The Limitations of GDP and the Rise of Human Development Index (HDI)
In recent decades, GDP growth was considered the primary measure of progress. However, this logic is now facing scrutiny as many people in certain growing economies still lack access to basic services. This disconnect between macroeconomic indicators and daily life has led to a reevaluation of how we understand development.
The Human Development Index (HDI), championed by the United Nations Development Programme (UNDP), suggests focusing on what truly matters: health, education, and personal income rather than just economic growth.
UNDP’s 2025 Development Report: A Call for Action in the AI Era
Contrary to showing a robust recovery post-2020-2021 crises, the UNDP’s new 2025 Development Report, titled “A Call to Decide: People and Possibilities in the AI Era,” reveals that development progress has been more fragile than anticipated. Excluding pandemic years, the projected global IDH growth for 2024 is at its lowest since measurements began in 1990. Every region worldwide faces a development slowdown, compelling us to reconsider the kind of future we are building.
Impact on Latin America
In Latin American schools, the pandemic’s hardest years still leave their mark. Children who didn’t return to class, young adults whose studies were cut short, and families prioritizing immediate needs over essentials illustrate why, despite some economic recovery, human development hasn’t regained its pace.
Latin America and the Caribbean experienced a significant drop between 2019 and 2021, though progress has been made; the region hasn’t recovered its pre-crisis growth trajectory. Mexico, situated at a crossroads, ranks 81st out of 193 countries in the global HDI with a high IDH score.
- Life Expectancy: 75.1 years
- Education: A person born today can expect 14.5 years of schooling
- Average Schooling: 9.3 years, slightly above the regional average
- Income: Capita income of $21,813 (PPA 2021), surpassing the regional average of $18,048
These figures show progress in schooling and income but also persistent challenges in health and ensuring complete educational paths for new generations.
AI’s Role in Shaping Human Development
As we continue to tackle persistent social gaps, AI is no longer a distant promise but a present reality transforming work, learning, and interactions. According to a global survey for the UNDP report, seven out of ten people believe AI will boost their productivity, and two-thirds plan to use it in health, education, or employment within the next year.
To leverage this technological revolution for human development in Mexico, bold decisions and clear policies are needed. Mexico could strive for an economy where AI complements—not replaces—humans at work; systems ensuring algorithmic decisions respect human will; and educational and health institutions adopting technology thoughtfully, with purpose and reflection.
*The opinions expressed in this article are solely those of the author and do not represent the organizations they affiliate with.
*The author is a Ph.D. in political science and international development from University College London (UCL) at the University of London. Currently, they serve as an analyst in the Human Development Office of the United Nations Development Programme (UNDP) in New York and are an associate member of the Mexican Council on International Affairs (COMEXI) since 2023.
