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Human Development Report published by UNDP compares countries based on the educational levels of the people, their health status and per capita income. Consider the following statements related to this.
1. In HDR Per Capita Income is calculated in dollars adjusted by purchasing power for all countries so that it can be compared.
2. Health, education and skill indicators are used along with income as a measure of development in HDI.
Select the correct statements using codes below.
1 only
2 only
Both 1 and 2
None of the above
The Human Development Index (HDI) was developed by the United Nations as a metric to assess the social and economic development levels of countries. Four principal areas of examination are used to rank countries: mean years of schooling, expected years of schooling, life expectancy at birth and gross national income per capita. Hence skills are not computed. This index makes it possible to follow changes in development levels over time and to compare the development levels of different countries.
The HDI attempts to make an assessment of 188 diverse countries and territories, with very different price levels. To compare economic statistics across countries, the data must first be converted into a common currency. Unlike market exchange rates, PPP rates of exchange allow this conversion to take account of price differences between countries. In that way GNI per capita (PPP $) better reflects people's living standards uniformly. In theory, 1 PPP dollar (or international dollar) has the same purchasing power in the domestic economy of a country as US$1 has in the US economy.
By: Tivani Chauhan ProfileResourcesReport error
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