A substantial limitation of the Human Development Index (HDI) is its inability to capture:
Show answer & explanation
Correct answer: D
Explanation
Answer: Social inequality and income distribution.
Explanation:
The Human Development Index (HDI) is released by the United Nations Development Programme (UNDP). Although it is a robust tool for measuring development, a major limitation is that it is based on average achievements. It does not reflect the actual state of social inequality, poverty levels, or income distribution within a country. For instance, two countries may have identical HDI scores; yet, in one, income distribution could be highly unequal, while in the other, it could be more equitable. To address this very shortcoming, the UNDP now also releases the 'Inequality-adjusted Human Development Index' (IHDI).
Additional Points:
Three Dimensions of HDI: 1. A long and healthy life (Life Expectancy), 2. Knowledge (Average and expected years of schooling), 3. Standard of living (Gross National Income per capita).
Proponents: Mahbub-ul-Haq (Pakistani economist) and Amartya Sen (Indian economist) developed it in 1990.
Potential Exam Questions and Answers:
Question: What is the maximum possible value in the calculation of the HDI?
Answer: 1.0 (The score ranges from 0 to 1).
Question: Who releases the 'Gender Inequality Index' (GII)?
Answer: UNDP.