2Framework : Introduction Concept of human development Differrence between economic growth and economic developmentConcept of HDIOrigin of HDIDimensions of HDICalculation of HDILimitations of HDIIndia’s rank in HDR 2010Highlights of HDR 2010Future 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 world’s problems.”2006 GLOBAL HUMAN DEVELOPMENT REPORT
4Introduction :“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 choicesRealization 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.
5Introduction :The emphasis on growth was based on the assumption that its benefits will automatically“trickle 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.Human development index (HDI),The human poverty index (HPI),The gender-related development index (GDI) andThe gender empowerment measure (GEM)
6Major Steps of the HDR Process 1 Preparatory stage(upto 6mths)Theme selectionResource mobilizationBuilding the teamTraining and orientationCommunications strategy2 Research and writing(6-9monthsResearch first full draft draft for external review final draft3 Production (6-10wks)The final product4. Advocacy andFollow up(Ongoing until next report)Media and communicationsLaunch and outreach strategyMarketing and disseminationMonitoring and assessing impact
7The 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 $1 per day
8Growth versus development Economic growth may be one aspect of economic development but is not the sameEconomic growth:A measure of the value of output of goods and services within a time periodEconomic Development:A measure of the welfare of humans in a society
9Economic growthUsing measures of economic performance in terms of the value of income, expenditure and outputGDP – Gross Domestic ProductThe value of output produced within a country during a time periodGNP – Gross National ProductThe value of output produced within a country plus net property income from abroadGDP/GNP per head/per capitaTakes account of the size of the populationReal GDP/GNPAccounts for differences in price levels in different countries
11Origin of HDI:The index was developed in 1990 by Pakistani economist Mahbub ul Haq and Sir Richard Jolly, with help from Gustav Ranis of Yale University and Lord Meghnad Desai of the London School of Economics
13Dimensions of HDILife expectancy at birth, as an index of population health and longevityKnowledge and education, as measured by the adult literacy rate (with two-thirds weighting) and the combined primary, secondary, and tertiary gross enrollment ratio (with one-third weighting)Standard of living, as measured by the natural logarithm of gross domestic product (GDP) per capita at purchasing power parity (PPP) in United States dollars.
14Calculation of HDITo construct the index, fixed minimum and maximum values have been established for each of these indicators:Life expectancy at birth: 25 years and 85 yearsAdult literacy rate: 0 & 100 %Combined gross enrolment ratio: 0% & 100 %Real GDP per capita (PPP$): $100 & $40,000 (PPP$)
15Individual indices can be computed according to the general formula: Index = Actual xi value – minimum xi value/Maximum xi value – minimum xi valueFor eg: the life expectancy at birth in a country is years the index of life expectancy for the country would be:Life expectancy index = /85-25 = 40/60 =
16The adult literacy rate is 61.0%. Adult literacy index =61.0-0/100-0=0.61Combined gross enrolment ratio is 63.8%Combined gross enrolment index=63.8-0/100-0=0.638Education index=2/3(0.61)+1/3(0.638)=0.62Real GDP is 3452,then adjusted GDP=log(3452)-log(100)/log(40000)-log(100)=0.591Therefore HDI for India= ( )/3 =0.619
17Categories of HDI: High Human Development Index – HDI 0.800 and above Medium Human Development Index – HDI to 0.799Low Human Development Index – HDI below 0.500
18Relationship 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 increasein the HDI of the poorer person should count more.
19Preliminary findings about trends: Since 1970, HDI has converged while GDP has diverged
20Limitations 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 indicators—adult literacy and life expectancy at birth—are 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.
21Human poverty indexHPI – 1 measures deprivations in the three basic dimensions of human development captured in the HDIA 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 ALRA 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.
23HPI-2The 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).
24Highlights of HDR 2010:India’s 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
25During 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.
26Top Ten Countries Three new indices: Three new indices – Inequality adjustment HDI,Gender inequality index andMulti-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
27Top-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.
30References :United Nations Development Programme:Primer: Guidnelines and Tools For Statistical Research, Analysis and Advocacy,Iintroduction;September 2007.United Nations Development Programme:Primer: Statistical Principles in Human Development Analysis, Chapter 1;September 2007.United Nations Development Programme:Primer: Select Dimensions of Measuring Human Development , Chapter 2;September 2007.United Nations Development Programme:Primer: Advocacing for Change With Human Development Data, Chapter 3;September 2007.India 134 on UN development index - The Times of India index/articleshow/ cms#ixzz14wZnMuxo"History of the Human Development Report". United Nations Development Programme."2010 Human development Report". United Nations Development Programme