please help I need to see your opinion ecnomecs ?
Different countries have dramatically different levels of economic development. One common measure of economic development is a country’s gross national income per head of population (GNI). To account for cost of living differences between countries, GNI can be adjusted by purchasing power. A purchasing power parity (PPP) adjustment allows for a more direct comparison of living standards in different countries. A drawback of both GNI and PPP data is that they provide only a static picture of development.
Nobel Prize winning economist Amartya Sen has argued that development should be assessed less by material output and more by the capabilities and opportunities that people enjoy. Sen’s ideas have been picked up by the United Nations and are reflected in the Human Development Index (a United Nations developed index based on life expectancy, education attainment, and whether average incomes are sufficient to meet the basic needs of life in a country). The index was developed to gauge a country’s economic development and likely future growth rate.
Evaluate countries by GNI per capita (GNI per person) and human development and social progress indexes using the links below. Can GNI be an indicator by itself for economic well being?
How policy makers can use different indicators (Human Development Index, Social Progress Index) in addition to GNI to improve economic and social development?
- OiyLv 61 month ago
Why don‘t you use HDI to measure the level of development. The other alternative is the Bhutan index. The difference is how to measure happiness. But internationally, HDI is the only option.
- ZirpLv 71 month ago
There is no real Nobelprize for economics
- NancyLv 71 month ago
Can GNI be an indicator by itself for economic well-being?
Yes. The operative word is "indicator." An indicator points at something else and provides a measure that you can use to identify trends. Statistically, there is a strong direct relationship between GNI and economic well-being. That means that most of the time, as GNI goes up, economic-well being goes up. So it can be an indicator by itself as that's excatly what it was designed to do. But just because it can be doesn't mean it always is, doesn't mean that it's 100% reliable. That's why Sen makes her suggestions, because it can be an indicator but isn't always an indicator, highlighting how it can be unreliable an making suggestions about how to get a fuller, more reliable picture by not just using that one indicator but also using other indicators.
How can policy makers use different indicators (Human Development Index, Social Progress Index) in addition to GNI to improve economic and social development?
As I explained above, the use of different indicators in addition to GNI helps paint a more complete and more reliable picture of a country's economic and social development. Of course, policy makers can't use indicators to improve anything because indicators don't create jobs or produce goods or services or make economy or build houses or feed people or or clothe people or educate a workforce or provide healthcare to keep a workforce working effectively and efficiently or develop society, but what policy makers can do is use different indicators in addition to GNI to get an idea where a country is in its economic and social development, which is key because if you ever want to get somewhere, you first have to know where you are, like if I want to go home, but I have no idea where I am, I won't how to get there from here, so if I start walking before figuring out where I am, I'm bound to just wander around lost and may never get home. So policy makers, in order to make policies that will chart the course to get a country to the improved level of development they want it to be economically and socially, in order to make policies that when implemented have any hope of actually arriving the country at that improved economic and social development, they must first know what the current situation is, make the best estimate of where the country is starting from. That's what policy makers can use different indicators in addition to GNI for. After that, they then can continue to use them to monitor the country's course and see if the policies are working to get the country to the level of improved economic and social development or if the policies are failing to progress the country towards it or if the policies are even possibly steering the country off course and then respond accordingly policy-wise.