This summary is my 1st assignment in Gombak for the 1st semester and its just for my revision. I hope I don't forget about the content of this summary because this additional knowledge is important for me as a student economics.
"Mahbub ul Haq is the person who tries to change the concentration on economic from focusing in the national income accounting to improvement in human well-being. So, he comes out the fresh idea by launched the Human Development Index (HDI) in UNDPs Human Development Reports (HDRs). The HDI is an index to rank countries by level of human development which usually also categorize whether a country is developed, developing or underdeveloped.
There is a reason why he launched this index which is to shift the focus of development economics from national income to people centered policies. Amartya Sen’s argued this idea that it was difficult to measure the human capabilities and skills in the single index. But, according to Haq, this index may shift the attention of policy-makers to be concentrated on human well-being rather than focus on economics performance. There are three dimension of HDI which are life expectancy, knowledge and education as well as standard of living.
However, HDI also has the shortcoming even it has a good vision. The economist and authors have been criticized that HDI is fail to include the ecological aspect which mean not paying attention to development from global perspective. They also labeled this index as redundant because it count the aspect of development that already been studied by others before this.
The opposite of HDI is Misery Index created by economist Arthur Okun and found by adding the unemployment rate to the inflation rate. We can simply conclude that higher rate of unemployment and a worsening of inflation effect economic and social problem to the country. Consequently, the higher Misery Index lead higher Crime Index in the country because both are related each other."
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