Human Development Index (HDI): Including Economics and Development (AP Human Geography)

Summary

The Human Development Index (HDI) is a measure used to compare the development levels of countries, specifically developed (MDCs) versus developing countries (LDCs). It evaluates three main factors: a decent standard of living, a long and healthy life, and access to knowledge. The script breaks down key elements like GDP, GNI, and PPP in measuring economic structure, education access, and life expectancy. It highlights the growing gap between rich and poor countries in terms of access to goods, education, and healthcare, emphasizing the role these factors play in national development.

Takeaways

• 🌍 The Human Development Index (HDI) is used to compare the development levels of countries, particularly more developed countries (MDCs) versus less developed countries (LDCs).
• 📊 The HDI is a scale that aims to measure development, with a maximum score of 1 or 100, and no country has reached the perfect score.
• 💸 One of the key components of HDI is the standard of living, which is measured by income, economic structure, and productivity.
• 🏭 Economic structure is divided into three categories: primary (extraction of raw materials), secondary (processing), and tertiary (services).
• 📈 Productivity plays a role in standard of living, with developed nations having better technology and machinery, leading to higher output and lower production costs.
• 🎓 Access to knowledge is another factor in HDI, focusing on years of schooling, expected years of education, and student-teacher ratios.
• 📖 Literacy rates are near 100% in developed countries, while developing countries struggle with lower literacy rates, sometimes hindered by foreign language manuals.
• 🏥 Life expectancy is higher in developed countries (around 80 years) compared to sub-Saharan Africa (57 years), with access to healthcare being a key factor.
• 🚗 Wealth indicators include access to consumer goods like cars, phones, and computers, with richer countries having more access to these products, widening the development gap.
• 💡 The HDI uses three main factors: standard of living, access to knowledge, and health to evaluate the development levels of countries.

Q & A

What is the Human Development Index (HDI)?

The Human Development Index (HDI) is a metric used to compare the level of development between countries. It assesses countries on a scale from 0 to 1 (or 100) based on three major factors: standard of living, life expectancy, and access to education.

What are the three main factors that the HDI considers when evaluating a country’s development?

The three main factors of HDI are: (1) a decent standard of living, (2) the ability to live a long and healthy life, and (3) access to knowledge or education.

How does HDI measure standard of living?

HDI measures standard of living through indicators like income, economic structure (primary, secondary, and tertiary sectors), and productivity. Income is evaluated using GDP, GNP, GNI, and PPP to assess the wealth of a country and its ability to provide for its citizens.

What is the difference between GDP and GNP?

GDP (Gross Domestic Product) represents the total value of goods and services produced within a country's borders, while GNP (Gross National Product) includes GDP plus the value of goods and services produced by that country’s citizens abroad.

What does PPP (Purchasing Power Parity) mean, and how is it relevant to HDI?

Purchasing Power Parity (PPP) examines the amount of money needed in one country to purchase the same goods or services in another. It helps compare the relative cost of living and the economic productivity of different countries, which is important for evaluating their standard of living.

How does HDI assess access to knowledge?

HDI measures access to knowledge by looking at factors like the average years of schooling for individuals aged 25 and older, expected years of schooling, student-to-teacher ratios, and literacy rates in a country.

Why is education an important factor in the HDI?

Education is crucial for development because it improves a person’s ability to contribute to the economy, helps drive innovation, and improves the overall quality of life in a society. Countries with higher education levels typically have better HDI rankings.

What is the role of life expectancy in the HDI?

Life expectancy is used as a measure of the overall health and well-being of a population. Longer life expectancy in developed countries reflects better access to healthcare, sanitation, and resources, while shorter life expectancy in developing countries may indicate poverty, lack of healthcare, and malnutrition.

What does the HDI reveal about the gap between rich and poor countries?

The HDI highlights the growing gap between developed and developing nations. Rich countries often have better access to consumer goods, healthcare, and education, while poorer countries struggle to meet basic needs, which widens the disparity in development.

How does productivity factor into HDI evaluations?

Productivity is key to HDI as it looks at how efficiently a country can produce goods and services. Developed countries with advanced technologies and machinery can produce more at a lower cost, which contributes to a higher standard of living.

