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The HDI is based on three measures: life expectancy at birth (a function of health care), educational attainment (measured by a combination of the adult literacy rate and enrollment in primary, secondary, and tertiary education), and whether average incomes, based on PPP estimates, are sufficient to meet the basic needs of life in a country (adequate food, shelter, and health care).
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Privatization refers to the process of hiring private management consultancy firms to manage state-owned enterprises.
Peruvian development economist Hernando de Soto has argued that the chronic inability of property owners to establish legal title to the property they own is a key problem for innovation, and entrepreneurial activity in developing nations.
Totalitarian states promote human freedom and human development, which facilitates economic progress.
Since the late 1980s, there has been a strong move away from a more free market economic model and toward a more centrally planned and mixed economies.
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