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How is HDI a better indicator …

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How is HDI a better indicator of development than per capita income
  • 1 answers

Gaurav Seth 5 years, 4 months ago

Human development index (HDI) is a better indicator than per captia income for many reasons :

1.Any increase in the per captia income can be due to the use modern capital

intensive technology which is labour displacing in nature and thus adversely affecting the poor.

2.Per captia income ignores non material things like happiness index security health  literarcy rate etc. though they may be more important for a human it is not a reliable source of economic index.more over the distribution of the per captia income makes the rich richer and poor poorer

On the other hand human development index (HDI) computes all the things essential for a development of a country rather than focusing only on economic aspect  

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