Question

UNDP. in what way is the criterion used by UNDP is different from the one used by the world bank.

Answer 1

1. International financial institutions (known as Bretton Woods Institutions) like IFC and World Bank measure a country’s progress only on the basis of GDP.
2. Measuring growth only with GDP has its consequences with important parameters like education, sanitation etc. being ignored.
3. Measures such as education, health care, etc. used by UNDP are a better indicator of the actual state of affairs.
4. Measures such as HDI –Human development index indicate the quantum of impact of development on people by measuring their access to essential services such as sanitation and primary education.
5. Per capita income and GDP have long dominated development debates and this has led to institutions like World Bank not paying enough attention to other alternative indicators.
6. Often the more better HDI indicators, the more stable the country would be even at a lower rate of growth.
7. A higher rate of growth often sacrifices equality.