Economics

• Absolute (extreme) poverty


  The condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education, and information.
• Adult literacy rate


  The percentage of people aged 15 and above who can both read and write with understanding a short simple statement about their everyday life.
• Reductionism


  The approach to studying complex systems by reducing them to simpler components that are more manageable to study.
• Biocapacity


  The capacity of an area or ecosystem to generate an ongoing supply of resources and to absorb its wastes.
• Biosphere


  The regions of the surface, atmosphere, and hydrosphere of the earth occupied by living organisms.
• Composite indicator


  A single number that combines multiple individual indicators to provide a comprehensive view of a complex concept or phenomenon.
• Degrowth


  A political, economic, and social movement that advocates for the downscaling of production and consumption to increase human well-being and enhance ecological conditions.
• Ecological footprint (EF)


  A measure of human demand on the Earth's ecosystems, representing the amount of biologically productive land and sea area required to provide the resources a population consumes and to absorb the waste it generates.
• Enhanced capabilities


  The ability of individuals to lead a life they value and have reason to value, encompassing various dimensions such as health, education, political freedom, and economic opportunities.
• Expected years of schooling

  The total number of years of schooling a child of school entrance age can expect to receive, assuming that the probability of his or her being enrolled in school at any particular future age is equal to the current enrollment ratio at that age.
• Gender Inequality Index (GII)


  A composite measure reflecting gender-based inequalities in three dimensions: reproductive health, empowerment, and economic status.
• Gender pay gap


  The difference between male and female earnings expressed as a percentage of male earnings.
• Gender ratio for mean years of schooling

  The ratio of the average number of years of education received by females to that received by males.
• Greenhouse Gases


  Gases that trap heat in the Earth's atmosphere, contributing to the greenhouse effect and global warming.
• Happy Planet Index (HPI)


  An index that measures sustainable well-being for all.

  - average subjective life satisfaction

  - life expectancy at birth

  - ecological footprint per capita
• Human Development Index (HDI)

  A composite index measuring average achievements in three basic aspects of human development.

  - health (life expectancy at birth)

  - education (mean years of schooling and expected years of schooling)

  - standard of living (GNI per capita).
• Inequality-adjusted Human Development Index (IHDI


  A modification of the HDI that accounts for inequality in each of the three dimensions of the HDI by 'discounting' each dimension's average value according to its level of inequality.

  - education (mean years of schooling and expected years of schooling)

  - standard of living (GNI per capita).
• Indicator


  A variable that provides information about a specific aspect of a phenomenon or situation.
• Infant Mortality Rate


  The number of deaths of infants under one year old per 1,000 live births in a given year.
• Informal Sector


  Economic activities that are not regulated or protected by the government, often characterised by irregular employment and lack of social protection.
• Life Expectancy at Birth

  The average number of years a newborn is expected to live, if current mortality rates remain constant.
• Mean Years of Schooling

  The average number of years of education received by people aged 25 and older.
• Relative Poverty


  A condition where people lack the minimum amount of income needed in order to maintain the average standard of living in the society in which they live.
• Single Indicator


  A measure that provides information on a single aspect of a complex phenomenon or concept.
• Multidimensional Nature of Economic Development

  Economic development involves improvements in various aspects.

  - income

  - health

  - education

  - environmental sustainability

  - social progress

  - environmental quality

  - individual well-being
• Relationship Between Economic Growth and Development

  Economic growth refers to an increase in the production of goods and services in an economy, often measured by GDP.

  
  

  Development encompasses broader improvements in well-being, including social, environmental, and individual aspects.

  
  

  While economic growth can contribute to development by providing resources, it does not guarantee overall progress in all dimensions of well-being.
• GDP and GNI per capita STRENGTHS in measuring economic development

  - Economic wellbeing

  - Simple, Clear

  - International Comparison
• GDP and GNI per capita LIMITATIONS in measuring economic development

  SINGLE INDICATOR

  - Equity

  - Sustainability

  - Only shows market activities
• Health and Education Indicators STRENGTHS in measuring economic development

  - Sustainability

  - Equity
• Health and Education Indicators LIMITATIONS in measuring economic development

  SINGLE INDICATOR

  - Economic wellbeing

  - Difficult to compare
• Economic/ Social Inequality Indicators STRENGTHS in measuring economic development

  - Equity

  - Economic wellbeing

  - Highlights disparities
• Economic/ Social Inequality Indicators LIMITATIONS in measuring economic development

  SINGLE INDICATOR

  - Sustainability

  - Does not focus on development

  - Difficult to compare
• Energy Indicators STRENGTHS in measuring economic development

  - Sustainability

  - Links economic growth with energy use and efficiency
• Energy Indicators LIMITATIONS in measuring economic development

  SINGLE INDICATOR

  - Economic Wellbeing

  - Equity

  - Limited scope
• Environmental Indicators STRENGTHS in measuring economic development

  - Sustainability

  - Indicates environmental quality.
• Environmental Indicators LIMITATIONS in measuring economic development

  SINGLE INDICATOR

  - Economic Wellbeing

  - Equity

  - Limited scope

  - Difficult to measure
• Human Development Index (HDI) STRENGTHS in measuring economic development


  COMPOSITE INDICATOR

  - Economic wellbeing

  - Sustainability

  - Combines multiple dimensions (health, education, and income),

  - International comparison
• Human Development Index (HDI) LIMITATIONS in measuring economic development

  - Equity

  - Over-simplification
• Inequality- adjusted Human Development Index (IDHI) STRENGTHS in measuring economic development


  COMPOSITE INDICATOR

  - Inequality

  - Economic wellbeing

  - Sustainability

  - Highlights the impact of inequality on economic development.
• Inequality- adjusted Human Development Index (IDHI) LIMITATIONS in measuring economic development


  - Data is difficult to obtain

  - Over-simplification