what is the difference between average income and HDI
Answers
Answer:
The average income of the per capita income is basically total income of the country upon total population of the country.
This can be used to imlpy whether a country is developed or not but it has some drawbacks because of which now Human development Index is used to know the development of a country.
The drawbacks of per capita income are:-
- It hides the disparities of the country.
- It does not show how the income is distributed among the country.
- It does not show what is the lowest income and highest income difference.
- It only tells about the average income of the country.
Hence, the concept of average income is now not considered valid for signifying the development of a country.
The Human development Index for the HDI helps helps in signifying a country is developed or non developed on the basis of four to five things.
The criterias include:-
- Health
- Education
- Income
- Public Facilities
- Sustainable Development
These are the things which implies whether a country is developed, underdeveloped and developing.
Fact:-
- The middle East countries are rich and developed by money status but are unsafe by terrorism hence they are not considered as developed countries.
- India is a developing country.
The concepts I explained here, will help you know the difference between both the concept that is average income and Human development Index easily.