Unit 4.8·Global Economics

Composite Indicators of Development

Measuring Development

AO2

Syllabus requirement

Covers HDI, Gender Inequality Index (GII), Inequality-adjusted HDI (IHDI), and Happy Planet Index as tools to capture complex development dimensions.

Assessment objectives
AO2 Application and Analysis

Summary

This section explains single indicators used to measure different dimensions of development and how they relate to living standards. It covers income measures like GDP/GNI per capita (especially at PPP), and non-income measures including health, education, economic/social inequality, energy, and environmental indicators. It highlights why PPP improves international comparisons and why relying on a single indicator can miss key aspects such as inequality, political freedom, or environmental quality.

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