By Charles Smith (auth.)
ISBN-10: 0333592689
ISBN-13: 9780333592687
ISBN-10: 1349233854
ISBN-13: 9781349233854
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Additional resources for Economic Development, Growth and Welfare
Sample text
This could hardly be described as a satisfactory conclusion. In 1990, the United Nations Development Programme (UNDP) launched a new Human Development Index (HDI) which is published each year in the Human Development Report (HDR) with information about each of 160 countries. The UNDP defines human development as a 'process of enlarging people's choices'. Three choices are deemed to be critical: access to resources (purchasing power, which is calculated from GNP per capita and a calculation of the cost of living); a long and healthy life (as reflected by figures for life expectancy); and education (measured by the adult literacy rate).
It can be seen that within three 'generations' population outstrips food production. Is this inevitable, and if so, why? Food production is subject to the law of diminishing returns, which states that if variable factors (such as labour) are combined with a fixed factor (such as a given amount of land), eventually the resulting increases in output (of food, for instance) will get progressively smaller. This law is one of the few economic laws which appears to hold true without exception. It is, however, a short-run law, which assumes that at least one of the factors of production is fixed.
1 World Population Projections 9 B 7 6 Economic Development, Growth and Welfare by Charles Smith (auth.)
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