Composite Indicators of Poverty and Living Standards:
Composite Indicators of Poverty and Living Standards:
Development is more than simply increasing economic output i.e.GDP per capita. It is a wider concept than economic growth. Even if a country's economy experiences real growth of GDP it does not mean that economic development is taking place. Nevertheless, wider more meaningful indicators of development are often correlated with GDP per capita.
The Physical Quality of Life Index (PQLI)
In this index three single indicators were combined together; life expectancy at birth, infant mortality and literacy rates. For each indicator the performance of individual countries were rated on a scale of 1 to 100 where 1 represents the worst and 100 the best. There was a correlation with the GDP per capita however it was not as close as might be expected.
The Human Development Index (HDI)
This index, produced by the United Nations Development Programme (UNDP), includes indicators of longevity, knowledge and income. It combines life expectancy (at birth), an average of literacy rates and number of years of education and GDP expressed in terms of its purchasing power in the domestic economy. Some countries have shown rapid economic growth but have not shown correspondingly high HDI index.
The Human Suffering Index (HIS)
The index ranks people according to the level of human suffering based on 10 measures
• Life expectancy
• Daily calorie supply
• Access to clean water
• Infant immunisation
• Secondary school enrolment
• Per capita GDP
• Rate of inflation
• Communications
• Technology
• Political freedom
• Civil rights
Human Poverty Index
The United Nations defines poverty as the "denial of choices and opportunities most basic to human development-to lead a long healthy, creative life and enjoy a decent standard of living, freedom, self esteem and the respect of others"
Whilst the Human Development Index measures the progress of the country in achieving development the Human Poverty Index is more aimed at reflecting on how the progress is distributed and the level of deprivation and poverty being experienced in the country. There are two HPI indices most commonly used. HPI-1 is a measure of absolute poverty used in Less Developed Countries and HPI-2 is a measure of relative poverty used in More Developed Countries.
HPI-1 measures poverty in Less Developed Countries. The variables used are:
• the percentage of people expected to die before age 40
• the percentage of adults who are illiterate
• deprivation in overall economic provisioning-public and private-reflected by the percentage of people without access to health services and safe water and the percentage of underweight children...