How does Argentina have an higher hdi rank and IHDI rank than Uruguay if Argentina has 57.4% of people living in poverty and Uruguay has only 6.4% of people living under the same definition of poverty. Argentina IHDI rank is 44 Uruguay IHDI rank is 52?

One response

1. The Human Development Index (HDI) and the Inequality-adjusted Human Development Index (IHDI) are both measures that assess a country’s development level, factoring in not just income but also aspects like education and life expectancy. However, they approach these factors differently.

   1. HDI Calculation: HDI is calculated based on average achievements in three basic aspects of human development: health (life expectancy), education (mean years of schooling and expected years of schooling), and standard of living (GNI per capita). Argentina’s higher HDI ranking may reflect more significant achievements in health and education compared to Uruguay, even with a higher poverty rate.

   2. Poverty and Inequality: While Uruguay has a significantly lower poverty rate, which positively influences its social stability and well-being measures, Argentina’s higher levels of inequality may not be fully captured in the standard HDI calculation. The HDI does not account for these disparities in income and living standards among the population.

   3. IHDI Consideration: The IHDI adjusts the HDI by Accounting for inequality. Thus, while Argentina may have a higher HDI by virtue of health and educational achievements, its high poverty rate and income inequality might lower its IHDI ranking. Uruguay’s lower poverty and more equitable income distribution likely contribute to its better IHDI ranking.

   In summary, the differences in HDI and IHDI rankings between Argentina and Uruguay can be attributed to the balancing act between overall achievements in health and education versus the impacts of poverty and inequality on the population’s well-being.

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