INDICATORS OF

DEVELOPMENT

GROUP 2: Ganesh Jagroop

Anarisa Ramsook
Victoria Acevero
HDI
 What is HDI?

The Human Development Index (HDI) is used as a main indicator of development

since 1990 by the United Nations. The system is designed to be used to help
determine strategies for improving living conditions for people around the world.
It can be used to assess why countries with a similar gross domestic product
(GDP) have different HDI values and therefore can affect the fiscal and public
policy of a nation.
How Does HDI Measure Development?

The HDI combines Gross National Income (GNI) per capita, life expectancy and the adult
literacy rate into a score from 0 to 1 that indicates a country’s social and economic
development.

For example; a country that has an index of 0.937 means that it has a high economic, education
and healthcare status which suggests that the government of that country clearly allocates
funds towards health and education schemes.
Comparing the HDI of Trinidad and Tobago with other
Caribbean Countries

During the period between 1990 and 2019 Trinidad and Tobago experienced
different degrees of progress toward increasing their HDIs.

Currently Trinidad and Tobago has an HDI of 0.796 which is above the average of
0.753 for countries in the high human development group and above the average
of 0.766 for countries in the Caribbean. It is ranked at 67 out of 189 countries
and territories.

In the Caribbean, Trinidad and Tobago can be compared with The Bahamas and
Jamaica, which have HDIs of 0.814 and 0.734 , and are ranked at 58 and 101
respectively.
How Does HDI Hinder Development?

● HDI reflects long-term changes (e.g. life expectancy) and may not respond to
recent short-term changes.

● The HDI simplifies and captures only part of what human development entails. It
does not reflect on inequalities, poverty, human security, empowerment, etc. in a
country.
GINI Coefficient
GINI Coefficient

The GINI coefficient is a measure of inequality between socio-economic groups in a country. It

was developed by the Italian statistician Corrado Gini in 1912.

Gini index measures the extent to which the distribution of income (or, in some cases,
consumption expenditure) among individuals or households within an economy deviates from a
perfectly equal distribution.
How is The Gini Coefficient Measured?

A Lorenz curve plots the cumulative

percentages of total income received
against the cumulative number of
recipients, starting with the poorest
individual or household. The Gini index
measures the area between the Lorenz
curve and a hypothetical line of absolute
equality, expressed as a percentage of
the maximum area under the line. Thus a
Gini index of 0 represents perfect
equality, while an index of 100 implies
perfect inequality.
Trinidad and Tobago’s GINI Coefficient

Most Caribbean countries have GINI coefficients of 43 to 46. According to the World Bank,
the most recent GINI coefficient in Trinidad and Tobago was reported at 40.3 in 1992.
Limitations of the GINI Coefficient

The GINI coefficient is a simple ratio and the most common way of measuring inequality, but there are
some limitations in what it can show.

● One of the drawbacks of the coefficient is that it does not take into consideration the structural
changes in a population. Such changes can significantly influence the economic inequality in a
population.

● The Gini coefficient is prone to systematic and random data errors. Therefore, inaccurate data
can distort the validity of the coefficient.

● If GDP is rising and GINI is also increasing, it may mean that the majority are not benefiting
from a rising income. When this gap becomes large, social stratification is permanent and the
poorer groups can find it hard to get high-paying jobs, bank credit, training, healthcare or
housing.
Measures To Reduce Income Inequalities

● Increase the minimum wage

● Expand the Earned Income Tax
● Invest more in education
● Make the tax code more progressive
● Policies that encourage higher savings rates and lower the cost of building
assets for working and middle class households can provide better economic
security for struggling families.
Technology
Modern Technology in the Caribbean

Modern technology and infrastructure can affect many sectors in a country. Technology can be
used to design, manufacture or use goods and services and can also be be useful in organising
human activities.

In the Caribbean, there are some countries that do not have a fully functioning telephone
system, efficient public transport, water or electricity supply or proper port facilities.

There is often a slow response to acquiring new technology due to the high costs associated
with machines, maintenance and human resource training. As well as bureaucratic procedures
causing delays in updating the infrastructure.

Currently there is an increase in innovations and a substantially faster pace of technology

adoption. If we learn from history, it is important to enable our workforce to adapt to changes
as industries evolve.
Measures Being Taken by Caribbean Countries to
Update their Infrastructure

● The Bahamas and Jamaica have both taken steps to diversify their economies and
boost private sector development to prepare their workforce for a rapidly
changing knowledge economy.
● The Bahamas is investing in a national apprenticeships program and is
championing the establishment of sector skills councils in key strategic sectors.
● Jamaica is investing in its talent pool to better serve higher value-added options in
the global services sector.