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Moderator : Dr Dambhare, Human Development Index.

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Presentation on theme: "Moderator : Dr Dambhare, Human Development Index."— Presentation transcript:

1 Moderator : Dr Dambhare, Human Development Index

2 Framework : Introduction Concept of human development Differrence between economic growth and economic development Concept of HDI Origin of HDI Dimensions of HDI Calculation of HDI Limitations of HDI Indias rank in HDR 2010 Highlights of HDR 2010 Future projections of HDI

3 Mahatma Gandhi once commented that the difference between what we do and what we are capable of doing would suffice to solve most of the worlds problems GLOBAL HUMAN DEVELOPMENT REPORT

4 Introduction : Wealth is evidently not the good we are seeking; for it is merely useful and for the sake of something else. –Aristotle something else opportunity to realize their potential as human beings about having real choices Realization of human potential. Nobel laureate Amartya Sen calls the capabilities and functionings approach. Not only is it important to achieve more functionings, but it is essential for people to have the capabilities or the freedom to achieve these.

5 Introduction : The emphasis on growth was based on the assumption that its benefits will automaticallytrickle down to poor and marginalized people. The global HDR has created and developed four main composite human development indices to assess measurable dimensions of human development. 1. Human development index (HDI), 2. The human poverty index (HPI), 3. The gender-related development index (GDI) and 4. The gender empowerment measure (GEM)

6 Major Steps of the HDR Process 1 Preparatory stage(upto 6mths) Theme selection Resource mobilization Building the team Training and orientation Communications strategy 2 Research and writing(6-9months Research first full draft draft for external review final draft 3 Production (6-10wks)The final product 4. Advocacy and Follow up (Ongoing until next report) Media and communications Launch and outreach strategy Marketing and dissemination Monitoring and assessing impact

7 The MDGs, which include reducing the proportion of people living in extreme poverty by half between1990 and 2015, define extreme poverty as living on less than $1 per day

8 Growth versus development Economic growth may be one aspect of economic development but is not the same Economic growth: A measure of the value of output of goods and services within a time period Economic Development: A measure of the welfare of humans in a society

9 Economic growth Using measures of economic performance in terms of the value of income, expenditure and output GDP – Gross Domestic Product The value of output produced within a country during a time period GNP – Gross National Product The value of output produced within a country plus net property income from abroad GDP/GNP per head/per capita Takes account of the size of the population Real GDP/GNP Accounts for differences in price levels in different countries

10 Indicators of economic development

11 Origin of HDI: The index was developed in 1990 by Pakistani economist Mahbub ul Haq and Sir Richard Jolly, with help from Gustav Ranis of Yale University and Lord Meghnad Desai of the London School of EconomicsPakistaniMahbub ul HaqYale University Meghnad DesaiLondon School of Economics

12 Human development index

13 Dimensions of HDI Life expectancy at birth, as an index of population health and longevity Life expectancy Knowledge and education, as measured by the adult literacy rate (with two-thirds weighting) and the combined primary, secondary, and tertiary gross enrollment ratio (with one-third weighting) literacygross enrollment ratio Standard of living, as measured by the natural logarithm of gross domestic product (GDP) per capita at purchasing power parity (PPP) in United States dollars. Standard of livingnatural logarithm gross domestic productpurchasing power parityUnited States dollars

14 Calculation of HDI To construct the index, fixed minimum and maximum values have been established for each of these indicators: Life expectancy at birth: 25 years and 85 years Adult literacy rate: 0 & 100 % Combined gross enrolment ratio: 0% & 100 % Real GDP per capita (PPP$): $100 & $40,000 (PPP$)

15 Individual indices can be computed according to the general formula: Index = Actual x i value – minimum x i value/ Maximum x i value – minimum x i value For eg: the life expectancy at birth in a country is 63.7 years the index of life expectancy for the country would be: Life expectancy index = /85-25 = 40/60 = 0.645

16 The adult literacy rate is 61.0%. Adult literacy index =61.0-0/100-0=0.61 Combined gross enrolment ratio is 63.8% Combined gross enrolment index =63.8-0/100-0=0.638 Education index=2/3(0.61)+1/3(0.638)=0.62 Real GDP is 3452,then adjusted GDP =log(3452)-log(100)/log(40000)-log(100)=0.591 Therefore HDI for India= ( )/3 =0.619

17 Categories of HDI: High Human Development Index – HDI and above Medium Human Development Index – HDI to Low Human Development Index – HDI below 0.500

18 Relationship between individual development and human development in general If two people in a relatively unequal society have an HDI of 0.5 and 0.25, respectively, and both increase their level of development by 0.25, they will affect general development in the same magnitude. In a more equal society, however, an increase in the HDI of the poorer person should count more.

