The Value of the Human Development Index
September 4, 2009 § Leave a comment
Economic growth is the increase in the productive potential of economy which is investigated by the level of output over a period of time; Economic development is the improvement in lives of all people in the country. Economic development is not a factor of economic growth. This component increase availability, widen distribution of life-sustaining goods, raise levels of individuals, and expand the range of economic and social choices, which we all can call as a whole, the Human Development Index. The HDI, or the Human Development Index is used to rank countries by the level of the human development that the UNDP (United Nations Development Program. This figure is given by “life expectancy, literacy, educational attainment, and GDP per capita” all put together (Wikipedia, 2009).
The important of the Human Development Index is that it determines whether the well being of people in that nation in overall, is good or not. GDP, inflation, or stock markets are surely the indicators of the economy, which indicates economic growth, but human capabilities must be improved in order for the nation to grow as well.
In Indonesia, the HDI value is 0.711, ranked 108 in the worldーnot very high in the world. According to the CIA World Factbook, the reason for this figure is due to the “current issues includ[ing]: alleviating poverty, improving education, preventing terrorism, consolidating democracy after four decades of authoritarianism, implementing economic and financial reforms, stemming corruption, holding the military and police accountable for past human rights violations, addressing climate change, and controlling avian influenza”(CIA, 2009).