Question

In what aspects is the UNDP’s criteria for measuring development different from the World Bank’s criteria?

Hint:

The key difference between UNDP and the World Bank lies in their approach: the UNDP emphasizes human development (health, education, and standard of living), while the World Bank focuses on economic growth and income indicators.

Answer 1

The UNDP (United Nations Development Programme) and the World Bank both measure development, but their criteria and approaches are different in several key aspects.
1. Human Development Index (HDI) vs. Economic Growth:
- The UNDP uses the Human Development Index (HDI) to measure development, which is a composite index that includes three key dimensions:
health (life expectancy), education (mean years of schooling and expected years of schooling), and standard of living (GDP per capita). The emphasis is on the quality of life and human well-being. - In contrast, the World Bank often uses economic growth indicators, particularly GDP (Gross Domestic Product) as a measure of development. Economic growth is primarily concerned with the increase in the economic output of a country.
2. Focus on Income vs. Quality of Life:
- The World Bank's primary criterion for development is the increase in income, focusing mainly on per capita income to gauge the economic progress of a country. It sees development as the ability of an economy to increase its national income. - The UNDP, on the other hand, looks beyond income and includes factors such as education, health, and life expectancy, reflecting a more holistic view of development that prioritizes the improvement of human well-being rather than just income levels.
3. Approach to Inequality:
- The World Bank focuses on aggregate national measures like GDP per capita, which may overlook income inequality within countries. It often does not address how the benefits of economic growth are distributed among different sections of society. - The UNDP considers inequality as an important factor in its measurement. It adjusts the HDI to create an Inequality-adjusted Human Development Index (IHDI), which takes into account the distribution of achievements in each dimension of human development.
4. Measurement of Sustainable Development:
- The World Bank focuses heavily on economic sustainability, assessing whether a country's economic growth is sustainable over time. However, this is often measured in terms of economic output rather than social or environmental sustainability. - The UNDP’s approach integrates the concept of sustainable human development, emphasizing not just economic growth but also environmental sustainability and social inclusion.