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To some extent, my preference is the Human Development Index (HDI) for

the sake of a more comprehensive measure of the social welfare in a specific

region.

First, in terms of human development, we must admit that a vast majority of

people have equated the concept with the material accumulation by comparing

GDP among countries to indicate their prosperity. Up to the point when HDI was

introduced, the dominant view of development presumed that the level and growth

of income sufficed as the criterion for human well-being. Notwithstanding, to have

an exact measure of a countrys social well- being, not only material wealth

(namely goods and services) but also mental components (including health and

education) must be taken into account. Mahbub ul Haq, the founder of the Human

Development Report, once said that: The objective of development is to create an

enabling environment for people to enjoy long, healthy and creative life.

However, from the calculation of GDP, it is clear that only the values of goods and

services are covered which means that GDP just cares about economic evolution,

regardless of other various elements ranging from environment depletion toliteracy level. Conversely, from HDI prism, it is apparent that although simply

calculated, the index gives us a thorough review of a society with the concern of

GDP per capita, education and health. Obviously, by using the integrity of data

from different domains, HDI helps multiple countries as well as their residents to

be more aware of their contemporary standard of living. Subsequently, in one way

or another, some policies could be designed by the government or the local

authority to enhance the life quality and the social farewell as a whole.

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Second, some may argue that GDP growth is the ground for the

reinforcement and advance in education as well as health care and that it is

unnecessary to have HDI as another index to measure human development.

However, many countries indeed possess not so high GDP but still have a

considerable Human Development Index compared with other much higher-

ranking GDP countries. For example, in the year 2004, Egypts HDI was 0.7,

which was higher than Namibias with the number of roughly over 0.6. By

contrast, the GDP per capita of the former country in the same year was

remarkably lower than that of the latter with approximately 4000 PPP US dollars

and 7.500 PPP US dollars, respectively. The fact is obvious that GDP only covers

the value of economic activities including goods and services produced within a

country. Nevertheless, even a persons income is at an upper level which means

that he could afford and demand for a better healthcare system and education

facility but that country would rather focus on developing its economy than other

such sectors. Consequently, the residents lifespan would not be so satisfactorily

high or there would be few modernized schools to meet with the basic needs of the

inhabitants there. . In addition, many factories in developing countries try their best

to boost their products contributing to GDP but at the same time they damage the

environment such as dumping unprocessed waste right into rivers. This

irresponsible behavior has posed a direct threat to peoples health. Thus, high-

ranking GDP does not refer to relative social well-being of a country whereas HDI

with the content of literacy and longevity at birth can give a broader sense of views

over a countrys social farewell.

Third, HDI also takes the distribution of income into consideration. As

mentioned above, GDP only represents the growth of a nations total income.

However, that growth does not mean that the living standard of its citizens is also

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high. Meanwhile, HDI includes the calculation of GDP per capita which turns out

to be more comprehensive. For example, China is one of the highest GDP in the

world but its GDP per capita is only about $7000 each per year. Apparently, HDI

proves to be the more accurate formula to measure the human well-being in that

country.

In conclusion, a society being better off or not does not depend on the

material wealth that some may mistake. To simplify, it is like one country has a

bigger cake but it is divided inequally while the other country has a smaller cake

but it is divided more equally. That is the matter of how that country expend that

wealth so that its people could have as many beneficial choices as possible

regarding health as well as education. Based on that fact, HDI with the composite

of education, health and command over resources is definitely the better welfare

measurement than mere GDP.