SGC Business

GDP only measures one aspect of the welfare of a country i.e. income.

Perhaps a better method to compare countries is to look at the ‘quality of life‘ of its citizens. The United Nations use a Human Development Index to rank countries based on the following criteria:

• Life expectancy
• Adult literacy
• Average income to cover basic needs
• School enrolment
• Educational attainment
• GDP per capita

View the Human Development Index for 2007

Now compare the index for 2007 to the index for 2001 on p.243 in your text.

How has the ‘quality of life’ of Ireland’s citizens changed since 2001?

Do you consider this index to be better than GDP per capita when comparing countries?

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