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Unformatted text preview: further improvement even in rich countries. But the HDI doesn't allow this. Since rich countries are already close to the upper bound, the HDI will not fairly represent the actual level of development. Another possible drawback of HDI is the overstatement of the amount of schooling. In many countries a student who begins a primary school is counted as enrolled without considering the fact that the student might drop out at one stage and thus bias the actual statistics. 2) One common misperception is that result from country’s being too small to be self sufficient. However there is no necessary coloration between country size in population or area and economic development. For example some small countries in Europe such as Andorra, Monaco, Liechtenstein and San Marino have very high income per capita....
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This note was uploaded on 03/02/2010 for the course ECON 633 taught by Professor Guild during the Spring '10 term at Aarhus Universitet.
- Spring '10