Can you spot the link between this and today’s lesson?

Human Development Index

What factors indicate an economy’s

success rates?infant mortality

educationsanitation

health

clean air

clean water

percentage of energy from renewable resources

diversity of species

income distribution

incidence of stress related disease.

rate of population growth

literacy

share of raw materials being recycled

Political freedom

Infrastructure

Life expectancy

Medical care

In small groups…use the cut-out’s…..

• Sort these categories into what you feel are the most to least important factor of measuring an economy’s success rates.

• Use a Diamond shape for your priorities…

What have

you included….?

3.5_ HDI list for activity.xls

Watch this….

http://undp.edgeboss.net/wmedia/undp/hdro/hd/peoplefirst/stream/people_first_high.wvx

What is HDI?• HDI – Human Development Index

• It is a UN measure of a country’s development

• It gives countries a value between 0 and 1 on THREE key factors

• Resources Knowledge

• Life Span

Need to

know this for

exam.

HDI - Resources

• Measures in GDP in PPP$

Territory size shows the proportion of worldwide Gross Domestic Product measured in US$ equalized for purchasing power parity in 2015.

Purchasing Power Parity (PPP)

• Purchasing power - differences in the cost of living between countries

• A hypothesis that the long run changes in exchange rates are caused by differences in inflation rates between countries

http://www.citymayors.com/economics/expensive_cities2.html

Burgernomics…

• Burgernomics is based on the theory of purchasing-power parity (PPP), the notion that a dollar should buy the same amount in all countries.

• Thus in the long run, the exchange rate between two countries should move towards the rate that equalizes the prices of an identical basket of goods and services in each country.

• Our "basket" is a McDonald's Big Mac, which is produced in about 120 countries. The Big Mac PPP is the exchange rate that would mean hamburgers cost the same in as abroad.

• Comparing actual exchange rates with PPPs indicates whether a currency is under- or overvalued.

HDI Knowledge

• Literacy• School enrolment

HDI Life Span

• Life expectancy

Child Mortality

HDI Life Span

Life expectancy &

Child Mortality

• “The child mortality rate—the number of under-fives dying per thousand live births—dropped by almost a quarter worldwide between 1990 and 2006. …

• Progress in sub-Saharan Africa, where the death rate is highest, has been slower.

• Around one in six children in the region still die before the age of five and the rate is rising in some countries.

• Pneumonia, diarrhoeal diseases and malaria together account for more than two-fifths of child deaths.” From The Economist

picture by Kevin Carter, winner of the 1994 Pulitzer Prize

So which countries would you put in your top 5 and bottom 5 under HDI stats?

1. Iceland2. Norway3. Canada4. Australia5. Ireland

175. Mozambique176. Liberia177. Congo, Dem. Rep.178. Central African Republic179. Sierra Leone

These were Oct 2008 data!

Your task….• Using the spreadsheet

• Select one country which is in the HDI measures from one category….

• High • Medium• Low

• Create a ‘one page’ slide / poster to show their HDI economic data (A3 size)

• Include relevant economic / HDI statistics from the country

Always place the data in context…. Link to 1st closest &

worst set of data

Include the 3 categories

for HDI

HDI latest statistics - 2008

Ideas for research / Poster

• After looking at HDI statistics

• Use Google – type in country’s name

• Look at the Tourist board links – they tend to show the wealthiest parts of the country!

• Use Wikepedia (!) as a base for further research

• Try Flickr for amazing inspirational images (cut/paste & crop)

Need to make your work eye

catching &

inspirational

Homework

• Complete your research on your one country.

HDI – Human Development Index

• Do you know the three components of HDI and can you interpret HDI data.

• Do you know a definition of Purchasing Power Parities (PPP$)

• Next lesson we will aim to understand the advantages and limitations of HDI in making comparisons of living standards between countries.