Outlines

00:00

🌍 What is the Human Development Index (HDI)?

The Human Development Index (HDI) is a measure designed to compare the development levels of countries. It ranges from 0 to 1, with higher values indicating better development. No country reaches a perfect score, but developed nations like those in North America score around 0.92, while countries like Nigeria score lower (around 0.5). The HDI is determined by three main factors: standard of living, life expectancy, and access to knowledge.

05:01

💰 Measuring Standard of Living: Income, Economic Structure, and Productivity

The first key factor of HDI is a decent standard of living, assessed through three subcategories: income, economic structure, and productivity. Income is measured by GDP (all goods/services produced within a country), GNP (includes production on foreign soil), GNI (accounts for investments), and PPP (purchasing power parity). The economic structure includes primary (extraction-based), secondary (processing-based), and tertiary (service-based) sectors. Productivity is also critical, as more developed countries have access to technology and machines, lowering costs and increasing output compared to less developed countries.

🎓 Access to Knowledge: Education Levels and Schooling

The second factor in HDI is access to knowledge, which is primarily assessed by educational attainment. Developed countries have higher years of schooling (around 11.5 years on average for those aged 25 and older), while developing nations, particularly in sub-Saharan Africa, have significantly lower averages (around 4.7 years). The expected years of schooling in developed nations is about 16.3, compared to around 9-10 years in less developed regions. Other important factors include student-teacher ratios and literacy rates, which are significantly higher in developed countries.

🏥 Health and Wealth: Life Expectancy and Consumer Goods

The third factor of HDI covers health and wealth, with life expectancy being a primary indicator. In developed countries, the average life expectancy is 80 years, while in sub-Saharan Africa it is much lower, around 57 years. This gap is due to differences in access to medical care. Wealth is also measured through access to consumer goods like cars, phones, and computers, which are more prevalent in wealthier nations. The increasing disparity between rich and poor countries is further highlighted by their ability to afford these goods, contributing to the widening development gap.

Keywords

💡Human Development Index (HDI)

The Human Development Index (HDI) is a composite measure used to assess the level of development in countries. It includes three key components: standard of living, access to knowledge, and life expectancy. The HDI helps compare developed (MDCs) and developing countries (LDCs), with the ideal score being as close to 1.0 as possible, representing the highest level of development.

💡Standard of Living

This refers to the economic level at which people in a country live, including factors such as income, economic structure, and productivity. The video breaks this down into the assessment of GDP, GNP, and GNI to evaluate the standard of living in various countries, with wealthier nations having a higher standard of living than poorer ones.

💡Gross Domestic Product (GDP)

GDP is the total value of goods and services produced within a country's borders over a specific time period. It reflects the economic productivity of a nation, and is used as a key indicator in determining its development level. For example, a country’s GDP includes all products made on its soil, such as cars or electronics.

💡Gross National Product (GNP)

GNP is the total economic output of a country, including both goods produced domestically and those produced abroad by its companies. It includes items like products made by American companies in other countries, such as Nike manufacturing goods in Vietnam. GNP helps gauge a country’s global economic presence.

💡Gross National Income (GNI)

GNI expands on GNP by including the net income from investments, such as profits from foreign investments. It accounts for the total domestic and international income of residents and businesses, reflecting a country’s overall economic standing, including money that flows into and out of the country through investments.

💡Purchasing Power Parity (PPP)

PPP is a comparison of what it costs to purchase the same goods or services in different countries. It helps assess the relative cost of living and inflation. For instance, comparing the cost of a Big Mac in the U.S. to its cost in Germany gives insight into how far a person’s income can go in different countries.

💡Access to Knowledge

Access to knowledge refers to the educational opportunities available in a country, measured by factors such as average years of schooling and literacy rates. Developed nations tend to offer more years of schooling and have better teacher-to-student ratios, contributing to higher literacy and better development prospects.

💡Life Expectancy

Life expectancy measures the average number of years a person is expected to live in a particular country, reflecting the overall health and healthcare quality. Developed countries tend to have higher life expectancies (around 80 years), while less developed regions like sub-Saharan Africa have much lower averages.