19 Preliminary findings about trends: Since 1970, HDI has converged while GDP has diverged

20 Limitations of HDI: Not a comprehensive measure of human development. It only focuses on three dimensions of capabilities. The HDI is not designed to assess progress in human development over a short-term period because two of its component indicatorsadult literacy and life expectancy at birthare not responsive to short-term policy changes. Like any average country measure, the HDI does not account for variations in human development within the country. Countries with the same HDI may be very different in how human development is distributed, either from region to region, or from social group to social group.

21 Human poverty index HPI – 1 measures deprivations in the three basic dimensions of human development captured in the HDI A long & healthy life – vulnerability at a relatively early age, as measured by the probability at birth of not surviving to age 40. Knowledge – exclusion from the world of reading and communications, as measured by the ALR A decent standard of living – lack of access to overall economic provisions, as measured by the un-weighted average of two indicators, the percentage of the population without sustainable access to an improved water sources and the percentage of children under weight for age.


23 HPI-2 The HPI -2 measures deprivation in the same dimensions as the HPI – 1 & also captures social exclusion. Thus it reflects deprivations in four dimensions: A long & healthy life – vulnerability to death at a relatively early age, as measured by the probability at birth of not surviving to age 60. Knowledge – exclusion from the world of reading & communications, as measured by the percentage of adults ( aged 16-65) lacking functional literacy skills. A decent standard of living – as measured by the percentage of people living below the income poverty line (50% of the median adjusted household disposable income). Social exclusion – as measured by the rate of long-term unemployment (12 months or more).

24 Highlights of HDR 2010: Indias rank is 119th in the United Nation's Human Development Index due to poor social infrastructure, mainly in areas of education and healthcare. Covered 169 countries and territories, India's position is way below China (89th spot) and Sri Lanka (91). India came in the 10th position as far as improvement in the income index was concerned but lagged behind neighbouring countries like Bangladesh and Pakistan in education and healthcare. Norway has topped the HDI, with a score of 0.938, in a scale of zero to one. A score of one indicates a perfect level in the index. The Nordic country is followed by Australia at the second place (0.937) and New Zealand with a score of ranked third. The world's largest economy US is fourth with a score of

25 During the last 40 years, life expectancy at birth in India has improved by 16 years, but less than the 23 years in Bangladesh. Average life expectancy at birth in India is currently 64 years, as against 67 years in Pakistan and Bangladesh.

26 Three new indices: Three new indices – Inequality adjustment HDI, Gender inequality index and Multi-dimensional poverty index. Other factors that determined the HDI ranking include empowerment, inequality, education, health, demographic trends, civic and community well being. Top Ten Countries

27 Top-ranked countries: Canada and Norway has been ranked the highest eight times each, followed by Japan which has been ranked highest three times. Iceland has been ranked highest twice.CanadaNorwayJapanIceland

28 Others measures

29 Future projectionsFuture projections……

30 References : 1. United Nations Development Programme:Primer: Guidnelines and Tools For Statistical Research, Analysis and Advocacy,Iintroduction;September United Nations Development Programme:Primer: Statistical Principles in Human Development Analysis, Chapter 1;September United Nations Development Programme:Primer: Select Dimensions of Measuring Human Development, Chapter 2;September United Nations Development Programme:Primer: Advocacing for Change With Human Development Data, Chapter 3;September India 134 on UN development index - The Times of India index/articleshow/ cms#ixzz14wZnMuxo India 134 on UN development index - The Times of India index/articleshow/ cms#ixzz14wZnMuxo "History of the Human Development Report". United Nations Development Programme. "History of the Human Development Report"United Nations Development Programme 10. "2010 Human development Report". United Nations Development Programme"2010 Human development Report"United Nations Development Programme 11.

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