ECS3707 Assignment 3
(COMPLETE ANSWERS)
Semester 2 2024 (895997) - DUE
17 September 2024
, Question 1: Economic Metrics vs. Multidimensional Measures
1.1 Key Components and Methodologies: GDP per capita, HDI, and MPI
GDP per capita: Measures total economic output divided by the population. It captures
economic wealth and average income but does not consider inequality or well-being.
HDI: Combines life expectancy, education (mean and expected years of schooling), and
income (GNI per capita). It captures broader aspects of human development.
MPI: Measures poverty by considering education, health, and living standards, focusing on
deprivation in multiple areas.
Comparison:
GDP per capita focuses solely on economic output.
HDI is broader, incorporating education and health alongside income.
MPI measures multidimensional poverty, emphasizing deprivation beyond income.
GDP is economic-centric, while HDI and MPI provide more holistic insights into development.
1.2 Strengths and Limitations of GDP per capita (Amartya Sen’s Capability Framework)
Strengths: Easy to calculate, widely available, indicates general economic health.
Limitations: Ignores inequality, does not measure well-being or freedoms. From Sen’s
perspective, GDP per capita only reflects the means to achieve well-being, not the actual
capabilities or freedoms individuals possess.
GDP per capita fails to capture substantive freedoms (e.g., access to healthcare, education),
which Sen argues are crucial for true development.
1.3 HDI and MPI in Relation to the Capability Approach
HDI and MPI align more with Sen’s capability approach by incorporating education, health,
and standards of living.
HDI offers a broader view of capabilities (e.g., life expectancy and education).
MPI measures deprivations in basic capabilities.
These indices provide a more comprehensive view of human well-being than GDP per capita.
(COMPLETE ANSWERS)
Semester 2 2024 (895997) - DUE
17 September 2024
, Question 1: Economic Metrics vs. Multidimensional Measures
1.1 Key Components and Methodologies: GDP per capita, HDI, and MPI
GDP per capita: Measures total economic output divided by the population. It captures
economic wealth and average income but does not consider inequality or well-being.
HDI: Combines life expectancy, education (mean and expected years of schooling), and
income (GNI per capita). It captures broader aspects of human development.
MPI: Measures poverty by considering education, health, and living standards, focusing on
deprivation in multiple areas.
Comparison:
GDP per capita focuses solely on economic output.
HDI is broader, incorporating education and health alongside income.
MPI measures multidimensional poverty, emphasizing deprivation beyond income.
GDP is economic-centric, while HDI and MPI provide more holistic insights into development.
1.2 Strengths and Limitations of GDP per capita (Amartya Sen’s Capability Framework)
Strengths: Easy to calculate, widely available, indicates general economic health.
Limitations: Ignores inequality, does not measure well-being or freedoms. From Sen’s
perspective, GDP per capita only reflects the means to achieve well-being, not the actual
capabilities or freedoms individuals possess.
GDP per capita fails to capture substantive freedoms (e.g., access to healthcare, education),
which Sen argues are crucial for true development.
1.3 HDI and MPI in Relation to the Capability Approach
HDI and MPI align more with Sen’s capability approach by incorporating education, health,
and standards of living.
HDI offers a broader view of capabilities (e.g., life expectancy and education).
MPI measures deprivations in basic capabilities.
These indices provide a more comprehensive view of human well-being than GDP per capita.