💡Economic Structure

Economic structure describes the distribution of employment across different sectors: primary (e.g., farming, mining), secondary (e.g., manufacturing), and tertiary (e.g., services). Countries with more developed economies often have larger tertiary sectors, whereas developing nations might rely heavily on primary industries.

💡Productivity

Productivity is the efficiency of production in a country, often higher in developed nations due to access to advanced technology and machinery. In less developed countries, workers often rely on manual labor, leading to lower productivity. For example, U.S. workers can produce goods more efficiently than workers in many developing nations.

Highlights

The Human Development Index (HDI) is used to compare developed and developing countries based on their level of development.

HDI is based on three main factors: standard of living, life expectancy, and access to knowledge.

Countries are measured on a scale that aims to reach 1 or 100, with developed countries like those in North America scoring around 0.92, while Nigeria scores 0.5.

A decent standard of living is evaluated by income, economic structure, and productivity.

Gross Domestic Product (GDP) measures goods and services made within a country's borders, whereas Gross National Product (GNP) includes international production by a country's companies.

Gross National Income (GNI) adds money from investments to GNP, and Purchasing Power Parity (PPP) compares the cost of goods across countries.

Economic structure is divided into primary (extraction, like farming or mining), secondary (processing goods), and tertiary (services, like sales).

Productivity is influenced by technology, with more developed nations producing goods more efficiently due to automation.

Access to knowledge includes years of schooling, with developed countries having higher averages compared to developing regions like Sub-Saharan Africa.

The student-teacher ratio and literacy rate also influence education, with wealthier countries having smaller class sizes and near-100% literacy rates.

Life expectancy in developed countries is about 80 years, while in Sub-Saharan Africa it's around 57 years, largely due to differences in healthcare access.

Infant mortality rates are significantly lower in developed countries, where 99.5% of infants survive.

Access to consumer goods like cars, phones, and computers is a marker of wealth, with richer countries having far more access to these technologies.

The gap between rich and poor countries is widening, with poorer countries struggling to afford consumer goods necessary for economic growth.

The conclusion emphasizes the importance of standard of living, education, and health as key factors in determining a country's HDI and overall development.

Transcripts

HDI Human Development Index what is it

what do we use it for what's its purpose

stick around and I'll help explain it to

you

[Music]

so the purpose of this Human Development

Index is to compare developed countries

or MDC's versus developing countries or

LDCs

so exactly what is it it's a scale

trying to max out at one or a hundred

comparing the level of development so

countries in North America are at 0.92

whereas in Nigeria there's 0.5 - now

nobody is a perfect 100 percent or a 1

but you're trying to get as close to

that as possible the United Nations came

up with three factors to help determine

this HDI first of all do you have a

decent standard of living

second of all can you live a long and

healthy life and third of all is access

to knowledge so let's break down each

one of these factors and explore more

[Music]

[Applause]

all right so a decent standard of living

is broken down into three sub categories

to figure out do you have a decent

standard of living

the first is income the second is

economic structure and the third is

productivity so let's break each one of

these factors down and take a look at

them more in debt so there are four

parts of income that we look at when

trying to determine the development of a

country the first is GDP this is the

most simple one this is all the goods

and services made in a country within

its borders so if you make a car in your

borders if you make a globe within your

borders anything that's made on your

soil in a country counts as your GDP

another factor that's looked at is GNP

or gross national product this is the

GDP plus whatever a country makes on

somebody else's soil so in the case of

the United States we get to claim

everything made on our soil with GMP but

we also get to claim what Nike makes in

Vietnam so anything value that Nike

makes or another company makes in

another country we get to claim that as

well

[Music]

