QUESTION 1 1.1 According to the 2014 HDI report, the Maldives has an HDI of 0.69
ID: 1110843 • Letter: Q
Question
QUESTION 1
1.1 According to the 2014 HDI report, the Maldives has an HDI of 0.698 (rank of 103) and Georgia has an HDI of 0.744 (rank of 79). The per capita income of the Maldives was 10 074 and that of Georgia was 6890. Please comment and explain how this is possible. (10 marks)
1.2.1 Country A has a poverty line of z=$325. Calculate the FGT indices (P0, P1 and P2) by completing the table below.
HOUSEHOLD IDENTIFICATION
HOUSEHOLD INCOME yi
POVERTY GAP (z-yi)
SQUARED POVERTY GAP (z-yi)2
CUMULATIVE INCOME ($)
CUMULATIVE % OF HOUSEHOLDS
A
250
250
10
B
320
570
20
C
330
900
30
D
450
1350
40
E
470
1820
50
F
530
2350
60
G
800
3150
70
H
880
4030
80
I
900
4930
90
J
1200
6130
100
TOTAL
6130
FORMULA
P0=
P1=
P2=
CALCULATED FGT INDEX
P0=
P1=
P2=
1.2.2 How much would the country need to lift itself out of poverty?
HOUSEHOLD IDENTIFICATION
HOUSEHOLD INCOME yi
POVERTY GAP (z-yi)
SQUARED POVERTY GAP (z-yi)2
CUMULATIVE INCOME ($)
CUMULATIVE % OF HOUSEHOLDS
A
250
250
10
B
320
570
20
C
330
900
30
D
450
1350
40
E
470
1820
50
F
530
2350
60
G
800
3150
70
H
880
4030
80
I
900
4930
90
J
1200
6130
100
TOTAL
6130
FORMULA
P0=
P1=
P2=
CALCULATED FGT INDEX
P0=
P1=
P2=
Explanation / Answer
1. Human development index is a measure of development of an economy not from the economic or financial perspective rather than social and human development perspective.
It includes various measurement like life expectancy, birth mortality rate, years of schooling etc. It could be possible that people of an economy might be having more disposal income than peop;e of other country but the former country is not doing good at human and social indicators, thus it would be less developedin this regard.
Similarly, Georgia has better human development than Maldives in terms of life expectancy, expected years of schooling etc.
HEnce Georgia's ranking is higher than of Maldives despite of mMaldives having higher per capita.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.