Figure 13.8: Illustration of the distribution of income (Gini index) for the different nations in the world
(source: http://en.wikipedia.org/wiki/Gini_coefficient)..)
In Lecture 1 the development of the GDP per capita as well as the life expectancy at birth was
discussed and it was illustrated that for Switzerland these demographical indicators have
evolved significantly over the last 100 years. This development is not special for Switzerland
but is characteristic for all nations which have developed under democratic capitalism. Such
changes may be contributed to a larger number of changes in society. The life expectancy at
birth implicitly accounts for significant changes in the way people live, the quality of housing,
sanitary systems, food availability and quality, general health education, as well as significant
research achievements and general improvements in the medical sector. These achievements
have all been made possible due to a parallel development of the economical capability of
society. The developments in the GDP also include several effects, and are believed to be
strongly interrelated to the life expectancy in the way that significant increases in the life
expectancy towards the end of the 19th century facilitated education and development of a
labour force which in turn facilitated to what is commonly referred to as the industrialization.
In effect it is seen that the life expectancy and the GDP account for many factors beyond
money and years and may be considered strong descriptors of the developments in society.
The inclusion of the Education Index as part of the HDI clearly is relevant for pointing to non-
exploited possibilities for the different nations to improve their developments; however,
implicitly the aspects of education are already accounted for in the LEI and GDP Index.
As mentioned earlier revealed preferences are preferred as compared to stated preferences and
in the subsequent section it will be outlined how on the basis of demographical indicators
preferences in regard to investments for life saving can be inferred.
13.5 Modelling Socio-Economical Acceptable Risks
It is generally accepted that the decisions in regard to the planning, design, execution,
operation and decommissioning of societal infrastructure should take basis in an optimization
of life-cycle benefits using principles of decision making and risk assessment as outlined in
Lecture 3 and Lecture 4. However, in addition to risks due to economical losses the decision