[Applause]

all right we've got two more to take a

look at we got gni which is gross

national income and this is like GNP or

GDP plus all the money that's being paid

through investments so any money coming

into the country with an investment in

any money leaving the country with

investments that counts it in gni a

fourth one is PPP or purchasing power

parity it's a great tongue twister but

it also examines the amount of money

needed in one country to purchase the

same good or service in another country

so it's basically how much does a Big

Mac cost in America and how much does it

cost in Germany or France and you

compare how much it costs more in one

country or the other is same with like

Nikes how much does at Nike cost in

America how much does it cost in another

country and you compare it and then that

way you can also examine a country's

economy

[Music]

now I'm talking about a decent standard

of living we have to look at economic

structure and there's three different

types of economic structure we're going

to focus in on the first is primary this

is when you extract things from the

earth so this is miners and farmers it's

anytime your hands are dealing with

though earth the next one is secondary

this is processing so this is basically

when you're canning a product that was

farmed or this is where you're

processing the iron ore into steel the

third major economic structure we're

going to look at is tertiary and this is

where we talk about services this is

selling the products that were created

so this is a car salesman this is a

clerk at a supermarket it's anybody

that's providing a service to other

people the last part of a decent

standard of living we're going to look

at is productivity see workers and

developed nations have robots and

machines that help them make goods so

they can make a lot more in a cheaper

price then say a country in sub-saharan

Africa where they do a lot more by hand

that leads us to the last part of

productivity and that's value-added

value-added means the value of a product

- the raw materials and energy so when

we look at how much it costs to produce

something per hour in America it's

usually 67 dollars whereas in Mexico at

16 dollars so that's why a lot of goods

are made in Mexico or China versus

building them in the United States

it's a company's way of making something

cheaper

[Music]

so the second item we're going to look

at is access to knowledge and when we

look at development is much more than

just wealth it's about education it's so

very important the UN looks at a lot of

data one of the first things they look

at is they take twenty five year olds

and older and they look at how many

years of schooling that they have so

when we look at developed countries like

Germany Canada United States it's about

eleven and a half years per person but

when we go to sub-saharan Africa it's

only about four point seven years of

schooling that you have and again

knowledge is very important having an

education is very important in

development a second thing that's looked

at is the expectation of how many years

of schooling in developed countries are

expected to go on average sixteen point

three years where in developing

countries it's much lower and places

like South Asia it's about ten point two

years of schooling and places in

sub-saharan Africa you're only expected

go to school for nine point three so

again many more years are expected in

developed countries

[Music]

a third item that the United Nations

looks at is student per teacher ratio so

they take how many students who have

enrolled in a school and divide it by

how many teachers wealthier countries

tend to have a smaller classroom setting

although I know a lot of students and

teachers in America would totally argue

that that is not necessarily always true

a fourth thing that the United Nations

looks at is literacy rate literacy rate

in developed countries is near a hundred

percent usually over 99% developing

countries already having problem with

literacy and then what we see is another

problem is a lot of their technical

manuals are written in English or a

foreign language so not only do they

have a lower literacy rate but manuals

that they need to run machinery or to

run computer systems are written in

another language and that holds back

development

[Music]

third part of HDI we're going to look at

is health and wealth when we're talking

about help the first thing we want to

look at is life expectancy around the

world it's about 71 years of age in

developed countries it's 80 years of age

but in sub-saharan Africa Falls all the

way down to 57 years old much of this

reason is because in developed countries

we have a lot more access to medicines

and better access to doctors infants

live 99.5% of the time in developed

countries whereas in developing

countries they only live 94% of the time

and much of that is due to because of

now malnutrition dehydration illness and

diarrhea so the second part of health

and wealth is the wealth part let's look

at consumer goods especially

transportation and communication when we

look at transportation we want to talk

about cars cars really help determine

the wealth of a country they're

expensive first of all but they also

allow us to move around and be able to

buy goods and services or to get us to a

concert of a really lame boy band phones

are very important especially we talk

about cell phones and smart phones they

help determine the wealth of a country

they also allow us to communicate much

more effectively which boosts our

economy or they allow us to get on to a

snapchat or Twitter and see what kind of

crazy things our friends are doing in

class another factor is computers

computers are expensive but they also

help with business the more computers

the better off your economy is it also

allows us to get on the internet and

look at funny cat videos so the gap

between the rich countries and the poor

countries is widening and it's getting

worse and worse poor countries not only

are struggling just to try to find food

and to boost their economy they can't

afford these goods while rich countries

can and that just continues with their

development so there you have it in

conclusion we have looked at three

factors that have to do with HDI in the

development of countries