Calculating the Human Development Index

Topics: Poverty, Economic inequality, Purchasing power parity Pages: 3 (732 words) Published: February 18, 2013
“More Than 1 Billion People Are Hungry in the World”

Poor gets poorer, rich gets richer
So the poor do not seem to want to eat much more even when they can. Indeed, they seem to be eating less. So could it be that eating more doesn't actually make us particularly more productive, and as a result, there is no nutrition-based poverty trap?  So perhaps there aren't a billion "hungry" people in the world after all. So it shouldn't surprise us that the poor choose their foods not mainly for their cheap prices and nutritional value, but for how good they taste. 

“More or less”
Gini index measures inequality
Brazil: inequality worldly-famous
The view that income inequality harms growth—or that improved equality can help sustain growth—has become more widely held in recent years. Although increasing importance of human capital in development (inequality is good), now that human capital is scarcer than machines, widespread education has become the secret to growth. 1inequality is the result of a race between technology and education. 2 Governments can stop using higher taxes and social transfers to redistribute some of the higher incomes earned by skilled workers. (institutional change) 3 changing social norms. In the past, society frowned on huge pay gaps between, say, a company’s chief executive officer and its workers. 4globalisation The data for the calculation of global inequality come from individual countries’ household surveys, but they have to be complemented by an adjustment factor to convert national incomes into an international “currency” that has the same purchasing power in all countries of the world. Adjusted using PPP (purchasing power parity). Rising inequality within each country increases global inequality, but high rates of real income growth in poor countries, and especially in the gigantic countries like China and India, reduce global inequality. Global inequality seems to have declined from its high plateau of about 70 Gini points in...
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