, and GDP per capita to assess national development.
Multidimensional Poverty Index (MPI) provides a broader perspective on poverty through various deprivations in education, health, and living standards.

Sustainability

Sustainability emphasizes intergenerational equity, ensuring future generations benefit from natural resources usage.
Key concerns include climate change, public debt, and the preservation of natural, human, physical, and social assets.

Quality of Life

Quality of Life (QoL) includes individual rights, political stability, and the absence of negative factors such as crime and pollution.
Development, as per Amartya Sen, expands individual freedoms and capabilities, allowing people to pursue productive activities and participate in society.

Measuring the Sustainable Development Goals (SDGs)

SDGs comprise 169 targets and 231 unique indicators used for evaluating global development measures.
These indicators are subject to criteria including relevance, statistical adequacy, timeliness, coverage, and measurable progress.

Challenges in Measuring SDGs

Vague indicators, uneven data availability, and discrepancies in updated measures can complicate assessments.
Index scores and rankings need careful interpretation due to potential recalibrations based on new data.

Creating Indexes and Scoring

Performance thresholds are established for indicators; extreme values are censored for better clarity.
Aggregation of indicators occurs across and within SDGs, requiring data normalization for comparability.

Using the Dashboard

A traffic light system categorizes performance metrics; red indicates poor performance and green signifies satisfactory outcomes.
Overall ratings depend on the two worst-performing metrics within each goal.

International Spillover Index

This index measures how a nation's actions impact others’ environmental and social systems through trade and finance, emphasizing the interconnectedness of global development initiatives.

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Description

Explore the different semi and non-monetary measures of development that focus on resource use and quality of life. This quiz examines the relationship between vulnerability to shocks, satisfaction of basic needs, and measuring the Sustainable Development Goals (SDGs). Test your knowledge on how these measures contribute to sustainable practices.