Economic growth is the increase in a country’s real national output. This is caused by increases in the quality or quantity of factors of production, which cause an outward shift in the PPF

Economic development refers to living standards, freedom (from oppression) and life expectancy. Essentially, it covers a more moral side to economic growth and it is normative. Development is also concerned with how sustainable the economy is and whether the needs of future generations can be met

HDI does not consider how free people are politically, their human rights, gender equality or people’s cultural identity. HDI does not take the environment into account. It could be argued that this should be included to focus on human development more. HDI does not consider the distribution of income. A country could have a high HDI but be very unequal. This can mean many people might still be in poverty. HDI does allow for comparisons between countries to be made, based upon which countries are generally more developed than other countries. It provides a much broader comparison between countries than GDP does. Education and health are important development factors to consider, and it can provide information about the country’s infrastructure and opportunities. It also shows how successful government policies have been

In HPI-1, the longevity part of the index measures the probability of living to the age of 40. The education component considers the adult literacy rate. The ability of citizens to meet basic needs is measured by the percentage of underweight children and the percentage of people not using improved water sources

For HPI-2, the probability of not surviving to at least the age of 60 is used. The percentage of adults which do not have literacy skills is calculated, and poverty is calculated by those living below the poverty line. This is below 50% of median income