1.

What are some additional strengths and weaknesses of the Human Development
Index as a comparative measure of human welfare? If you were designing the HDI,
what might you do differently, and why?
➢ The strengths of HDI as a comparative measure of human welfare:
○ The Human Development Index is widely accepted worldwide.
○ It does not solely depend upon the levels of income of the country; rather
it takes into accounts all those dimensions on which the development of a
country depends.
○ It provides the analysis of required actions to be taken in different sectors
so as to increase economic development.
➢ The weaknesses HDI as a comparative measure of human welfare:
○ The data provided by the countries for calculating the Human
Development Index might not be accurate.
○ For measuring literacy levels, it uses the total number of schooling years
instead of measuring the level of schooling.
○ The dimensions it uses to measure the development status are highly
correlated. So this can serve the objective of comparing development
levels among different countries.
The indicators of Human Development Index which are the real income, health and education
are highly influential yet considered to be deeply flawed or weak because it does not reflect the
overall well being. That’s why if I were designing the HDI, I would enhance the choice of
indicators and focus on the importance of considering many other factors or ways of measuring
it. For example, I will change the way in which education level in a country is measured. Instead
of using the years of schooling, the HDI should rely on the quality of education which students
are gaining.

2. Do you think that there is a strong relationship among health, labor productivity,
and income levels? Explain your answer.
➢ I think there is a strong relationship among health, labor productivity and income
levels, because health is an essential form of human capital and physical
development. This means that a healthy individual is highly productive and
provides efficient labor, which in turn leads to an increase in the income levels
and improved living standards. For example, for an individual to be productive,
they have to be healthy, because healthy individuals enhance their labor
productivity by increasing their capability in both mental and physical. Good
health is also attributed to higher income levels, which means that financially
stable individuals can afford a healthier lifestyle. That is why we need to have a
good working balance as these three are dependent on each other.
 3. State five characteristics of the developing world. Discuss diversity within the
developing world on these characteristics in relation to the developed world.
➢ Five characteristics of the developing world are:
○ Lower Levels of Living and Productivity
○ Lower Levels of Human Capital
○ High Population Growth Rate
○ Greater Social Fractionalization
○ Lower Levels of Industrialization

Lower Levels of Living and Productivity. There is still a major difference in productivity
between developed countries like the United States and developing countries. The developing
countries are themselves a very diverse group with greatly differing development challenges. The
gap in productivity largely corresponds to large gaps in output per capita between countries.
However, there is no necessary correlation between country size measured either by population
or by area and economic development. This is because each has different advantages or
disadvantages which could offset each other. Lower Levels of Human Capital. The developing
countries lagged its average levels of nutrition, health and education compared to the developed
countries. But despite the progress of some developing countries, South Asia contonius to have
high levels of illiteracy, lower schooling attainment, and undernourishment. High Population
Growth Rate. Compared to developed countries which have much lower population growth
rates, sometimes below replacement levels, is very different from developing countries because
most population growth has been centered in those countries. Also in developing countries public
support for children is very limited so dependency has a further magnified impact in developing
countries, in contrast to the developed countries. Therefore, not only are developing countries
characterized by higher rates of population growth, but they must also have to deal with greater
dependency burdens than rich nations. Greater Social Fractionalization. Developing countries
often have ethnic, linguistic, religious, and other forms of social divisions sometimes known as
fractionaliation. This is sometimes associated with civil strife and even violent conflict which
can lead developing societies to divert considerable resources to working for political
accommodations or national consolidation. The important point is that whether ethnic and
religious composition or diversity of a developing nation leads to conflict or cooperation can be
important determinants of the success or failure of development effort. Lower Levels of
Industrialization. Industrialization is associated with high productivity and incomes and has
been the hallmark of modernization and economic development. As a result, most developing
countries have made industrialization a high national priority. Generally developing countries
have a higher share of employment in agriculture than in developed countries. This is primarily
because developed countries are continuing their secular trend to switch from industry to service
sector employment. Along with lower industrialization, developing countries tend to have a
higher dependence on primary exports.