ECON 164: Indian Economy

Q3. For the most part, our focus on this course is on economic prosperity as measured by GDP/Capita. Yet, prominent economists including Nobel Prize winner Amartya Sen have argued that GDP/Capita may not be an adequate measure of development. Why do they argue this? What is the HDI (define the components)? How does the HDI attempt to solve this problem? In practice, there may not be much of a difference in rankings of countries when ranked by GDP/capita and when ranked by HDI. Why is this the case